President William Ruto has promised investors operating in the Mombasa Special Economic Zone (SEZ) a preferential electricity tariff of Sh10 per kilowatt-hour as the government moves to lower the cost of production and boost Kenya’s industrial competitiveness.
Speaking during an engagement on the development of the Mombasa SEZ, Ruto said the preferential tariff would specifically benefit investors in special economic zones as part of government support for industrial development.
“This includes a preferential electricity tariff of Kenya shillings 10 per kilowatt for special economic zone investors,” Ruto said.
Ruto said the government’s objective was to reduce the cost of production for enterprises operating in the zones so that goods manufactured in Kenya could compete in regional and international markets.
“Our objective is straightforward, to lower the cost of production so that goods made in Kenya can compete successfully in the region and in the global market,” he said.
Ruto said the government would support the industrial ambition of the Mombasa SEZ by providing the infrastructure required to make businesses operating in the zone competitive.
He said enterprises based at the zone would have access to major transport infrastructure, including the Port of Mombasa and the Standard Gauge Railway, as well as regional transport networks.
Ruto said the connectivity would allow businesses operating in the zone to access Kenya’s domestic market and the East African Community market.
He further said the enterprises would be connected to the wider African market through the African Continental Free Trade Area, which he described as a continental market of immense scale.
Ruto also committed the government to completing a one-kilometre road linking the SEZ to a major trunk road in Mombasa within 120 days.
“I have given my commitment that in the next 120 days that road will be made,” he said.
Ruto said he had made the commitment after the chairman of DP World raised the need for the road during their engagement.
He said he expected the developer, Shabal and DP World, to complete the SEZ within six months.
“It is also the reason why I’ve told our friends, Shabal and DP World, that this zone must be complete in the next six months,” Ruto said.
The President said he was deliberately attaching timelines to his commitments because he wanted government engagements to result in measurable action.
“The people of Kenya know me as somebody who keeps and makes sure that timelines are part of my engagement,” he said.
Ruto said the Mombasa SEZ project had been under discussion for years, noting that it had previously formed part of plans associated with former Mombasa governor Ali Hassan Joho about 15 years ago.
He said the project had also featured in the plans of Shabal and Abdul Swamad when they were competing for leadership positions.
Ruto said Abdul Swamad approached him during the administration’s first year in office seeking a licence for a special economic zone, which he said was granted immediately.
He, however, said three years had passed since the licence was issued, prompting him to insist on clear timelines for the completion of the project.
Ruto said the government’s commitments on electricity, roads and other infrastructure were intended to create conditions that would enable the SEZ to attract investment and support manufacturing.
