Compensation Begins for 1,648 Affected by Dongo Kundu SEZ Project

The Kenyan government has initiated compensation for the 1,648 individuals affected by the Dongo Kundu Special Economic Zone (SEZ) project, marking a significant step in the smooth implementation of this ambitious development plan. The disbursement of Sh1.4 billion is set to begin this week, with a view to addressing the impact on local communities in Mombasa and Kwale counties.

Investments, Trade, and Industry Cabinet Secretary (CS) Salim Mvurya announced the commencement of this compensation, underscoring the government’s commitment to resolving any issues that could hinder the progress of the Dongo Kundu SEZ. The compensation process, managed by the Kenya Ports Authority (KPA), follows a thorough verification of the affected persons, ensuring that the list of beneficiaries is accurate and comprehensive.

“The compensation will begin this week. We have agreed to work together with relevant stakeholders to ensure that we unlock all the bottlenecks to have the project come to fruition,” Mvurya stated. His comments followed a meeting with key stakeholders, including KPA Chair Benjamin Tayari, Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project Chair Ali Mbogo, and Special Economic Zones Authority Chair Fredrick Mutete.

In addition to the financial compensation, the government has allocated 400 acres of land for the resettlement of those affected by the Dongo Kundu project. This move aims to safeguard their livelihoods and provide a stable foundation for their future.

The Dongo Kundu SEZ, spanning 3,000 acres, has already attracted interest from 97 investors, with 60% of them being local residents and 40% international. The zone is poised to become a hub for key industries such as energy, pharmaceuticals, and glass manufacturing. The influx of investors reflects the project’s potential to stimulate economic growth and create job opportunities in the region.

To further bolster Kenya’s economic landscape, the government is also preparing to gazette the Lamu Port South Sudan-Ethiopia Corridor Development Authority (LAPSSET) SEZ. This initiative aims to drive investment and business activities in the area, with early interest from sectors like desalination, fish processing, and pharmaceuticals.

The LAPSSET SEZ is anticipated to play a pivotal role in enhancing the sustainability and activity at Lamu Port. By providing infrastructure and facilities to support various industries, the SEZ is expected to contribute significantly to the region’s economic development.

However, CS Mvurya has issued a stern warning to investors who hold licenses within the SEZs but have yet to commence operations. He emphasized that the Special Economic Zones Authority (SEZA) will review the list of investors and may revoke licenses for those who do not meet the required timelines.

“I firmly urge investors to tow the line within the six-month grace period. If not, the licenses will be repealed by the authority,” Mvurya warned. This directive underscores the government’s commitment to ensuring that investments translate into tangible development within the SEZs.

On August 21, Mvurya had previously addressed concerns about dormant investors, stressing the need for timely investment and development. He directed SEZA to enforce compliance, ensuring that investors adhere to their obligations or face the revocation of their licenses.

The commencement of compensation for the Dongo Kundu SEZ project signifies a crucial milestone in the government’s efforts to foster economic development while addressing the needs of affected communities. As the project progresses, the focus will remain on maintaining momentum and ensuring that the benefits of the SEZ are realized for both investors and local residents.