The Kenyan government has pledged to fast-track the issuance of land titles to neighboring countries allocated parcels of land at the Naivasha Inland Container Depot (ICD). This initiative aims to unlock the potential of the Naivasha ICD, facilitate investment, and strengthen regional trade ties.
Transport Principal Secretary Mohamed Daghar made the announcement during the Regional Workshop of the Northern Corridor Member States for the Development of Naivasha Land, hosted by the Northern Corridor Transit and Transport Coordination Authority (NCTTCA). He noted that the Ministry of Transport is collaborating with the Ministry of Foreign and Diaspora Affairs to ensure the transfer of land titles is completed promptly.
“We are working together with the Ministry of Foreign and Diaspora Affairs to ensure all titles are issued as per the directive given to the member states using the Mombasa Port, including South Sudan, Rwanda, Burundi, Uganda, and the Democratic Republic of Congo,” Daghar said.
Enhancing Regional Trade Infrastructure
The Naivasha ICD has been earmarked as a critical node for regional trade. The facility is expected to ease congestion at the Port of Mombasa while serving as a logistics hub for imports and exports. Land parcels were allocated to countries such as South Sudan, Rwanda, and Burundi for the development of cargo handling facilities and warehouses. However, delays in transferring the titles have stalled progress.
According to Daghar, the government is committed to overcoming these challenges to ensure the ICD fulfills its purpose. The depot will form part of a broader strategy to enhance trade efficiency within the Northern Corridor, a key route connecting Kenya to its landlocked neighbors.
The facility is also envisioned to act as a consolidation point for Kenyan exports, aiming to improve the balance of trade in the region. NCTTCA Executive Director John Deng emphasized this point, stating, “We expect warehouses and transport facilities to be developed, not just for logistics but also to stimulate production around Naivasha. We want to consolidate cargo for export and promote exports, given that currently, less than 30% of container throughput is exports.”
Expansion Plans for Logistics Hubs
Kenya’s plans for developing inland logistics hubs are not limited to Naivasha. The government is working on extending the Standard Gauge Railway (SGR) to Kisumu as part of Phase 2B, covering 262 kilometers, with an additional 8.9-kilometer link to Kisumu Port. The line will eventually extend from Kisumu to Malaba, covering 106 kilometers.
The Naivasha ICD, along with other facilities like the Nairobi ICD and the proposed Lamu ICD, is set to play a pivotal role in the seamless movement of goods and services. These depots will help reduce cargo congestion at ports and ensure efficient distribution across the region.
Special Economic Zones and Regional Investment
The Naivasha ICD has also been identified as a potential special economic zone (SEZ). By housing warehouses and transport facilities, the area could become a hub for value addition and industrial growth. The government envisions leveraging this SEZ status to attract investment and boost production, ultimately increasing export volumes and improving Kenya’s trade balance.
John Deng highlighted the importance of the ICD’s development in mobilizing regional resources. “We are looking at this as a logistics base for other countries, but from Kenya’s perspective, it will be a consolidation point for exports. We aim to stimulate production around Naivasha to promote exports,” he stated.
Dongo Kundu SEZ Developments
Additionally, the government announced that construction of Berth 1 at the Dongo Kundu Special Economic Zone (SEZ) is set to commence soon. This follows the signing of a contract with a Japanese company, marking another step in enhancing Kenya’s trade infrastructure.
The combined efforts to develop the Naivasha ICD and other key projects like the Dongo Kundu SEZ demonstrate Kenya’s commitment to regional trade integration. By expediting land title transfers and investing in logistics infrastructure, the government is setting the stage for economic growth and increased trade efficiency across the region.
