State Allocates Sh1.4 Billion for Dongo-Kundu Land Compensation to Fast-Track Special Economic Zone Development

The Kenyan government has allocated Sh1.4 billion for land compensation in the Dongo-Kundu Special Economic Zone, aiming to hasten the process and ensure the availability of land for investment opportunities. Cabinet Secretary for Investments, Trade, and Industry, Salim Mvurya, announced that the Kenya Ports Authority (KPA), as the implementing agency, has already received the funds to conclude the compensation program by next month. The compensation will cover 430 acres of land, directly benefiting 1,648 project-affected persons, who will be allocated new land and supported in developing these areas.

Speaking during a progress update meeting at the Kenya Ports Authority headquarters, Mvurya emphasized that KPA would provide the necessary leadership to ensure the smooth operation of the compensation process, including addressing grievances from affected persons. The meeting was attended by Kwale and Mombasa governors, various government agencies, the Principal Secretary for Investment Abubakar Hassan Abubakar, and KPA’s Chair and Managing Director.

Mvurya highlighted that the compensation process is vital for facilitating the development of horizontal infrastructure, such as roads, water supply, and power stations, which are essential for the operational success of the Special Economic Zone. He noted that the government’s partnership with the Japan International Cooperation Agency (JICA) would play a significant role in funding the infrastructure development. JICA has committed Sh58 billion for infrastructure, including piping water from Tiwi to the Special Economic Zone.

Mvurya disclosed that the Special Economic Zone has already attracted significant investor interest, with 97 applications submitted by potential investors. Out of these, 60 are from local investors, while the rest are from international investors. Three investors are set to commence operations this week as their application processes are finalized.

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The Cabinet Secretary elaborated on the diversity of investment interests, ranging from automobile assembly and pharmaceuticals to opportunities in the Blue Economy. Additionally, some investors are keen on collaborating with the Port of Mombasa to enhance its operational capabilities. He emphasized the importance of developing new skills to meet the needs of the Special Economic Zone, highlighting the allocation of a budget for vocational training. This initiative aims to equip the youth with basic skills and facilitate collaborations with local universities to develop key competencies required in the zone.

Mombasa Senator Mwinyi Haji Faki, speaking on behalf of coastal leaders, praised the government’s commitment to vocational training, noting its potential to significantly impact the youth in the coastal region. He also called for transparency in the committees established to address disputes among local residents concerning the compensation process.

The development of the Dongo-Kundu Special Economic Zone is seen as a critical step in boosting the economic profile of the region. By compensating landowners and investing in essential infrastructure, the government aims to create a conducive environment for both local and international investors. This initiative is expected to stimulate economic growth, create job opportunities, and enhance the overall development of the coastal region.

The partnership with JICA and the substantial investment in infrastructure underscore the government’s commitment to making the Dongo-Kundu Special Economic Zone a key hub for trade and industry. The focus on skills development and collaboration with educational institutions further aligns with the broader goal of sustainable economic growth and development in the region.

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As the compensation process moves forward, the government’s efforts in maintaining transparency and addressing community grievances will be crucial in ensuring the smooth implementation of the Special Economic Zone and fostering positive relationships with the local population.