Updated September 19, 2025- Kenya’s industrial transformation ambitions received a major boost as KCB Group and the African Export-Import Bank (Afreximbank) formalized an $800 million financing partnership to boost development works of the Vipingo Special Economic Zone in Kilifi County.
Under the agreement, Afreximbank and KCB Group will issue an initial funding that amounts to US$ 500 million and US$ 300 million, respectively towards the initiative. Furthermore, this marks one of the largest private-public financing commitments to Kenya’s special economic zones program.
Also, this comprehensive financing framework promises to revolutionize how investors access capital within the Vipingo SEZ, offering a full spectrum of financial products. These financial products include working capital, project finance, trade financing, guarantees, advisory services, and project preparation facilities. The arrangement especially targets enterprises in manufacturing, agro-processing, logistics, and value-addition sectors. Other than Vipingo SEZ, projects such as Dungu Kundu SEZ are also taking shape as investors rush to establish businesses.
One of these is the highly controversial and disputed Taifa gas plant which seeks to be established in the region. Construction of the $125 million Taifa gas plant in Mombasa is facing major setback as client company moves to the Court of Appeal. Taifa Gas Investments SEZ Ltd is seeking to overturn the ruling by the Environment and Land Court that is halting the project’s implementation. The plant that is expected to be constructed in Dongo Kundu aims to get past this hurdle as it appeals on the suspension. The company is associated with Tanzania’s billionaire businessman Rostam Aziz. Their aim in appealing is to have the Court of Appeal entirely set aside the orders and directions of the Environment and Land Court (ELC).
March 21, 2025
Centum Investment Company PLC entered into a partnership with ARISE, who are a prominent developer of industrial ecosystems in Africa, to launch a $3 billion project at the Vipingo Special Economic Zone (VSEZ). This ambitious project located at the Kenyan coast is expected to create up to 500,000 jobs.
Furthermore, the agreement that was reached between the two sides entails the development of a 2,000-acre site recently designated as a Special Economic Zone (SEZ). Additionally, this ambitious undertaking will transform Kenya into a competitive industrial hub in Africa once completed.
Also read: $134 Million Set Aside by the Kenyan Government as Construction of Dongo Kundu SEZ Berth Takes Shape
Project Factsheet
Cost:
It is expected to attend $3 billion worth investments
Partnership:
- The project is a collaboration between Centum Investment Company PLC and ARISE Integrated Industrial Platforms.
Location:
The VSEZ is located in Vipingo, Kilifi County, on the Kenyan coast, 42 Kilometers from Mombasa
Size:
It encompasses a 2,000-acre site.
Significance:
- The VSEZ aims to transform Kenya into a competitive industrial hub.
- It is designed to lower costs, streamline operations, and maximize profitability for businesses.
- It will function as a manufacturing, logistics, and business
- It is expected to create 500,000 jobs.
- It will contribute to Kenya’s economic growth through industrialization.
Sectors:
The VSEZ will focus on high-growth sectors, including:
- Automotive
- Pharmaceuticals
- Agro-processing
Infrastructure and amenities:
- The zone will provide a sustainable business environment with modern infrastructure and amenities.
- Plans include residential areas, commercial spaces, and a logistics zone.
Strategic Importance
Its strategic location provides direct access to major shipping routes, enhancing connectivity with Tanzania.
According to the CEO of Centum, Dr James Mworia, this strategic partnership is expected to utilize the expertise of ARISE in the management of industrial zones to develop the VSEZ into a major manufacturing, logistics, and business park.
Significance of the Project
Additionally he also emphasized the project’s significance stating, “Vipingo SEZ is a very transformative project that will provide jobs for thousands of youths and mark Kenya as a top destination for investment.”
Gagan Gupta, the founder and CEO of ARISE Integrated Industrial Platforms, stated that they were honoured to be part of this ambitious development. This marks a major milestone for the expansion of the firm’s industrial model into East Africa.
Also read: Multi Billion Dongo Kundu Taifa Gas LPG Storage Facility Under Construction in Kenya
Also, as for the location, the VSEZ is located 42 kilometres from Mombasa. It is expected to provide direct access to the major shipping routes, enhancing general connectivity with neighbouring Tanzania. Additionally, the project is expected to attract investments that add up to $3 billion and generate both direct and indirect jobs.
Facilities at the Vipingo Special Economic Zone
Furthermore, this upcoming park will contain a number of high growth sectors like automotive, pharmaceuticals, and lastly agro processing. Furthermore, this ambitious project promises a sustainable business environment that will have modern infrastructure and facilities.
Additionally, it will have residential areas, commercial spaces, and a logistics zone. This project aims to provide for the needs of a wide range of industries while fostering regional economic growth.
Similar Projects
Also, the Lapsset Corridor Development Authority seeks to develop a Special Economic Zone in Lamu. With the rise of SEZ projects being proposed for development along the Kenyan coast region, the project will be key in economic growth of the region.
