State to put up special zone for ICT firms

The government is set to create a Special Economic Zone (SEZ) in Kitengela, Athi River to drive its implementation of Vision 2030.

Already, the government is seeking to purchase land of not less than 3,000 acres which will host an information communication technology (ICT) park, science park, industrial park and small and medium enterprises (SME) park.

Efforts to determine the amount to be spent were not successful as calls to Information PS, Dr Bitange Ndemo went unanswered.

“The government therefore through the Ministry of Information and Communications wishes to purchase land in Kitengela, Athi River area for the purpose of implementing various Vision 2030 projects” the advertisement in the press on Wednesday said.

A Special Economic Zone is a geographical region that has economic laws that are more liberal than a country’s typical laws.

It includes a wide range of more specific zone types like free trade zones and export promotion zones, among others.

When contacted on Wednesday, Kenya ICT Board chief executive officer, Paul Kukubo, said the plan was part of establishing the ICT park to attract Business Process Outsourcing into the country.

The purpose is of setting up SEZ is to encourage mainly foreign investment through offering several incentives that include tax waivers, tax holidays among others.

Countries like China and India have thrived through setting up the special economic zones.

In this year’s budget, the government allocated Sh900 million for the construction of ICT park.

The envisaged Special Economic Zone is expected to be within 30 minutes drive from Jomo Kenyatta International Airport, which is being developed into a regional business hub.

The special economic zone will be an addition to the Export Processing Zones, which are also located in the area set up in 1990s with the purpose of promoting industries to tap into American market under the Africa Growth and Opportunities Act (AGOA).