Land, political goodwill set stage for Machakos growth

As land prices in Nairobi and parts of Kajiado go through the roof, Machakos is using the availability of expansive and affordable land as the key to attracting investors to the county.

Experts also say that the political goodwill of the county governor, Dr Alfred Mutua, who has aggressively courted investors, coupled with fairly quick processing of business permits, are turning Machakos County into the preferred destination for international companies seeking to set up base in the country.

Last week, investors from China indicated that they would set up an exclusive city at a cost of Sh65 billion to take advantage of the new government policy of creating special economic zones.

The county is already hosting the old Machakos town, the county-initiated new city, and the Konza ICT city, a national government project meant to propel the country to become an ICT hub in Africa.

Some experts say it is not by coincidence that the county is turning out to be the fastest urbanising in the country.

Its proximity to Nairobi — which has international connections — just 65 kilometres away means that investors can enjoy the heavy infrastructure of the capital city.

Dr Mutua’s open policy has added the required impetus to turning this largely semi-arid county into an industrial and trading area as the country seeks to attain industrial status, according to the Kenya Vision 2030 blueprint.

“The processing of approvals in the county management regime is fairly fast and easy while the expansive land offered at fairly low prices are an attraction for many potential investors to Machakos,” said Mr Mwenda Makathimo, an expert in land economics.

An investment conference held in Machakos last year saw companies pledge Sh2 trillion investment in the new city.

Experts say that congestion and high cost of land in Nairobi is going to play a great role in pulling manufacturing companies to Machakos, with the firms riding on the heavy infrastructure development in the capital city.

“Machakos is scouting for companies that are frustrated by lack of land and traffic congestion in Nairobi. It is conscious of the fact that as the economy grows, the middle class will expand further, increasing consumption. Manufacturing companies have to find more space to expand their production,” said a source who requested not to be named because he is not authorised to speak on behalf of the county.

The government intends to create special economic zones to replace the current export processing zones. These will have greater mandate, including promotion of trade, science and technology, and manufacturing.

According to the Kenya Vision 2030 blueprint, the special economic zones will include agricultural and industrial parks and science and technology parks for the development and production of information technology software and hardware.

They will include an agro-industrial zone incorporating activities such as blending and packaging of fertiliser, tea, and coffee and a consolidated meat and fish processing facility to encourage growth of offshore fishing.

“Machakos is offering incentives like affordable land and is looking at the multiplier effect of the investments that residents will enjoy over time. This political goodwill is the kind that sends signals to the investors,” said Mr Ibrahim Mwathane, also a land expert.

So far, the companies that are reported to have expressed an interest in setting up base in the county include Stimaken — a French solar energy panel manufacturing company, Jet Industrial Park, Devki Steel Industries, Silver corporation — a real estate company interested in developing low cost housing, and Nairobi Hospital.

The county government’s decision to position Machakos as a filmmaking centre is another added cap to tap into the estimated Sh40 billion industry that remains largely under-exploited.

Machakos is located 65 kilometres from Nairobi and hence has access to the Jomo Kenyatta International Airport and the Nairobi-Mombasa highway. This could give the county a competitive edge as the possible next industrial area.

The railway with terminus at Syokimau further boosts the connection of the county to the capital. 

Experts also say that availability of building materials like sand, ballast, stones and cement in the area are other added benefits. Together, they have the potential to lower transport charges and overall cost of construction which is a boon to the investors.

According to Vision 2030, the Mombasa special economic zone will facilitate importation of necessary raw materials and exporting of finished goods.