Regulations slow down launch of industrial park in Eldoret

Engineers take Uasin Gishu Governor Jackson Mandago (right) on a tour of one of the upcoming factories at the Sh200 billion industrial park in Eldoret on September 18, 2018. PHOTO | DENNIS LUBANGA | NATION MEDIA GROUP

What you need to know:

  • Chung said the heavy rains experienced in the region recently had also hampered the implementation of the project.
  • The project is expected to be one of Africa’s tech hub offering employment and propelling economic growth.

Regulatory demands put in place by the government for the establishment of special economic zones are among factors presenting a challenge to the construction of the Sh200 billion industrial park in Eldoret.

The construction of the first ever private park in the country dubbed Pearl River Economic Special Zone began two months ago, over a year after it was commissioned by Deputy President William Ruto.

The construction is being carried out by a consortium that includes Chinese company Guangdong New South Group Ltd.

Pearl’s Senior Manager Vagas Chung on Sunday told Nation the construction of the first four factories had begun, but they were afraid they could not penetrate the entire East African market because of the regulations.

“For example, the Special Economic Zones Regulations, 2016 clearly stipulates that no retail trade in goods produced in the export processing zone or imported into the export processing zone shall be conducted within the export processing zone,” he said.

RAIN

He further noted that the Special Economic Zones Act set the bar high for the establishment of such projects - including dozens of obligations that must be met by proprietors of industrial parks.

The obligations touch on what locals should get from such a project and how to conserve the environment: waste disposal and land use within the zone.

Other than taking time to adhere to these regulations, Mr Chung said the heavy rains experienced in the region recently had also hampered the implementation of the project.

“We could not do much at the site owing to the rains that have been pounding parts of the North Rift region,” he said.

He noted that the industrial park will accommodate more than 400 industries. Out of these, more than 30 will house agricultural products for export.

“By mid next year, the four factories with the potential of manufacturing mosquito nets, processing tea, peas and a power plant should be up and running if all goes well,” Mr Chung said.

SECURITY

He added that the construction of staff houses and Kenya Revenue Authority custom warehouses had kicked off at the site.

“More police officers and security guards are to be deployed to secure the site as we embark on the construction of the project,” the senior firm engineer added.

He disclosed that his team has sunk a 200-meter borehole for provision of steady water.

The project is close to Eldoret International Airport and Eldoret central business district. The work will be undertaken in three phases.

And it is expected to be one of Africa’s tech hub offering employment and propelling economic growth.

HOUSING

Uasin Gishu ICT Executive Emily Kogos said the devolved unit is committed to ensuring the smooth implementation of the project.

She said the project is part of the Big Four agenda of delivering 500,000 affordable and social housing units.

And speaking when he hosted a Chinese delegation that was on a feasibility study of the AEZ, Governor Jackson Mandago endorsed the merits of the project.

“The county and national governments are working to see that the project succeeds. My government will provide all that is required to fast-track the implementation of the project,” he said.