A significant milestone in industrial development has been marked with the official launch of Kifaru Exim SEZ Ltd, a privately developed Special Economic Zone (SEZ) aimed at boosting Small and Medium Enterprises (SMEs) in export-oriented manufacturing.
The facility, located within the thriving Tatu City SEZ, was inaugurated by Mr. Abubakar Hassan Abubakar, CBS, Principal Secretary of the State Department for Investment Promotion, who lauded the initiative as a “major turning point” in Kenya’s efforts to industrialize through SME empowerment.
“This is a noble initiative, one of its kind, developed by private sector investors that will enable SMEs to fully utilize the fiscal incentives and infrastructure offered through the SEZ framework,”said PS. Abubakar.
Strategic Location for Industrial Growth
Tatu City, Kenya’s first operational private SEZ established in 2011, now hosts over 40 licensed enterprises—more than half of the country’s SEZ firms—with a cumulative investment value of approximately US\$ 3 billion and a workforce of over 15,000 people.
Kifaru Exim SEZ Ltd joins this vibrant ecosystem with nine Grade A warehouses ready for SME occupancy, offering units between 902 and 1,229 square meters totaling 9,254 square meters of industrial space. The facilities provide reliable utilities, advanced safety systems, and integrated logistics—positioning SMEs for both domestic growth and export success.
The launch aligns with Kenya’s Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA), which identify manufacturing as a key sector for economic transformation.
“Manufacturing remains a fundamental engine for generating wealth, creating employment, and reducing reliance on raw exports,” said PS. Abubakar, citing the four pillars of industrial growth: global competitiveness, export-led growth, industrializing agriculture, and SME development.
Government Support for SMEs and Investors
To enhance private sector growth and mitigate investment risks, the Ministry is implementing several support programs:
DRIVE Project: Financed by the World Bank, to integrate pastoralists into value chains and enhance access to financial services.
SAFER Program: Tackling financing barriers for MSMEs.
KJET Green Investment Fund: Supporting green technologies in SMEs.
Climate Disaster Credit Facility: Strengthening MSME climate resilience.
US\$15 million Exim Bank of India Credit Line: For machinery and equipment purchases.
The government is also finalizing a policy and legal framework for Chambers of Commerce and is currently in talks with China for duty-free, quota-free market access for Kenyan products like tea and avocados.
On the macroeconomic front, PS. Abubakar noted encouraging trends: Inflation fell from 9.6% in October 2022 to 4.1% in July 2025. At the same time, the Kenya Shilling stabilized at Kshs. 129/USD while Forex reserves increased from US\$6.5 billion to US\$11 billion, extending import cover to five months.
In his concluding remarks, PS. Abubakar commended Kifaru Exim SEZ and its partners, including the SME Support Centre and the Kenya Association of Manufacturers, for their role in strengthening Kenya’s industrial base.
“I urge SMEs and other investors to take up these world-class facilities, scale up their production, increase exports, and further boost our forex reserves,”* he said.
The launch of Kifaru Exim SEZ is expected to catalyze SME-led manufacturing, foster innovation, and strengthen Kenya’s position as a regional industrial hub.