The Kenyan government said on Tuesday that it
would create Special Economic Zones (SEZs) in six months to replace Export Processing Zones (EPZ) which has been facing problems.
Trade Assistant Minister Omingo Magara said the Kenyan government is committed to partnering with private sector players to ensure the transformation is realized in good time.
"I can tell you through close linkages between the private sector and the government we
can help you to achieve this goal, but we must partner in every step of the way to ensure we
are in agreement," Magara 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.
Magara said the new areas will offer greater incentives to investors while addressing the
weaknesses found in the EPZ which were set up in the 1990s to accelerate industrialization.
The development follows the launch of a draft policy on Special Economic Zones (SEZs)
on Tuesday to be discussed by stakeholders before being presented to Parliament for adoption into law.
Magara said the government intends to conclude the process of setting up the zones in the shortest time possible. "We want to give the commitment that the government wants the new
economic zones launched in six months," Magara said.
He said after the fine tuning of the draft, it would then be taken to Parliament for debate.
EPZs, which were set up to supply the American market under the African Growth and Opportunities Act (AGOA), mainly dealing with the textiles, have been experiencing challenges after the multi-fibre agreement was removed in 2005.
The move allowed low cost newly industrialized countries in the Far East to compete directly for the same market. This has led to several textile companies folding up and others relocating.