Kenya’s coast is emerging as a major industrial and logistics platform, with fresh private investment in Mombasa and proposed energy and agro-processing projects in Lamu giving new momentum to the country’s Special Economic Zone (SEZ) strategy.

The latest development is the formalization of a joint venture between Dubai-based logistics giant DP World and Kenya’s GulfCap Africa to develop a 222-hectare Mombasa Industrial Park, less than 20 kilometres from the Port of Mombasa.

The agreement, signed in Nairobi in the presence of President William Ruto, moves the project beyond the initial partnership announced in August and establishes the corporate structure for implementation. The first phase will cover 40 hectares.

More than 60 local and international companies have already expressed interest in locating in the industrial park, according to DP World, underlining growing appetite for industrial space close to the port and major transport corridors. When fully developed, the project is expected to support more than 20,000 direct and indirect jobs.

The development comes as Mombasa’s much larger Dongo Kundu SEZ also moves from years of planning towards physical implementation.

The 3,000-acre Dongo Kundu SEZ is being developed as a public economic zone and is strategically positioned next to the Port of Mombasa, the Southern Bypass, the Standard Gauge Railway and Moi International Airport. Its planned activities include manufacturing, processing, assembly, logistics, warehousing, cargo consolidation, energy, tourism and business services.

At the centre of the development is Dongo Kundu Berth One, a 300-metre multipurpose facility being built specifically to provide a maritime gateway for industries operating within the SEZ.

The Sh41 billion berth is currently under construction and is expected to be completed by December 2028. Government officials said recently that construction was about 16 per cent complete. The facility is intended to improve cargo handling and reduce logistics costs for companies setting up inside the economic zone.

The berth is particularly important because it changes the economic proposition of Dongo Kundu from simply an industrial estate into an integrated port-industrial complex. Cargo will move from ships directly into the SEZ for processing, manufacturing, storage and distribution before being transported to Kenya and regional markets.

The government is also developing supporting infrastructure, including electricity, water utilities and transport connections. One of the largest private investments already taking shape is the Taifa Gas facility, whose construction was recently reported to be about 85 per cent complete.

The number of prospective investors is also rising. Government officials said 94 investors had expressed interest in establishing operations within Dongo Kundu, suggesting that the zone is beginning to move from a long-term infrastructure proposal towards an investment destination.

The emerging industrial cluster could give Mombasa a role beyond handling imports and exports. The SEZ authority has identified sectors including agro-processing, textiles and apparel, pharmaceuticals, automotive assembly, blue economy activities, renewable energy, petrochemicals, oil and gas, logistics and warehousing.

This model also fits into Kenya’s broader strategy of using SEZs to attract foreign investment, expand manufacturing, promote value addition and strengthen regional trade.

Further north, Lamu is also being positioned as another major coastal investment hub through the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor.

The proposed $15-16 billion Dangote refinery, with a planned capacity of up to 700,000 barrels per day, could provide a major industrial anchor for the Lamu SEZ if financing, crude supply, and other infrastructure challenges are overcome. The project is expected to be located within the LAPSSET special economic zone.

Lamu is also pursuing palm oil investments, including plantations and a proposed refinery, creating the possibility of an agro-processing cluster around the port.

Together, the developments in Mombasa and Lamu point to an emerging coastal economic model in which ports are increasingly linked to manufacturing, energy, processing, warehousing and regional distribution.