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Trade Cabinet Secretary Moses Kuria’s ministry has received a shot in the arm with funding to the tune of Sh420 billion.
On Tuesday, August 8, Cabinet welcomed and approved the planned investment of Sh420 billion towards growing the manufacturing and exports sector thus creating jobs and achieve inclusive growth.
AFREXIM Bank has committed Sh420 billion to invest in special economic zones in Dongo Kundu, Naivasha and Isiolo as well as Export Processing Zones in Sagana, Del Monte, Eldoret and Busia, Regional Centres.
The economic hubs are additionally expected to incubate export quality assurance and packaging as well as the roll-out of electric boda bodas with the ancillary infrastructure to support eMobility.
President William Ruto and his Trade CS Moses Kuria have been pushing for the expansion of Kenya’s manufacturing sector and the investment will help the fulfilment of promises by the government to create jobs and spur the adoption of electric boda bodas.
Debt-free financing
The significance of the Sh420 billion funding is that the money will be availed by the investor debt-free, meaning that AFREXIM Bank will own the investments.
This is a milestone as the government seeks to limit the amount of money borrowed from financial institutions and international lenders.
In June, CS Kuria struck a deal to build a manufacturing firm in the Dongo Kundu Special Economic Zone in Mombasa, Kenya, as part of a Sh39 billion investment by the Belarusian Potash Company.
The deal is intended to boost President William Ruto's efforts to lower living costs by revitalizing the agricultural sector.
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