Chinese Industrialists Seek to Invest Ksh200 billion in Kenya
Kenya has huge investment opportunities in various sectors that it can tap into to boost its comparative advantage, Industry, Investment and Trade Cabinet Secretary (CS) Adan Mohamed has said. These, he noted, included agro-processing, textiles, leather, construction services and materials, oil, gas, mining and IT related sectors
The CS was addressing visiting Chinese investors from the KEDA Clean Energy Company who are in the country seeking attractive opportunities. They want to invest between $200 million (Ksh20 billion) to $2 billion (Ksh200).
The cabinet secretary told the Chinese delegation last week that the country was the fifth largest economy south of the Sahara with educated, qualified and skilled youthful labour force. “The country boasts of vast agricultural resources besides having a more advanced infrastructure and IT capabilities equal to none among its peers in the region,” he noted.
Mr Adan explained that the Government has created a favourable and enabling environment to attract investments locally, regionally and globally. These include tax incentives for export based industries that could see investors enjoy specific tax holidays.
He encouraged investors to consider setting up infrastructure in special economic zones along the Standard Gauge Railway (SGR) from Mombasa to Nairobi, adding that the Government is availing land in these zones for investment.
He said the country requires more investments in the textile and leather sectors which are a major growth drivers in industrial exports. “The labour costs are relatively cheaper compared to manufacturing in Asia,” he said adding that Kenya’s preferential access to global markets had created a cost advantage to buyers in pursuit of a diversified sourcing base.
“The country is expanding its power supply from 2,500 to 10,000 megawatts and production of the remaining 7,500mw of clean energy is another investment option you could consider,” he told the seven member delegation.
The Chairman of the Company Mr Bian Cheng who was also leader of the delegation told the CS that they had already acquired 60 acres in Kajiado along the Namanga highway build a brick and tile factory.
“We want to set up a manufacturing plant to produce construction equipment for use in the country,” Mr Cheng told the CS adding that they had already met the necessary environmental standards requirements for the plant in Kajiado.
Mr Cheng said the factory will give locals 350 direct jobs with plans underway to support some local development programmes.
The CS who was accompanied by the Ministry’s acting Director, Medium and large Industries Charles Mahinda told the delegation that Kenya is seeking duty free access for its products in the Chinese market.