By Kurian Musa 

Kenya: The Cabinet has approved the establishment of Free Trade Zone in Mombasa.

The move sets the stage for the Ministry of Industrialisation to roll out the country’s first Free Trade Zone where goods will be duty free.

“This will be the first free trade zone in the region. It will spur economic opportunities for the country and open up trade in the region,” a statement from the Cabinet said Thursday.

The Cabinet further approved the Budget Policy Statement, the Division of Revenue Bill, and the County Allocation of Revenue Bill.  

Approval

Cabinet Secretary for Treasury Henry Rotich is required to present the documents to Parliament latest by Saturday, according to the set timelines.

Parliament will have to look into the policy statement and the other two documents for approval.

 The policy statement is a summary of the state of the economy where Cabinet noted that the global economic prospects are improving with the US economy registering 6 per cent growth.  

 Regionally, sub-Saharan economies are also doing well, according to the document. It is thus expected that the country will have a stable macro-economic environment.

According to the document, the Government targets to achieve a higher annual growth rate through creation of a pleasant business environment for employment.

The policy paper has outlined ways to improve governance in medical supplies, free tuition in schools, public works, National Police Service, revenue administration, procurement, immigration and lands.

Housing units

 Another priority area for the Government is security. The policy paper recognises the key role security plays in national development. 

The Government will construct at least 18,000 housing and building units for the National Police Service, partly through private-public-partnership framework.  

 This initiative will be expanded in the medium-term to cover the Kenya Defence Forces and the Prisons Department.

The state will lease at least 1,500 motor vehicles and three aircraft and other security equipment per year to boost patrols.