Shahbal secures Sh12 Billion DP World SEZ deal

 Mohammed Akoojee, CEO and Managing Director of DP World Africa, and Suleiman Shahbal. [Courtesy]

Businessman Suleiman Shahbal has secured a landmark Special Economic Zone (SEZ) investment agreement with global logistics giant DP World in a project expected to transform Mombasa into a major regional industrial and logistics hub.

The investment, valued at more than $100 million (Sh12 billion), is projected to create 7,972 direct jobs, with 67 companies already confirming participation before construction begins, signalling strong investor confidence.

The agreement between the Gulf Group of Companies and DP World is the culmination of a vision Shahbal has pursued for more than two decades, championing the establishment of a Special Economic Zone as a catalyst for industrial growth and economic transformation in Mombasa.

The SEZ will be developed on a 535-acre parcel of land in Jomvu Sub-County, formerly used as a Kenya Meat Commission cattle staging ground.

The land, currently leased from the County Government of Mombasa, will be converted into a modern industrial and logistics hub.

The project is expected to attract manufacturers, exporters, logistics firms, technology companies and other industrial investors, boosting production, increasing exports and strengthening Mombasa's position as a leading investment destination in East Africa.

A formal signing ceremony is scheduled for September 8 at State House, Nairobi, where DP World Chairman and Suleiman Shahbal are expected to sign the agreement in the presence of President William Ruto.

The project aligns with the government's agenda of promoting industrialisation, attracting foreign direct investment, creating employment and expanding exports through Special Economic Zones.

Business leaders have welcomed the investment, describing it as a game-changer for the Coast region.

Kenya National Chamber of Commerce and Industry (KNCCI) Mombasa Chapter Chairman Aboud Jamal said the project would unlock significant economic opportunities for Mombasa and beyond.

"We fully support investments of this magnitude because they have the potential to transform our local economy. The SEZ will not only attract more investors but also create thousands of jobs, stimulate trade, and position Mombasa as a leading regional logistics and manufacturing hub," said Jamal.

He added: "This is exactly the kind of strategic investment the private sector has been advocating for, and we look forward to working with all stakeholders to ensure its success."

Beyond the nearly 8,000 direct jobs, the SEZ is expected to generate opportunities for contractors, transporters, manufacturers, retailers, hospitality businesses and professional service providers, including engineers, architects, accountants, lawyers, ICT experts and financial consultants.

Analysts say the project's economic impact could extend well beyond Mombasa by increasing government revenue, boosting exports, improving logistics and attracting additional foreign direct investment into Kenya.