Shot in the arm for Athi River EPZ as Chinese firms splash Sh20b on industrial park

Chinese investors have launched a multi-billion-shilling industrial park in the Export Processing Zone (EPZ).

Two Chinese companies are investing Sh20 billion in the Sino-African Incubation Park, which will be located in Athi River.

The investment, a joint venture between CIFAL International Ltd and China International Investment, will create a 200,000-square metre (m2) industrial park inside the 60-acre EPZ grounds.

Speaking during the launch, CIFAL International Managing Director Anna Tao said construction of the project will be undertaken by Qingjian International Group Ltd in four phases over the next three years.

The initial phase will be an investment of an estimated Sh500 million for a 500m2 promotion centre and a 10,000m2 industrial park.

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The incubation park will support African companies in technology, manufacturing and production and provide value-added services to help them export their products to global markets.

It will also have an entrepreneurial hub to support women and youth in setting up businesses.

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“From investment, construction, operations, industrial incubator, trade platform services, equity investment and other projects, the Sino-African Incubation Park will be a solid bridge to connect Sino-African industries and introduce competitive edge of industries in Kenya,” said Ms Tao.

“The incubation park will also support local industries with technology, product supply and other capacity building.”

The development comes hot on the heels of another Sh10 billion investment by other Chinese investors who are setting up a construction material supermarket.

The supermarket will sit on 29.6 acres in Athi River, Machakos County and is funded by renowned construction company China Wu Yi. It is set for completion by June next year and seeks to cash in on Kenya’s booming building industry.

Mr Tao said the industrial park will provide a one-stop shop for business services such as exhibitions, offices, warehouses as well as public e-commerce office services.

In the first phase, the park will launch industries in medical, chemical, cosmetics, foodstuff, machinery, building materials, agricultural products, office stationery, paper, textile, auto parts, shoes, hats, furniture and household appliances.

“This will be an integrated park with the functions of display, wholesale, distribution, logistics and warehousing,” she said.

Industry, Trade and Co-operatives Cabinet Secretary Adan Mohammed said the investment is a bold step by the Chinese, adding that they would enjoy full benefits of the EPZs with a higher return on investment.

“As a country, we are open for businesses across the world and we are inviting more investors to come and set up their businesses in Kenya. Many people will enjoy the manufacturing that targets export market,” said the CS.

EPZ Chief Executive Fanuel Kidenda said the Sh20 billion investment is a major boost to the economy and the EPZ, which so far, has investments worth Sh730 billion.

The industrial park is also expected to provide enterprises with supporting resources and services such as logistics and distribution, product or technology testing, catering staff meals, office supplies, marketing and advertising materials.