Mwakwere says busy Parliament to blame for delay in SEZs

By Luke Anami

A busy Parliament schedule is to blame for the delayed enactment of the Special Economic Zones Bill, Trade Minister, Chirau Mwakwere, has said.

Speaking during the sixth session of joint trade committee between Kenya and India, Mwakwere said it was becoming difficult to tell when the Bill to convert the Export Processing Zones into Special Economic Zones (SEZs) would be tabled in Parliament.

"It is difficult to tell when this would happen as Parliament’s calendar looks tight," said Mwakwere during the opening of bilateral talks between the two countries.

Since the re-opening of the 10th Parliament, the implementation of the new constitution has taken centre-stage, relegating a number of Bills in the waiting list, among them SEZs, which was validated this May.

The Bill has since been tabled before the Cabinet but has not been included in the Parliament’s "busy" calendar.

Once implemented, the economic zones will open up the EPZs products to local markets contrary to the current situation where goods manufactured are only strictly meant for exports.

Expanded and modernised

The trade minister said EPZs would be expanded and modernised, with improvement on tax exemptions and holidays top on the agenda. India is expected to play a significant role in the setting up of the SEZs along the Mombasa- Nairobi corridor and Kisumu once the process is in place.

At the conference, Mr Mwakwere cited the rising costs of energy as a major impediment to business in Kenya.

"While the unit cost of power in Kenya is 15 cents per unit cost, Egypt is four cents and India is three cents," he said.

He called on the India trade delegation to invest more in Kenya as there is an improved business climate brought about by the new constitution.