Inside Africa Economic Zone SEZ
The Africa Economic Zones (AEZ). Located approximately 40kms from Eldoret town, this SEZ was meant to be an industrial park and the first private SEZ in Kenya.
Background:
This SEZ spans 1,400 acres and though a JV between DL Group and a chinese firm by the name Guangdong New South Group ;thereby forming Africa Economic Zones Ltd.
DL Group is a company owned by David Langat who once gave a story behind what inspired the development. The idea was conceived in 2013 when he was driving through the streets of Eldoret and noticed the industrious efforts and enthusiasm of young people in the town and felt a strong urge to support them with an Industrial park that will transform their livelihoods and generate a decent income for them.
Ground breaking was done on July 2017 after the signing of the agreement was witnessed by President Uhuru Kenyatta on May 2017 while he was attending the Belt and Road Forum for International Cooperation in Beijing.
Operations:
Just like other SEZs,it enjoys all the incentives that come with being one.
The developer is the SPV by the name Africa Economic Zones Ltd. who has been working on enabling infrastructure (roads, sewerage, water) in coordination with Uasin Gishu county planning.
AEZ has pursued manufacturing/processing anchors (agro-processing, textiles, footwear, machinery) via JV arrangements with Chinese manufacturers; that process includes preferential package talks, land leases and phased plot handovers.
has been pitched as an integrated industrial / value-chain hub for agro-processing, manufacturing, business parks and technology/science precincts thereby leveraging Eldoret’s location on the Northern Corridor to serve western Kenya and regional markets (Uganda, Rwanda, South Sudan)
Development Status:
Development is to happen in 3 phases:
- AEZ Pearl river – spanning 700 acres and to be used for agri-processing, textiles, electronics, chemicals and manufacturing. The infrastructure development still ongoing.
- Science and Tech Hub – spanning about 90 acres
- Recreational zone – the zone will consist of a stadium, 18-hole golf course and a residential zone of three and four bedroom apartments. The zone will also include an incubation center for university students and a world-class Olympia City.
USD 2 billion is what is to be spent in the initial stages as the project expected to significantly promote cotton and cereal farmers and drive development. Once operational, the production output of the project is projected to reach USD 3 billion annually.
The project saw early momentum (2017–2019) but later faced delays tied to policy clarity and utilities. It was Expected to create more than 40,000 direct jobs and another 150,000 indirect jobs when fully established.
Conclusion:
Well, not much of onboarding has happened here but the intention of highlighting this SEZ was to illustrate a model driven by private capital and joint ventures, with flexibility in structuring investor packages.
Its implementation has been constrained by phased infrastructure rollout, slow policy alignment, and delays in securing anchor tenants at scale. The long-term viability of AEZ will depend on accelerated delivery of on-site infrastructure, clarity on investor incentives and active integration into regional value chains. Core enabling works are ongoing, but the zone is yet to achieve large-scale operationalization and host a critical mass of enterprises.
As the key driver of industrial growth, manufacturing within SEZs has a ripple effect across the economy, creating jobs for our youth and positioning Kenya as a regional powerhouse.
Dr. Langat, Chairman of ASEZ
For more information, reach out to us via info@rickfes.co.ke
At Rickfes Construction Ltd, we are keen to receive and facilitate investors; local or international; seeking to establish their developments into this SEZ. Our role is to be your development partner, liaison and local representative on the ground while in setting up in this SEZ.
