This archive report was first published on 22 October 2019.
As the country grapples with the financial implications of the Standard Gauge Railway (SGR) project, it is imperative that the Government takes swift action to ease the burden of debt repayment. Published on October 22, 2019, a report highlighted the need for the Government to speed up the construction of a Special Economic Zone (EPZ) in Mombasa, complemented with a duty-free-zone, to lure importers from neighboring countries.
The EPZ, benchmarked with those in Dubai, would have a multiplier effect on the Coast region's economy, while the SGR would greatly benefit from additional freight to neighboring landlocked countries such as Uganda, South Sudan, Rwanda, and the Democratic Republic of the Congo (DRC). A rapid establishment of an industrial park in Naivasha and the granting of land to neighboring countries would give importers the option of picking their goods from inland container depots in either Nairobi or Naivasha.
Furthermore, the Government could consider investing in anchor industries that would attract more investors to the facilities built with public funds. The African Growth Opportunity Act (Agoa) in the US offers plenty of goods that can be produced and exported to that market. Indeed, reports that African countries, Kenya included, export only a measly two percent of the goods they can sell to the Americans provide food for thought for a continent that spends billions looking for markets.
Additionally, the Government should implement measures that will attract local and regional importers to opt for SGR over road transport. This includes a drastic reduction of fees charged by Kenya Ports Authority (KPA) in total disregard of the fact that Dar-es-Salaam has equally modernized its port and has rolled out a charm offensive to lure importers from Uganda, Rwanda, and DRC.
