EPZA Newsletter

NEWSLETTER H.E Dr. William Ruto, PhD visit to Square Pharmaceuticals Kenya EPZ Limited at EPZ Athi River. The President was received by Cabinet Secretaries Rebecca Miano and S u s a n N a k h u m i c h a , M r. R i c h a r d Cheruiyot, EPZA Board Chairman and Mr. Hussein Adan Mohamed, Ag. CEO, EPZA among other members of senior management from EPZA and Square.

INSIDE꞉

First fabricated industrial warehouse project at EPZ Athi River

+254 709 537000

Fairoils commissions additional oil production line as T3 opens its third PET packaging aggregation center info@epzakenya.com

www.epzakenya.com

How the EPZA facilitates export oriented investments

@epzakenya

From the CEO’s Desk

Happy New Year!

A

s reiterated in the last quarterly E–Newsletter, EPZA has an enormous role to play towards the achievement of the Bottom‑Up Economic Transformation Agenda (BETA) through the EPZ program.

One of the ways that this will be achieved is by sensitizing the public on the EPZ Program particularly its benefits to the economy and the available investment opportunities.

We recognize that communication and particularly through publishing of such relevant information to share with our different audiences and stakeholders is key.

As one of the Investment Promotion State Agencies under the State Department for Investment Promotion in the Ministry of Investments, Trade and Industry (MITI), +254 709 537000

EPZA is at the forefront in promoting export‑oriented investments in Kenya and creating a favorable environment for the same.

During the October – December 2023 quarter, we were privileged to host H.E President William Ruto, PhD at Square Pharmaceuticals EPZ Limited, the third but also largest pharma plant in EPZ Athi River. The visit was part of the Ministry of Health's week‑long campaign on advancing universal health care in Kenya.

The quarter also registered the gazettement of additional Zones further increasing EPZ program's footprint countrywide.

I note that the Authority was privileged to hold talks with a variety of stakeholders in different local and info@epzakenya.com

www.epzakenya.com

international platforms. These engagements are expected to boost investment in the EPZ program thereby creating the much‑needed employment opportunities for our fellow brothers and sisters while at the same time contributing to the growth of Kenya's gross domestic product.

It is delightful that EPZA continues receiving increased investment enquiries in a variety of sectors and believe that the Authority is on the right path towards the achievement of our country's BETA priorities. EPZA is indeed your trade and investment partner. Best wishes in the New Year.

Mr. Hussein Adan Mohamed, MBS. Ag. CEO, EPZA

@epzakenya

1

MITI embarks on a transformative journey with a renewed sense of purpose and commitment The Ministry of Investments, Trade and Industry (MITI) has identified 10 strategic deliverables informed by the Bottom‑Up Transformation Agenda priorities aimed at promoting;

1. The facilitation of domestic and foreign investments,

2. The development and management of Special Economic Zones, Export Processing Zones, Industrial Parks and County Aggregation and Industrial Parks (CAIPs),

3. Exports and enhancing market access for Kenyan goods and services,

4. Value‑addition and agro‑processing, with special emphasis on textiles and leather,

5. Quality standards and combat counterfeiting,

6. The development of iron and steel industry, automotive, pharmaceuticals, building and construction materials, paper and paper products and machining and parts manufacturing 7. The implementation of the One – Stop Investment Center, local and export warehouses

8. The mobilization of resources for the implementation of initiatives, including roll out of Nairobi International Finance Center and support for Kenya Development Corporation,

9. Strategy for industrial/manufacturing projects financing; and 10. The implementation of local content policy including management of exports and investment promotion levy.

“Cognizant of the fact that the Executive Order No.2 of 2023, places our Ministry at the forefront of the much‑desired economic recovery, growth and transformation in investments, trade and industry…”

said CS Rebecca Miano.

It's the CS's desire to build a more cohesive team at the Ministry, break the silo mentality among staff members while establishing a working One‑Ministry Approach in its service delivery.

She further stated that moving forward, MITI shall work towards improving efficiency in all its Semi‑Autonomous Government Agencies (SAGAs) guided by the practice of thriftiness as a core principle.

Still on efficiency, CS Miano strongly encourages a work attitude guided by timeliness in the delivery of results right across the Ministry and all its SAGAs.

Kisumu County welcomes its second EPZ

T

he number of zones has crossed the

owing to its richness and availability of raw

were gazetted at the end of

Categorized under Kenya's blue economy

100th mark as additional ones located

in Kisumu, Muranga and Kilifi counties

December 2023.

Hazina Ya Ziwa EPZ Limited located in Kogony area becomes the second zone in Kisumu County.

It neighbors Dada EPZ Limited, the first –

locally female owned apparel manufacturer in Western Kenya.

This further signifies that export oriented investors are expanding their investment

footprint to the Western Kenya region

+254 709 537000

counties respectively. The blue economy

materials and labor.

sector holds great potential for Kenya's

sector, Hazina Ya Ziwa will process dried

and living within the areas the projects

Nile perch maws, fish skins, dried silver

cyprinid; popularly known as omena as well as sea cucumbers. The company is also

keen on diversifying into macadamia nuts processing macadamia sourced from the

larger Western Kenya region.

Hazina becomes the third blue economy

investment in the EPZ program after Kenya Tropical Sea Life EPZ Limited and Huawen

Food Kenya EPZ located in Kilifi and Kwale info@epzakenya.com

www.epzakenya.com

economy with a possibility of uplifting the

livelihoods of various communities working operate from.

Dada EPZ which joined the EPZ program in 2020 has a capacity to manufacture up to 30,000 pieces for export.

The number of zones in Muranga and Kilifi counties now stands at four and 16 respectively.

@epzakenya

2

Fairoils commissions additional oil production line as T3 opens its third PET packaging aggregation center

A

First fabricated industrial warehouse project at EPZ Athi River

E

xport – oriented investors seeking to operate at EPZ Athi River can now access and lease modern and eco – friendly fabricated industrial spaces.

Modular Real Estate EPZ Limited has developed the industrial warehouses allowing investors a quick commencement of their projects.

The project with a combined industrial floor space of 4,306 square meters is composed of three warehouses supported by amenities.

As the company seeks to meet the rising demand for industrial space at EPZ Athi River, the fabricated warehouses further present an opportunity among real estate investors in the EPZ program to construct additional floor space especially for export – oriented manufacturers who would want to set up and operate in the program.

+254 709 537000

info@epzakenya.com

www.epzakenya.com

s the global demand for essential and vegetable oils surges, Fairoils EPZ Limited commissioned a new production line for processing sesame and moringa oils.

Fairoils, which processes over 30 essential and vegetable oils, says the new line is expected to greatly boost its production and export of the two oils.

The demand is fueled by people's growing health awareness on the benefits of the oils used mainly as compositions in biofuels, personal care, pharmaceuticals and food industries.

The commissioning ceremony held at the company's premises at EPZ Athi River was witnessed by Belgium Ambassador to Kenya, Peter Maddens, and Mr. Hussein Adan Mohamed, Ag. Chief Executive Officer, EPZA.

The company supports over 1000 small scale farmers and communities in Africa to produce raw materials for the processing of natural oils.

In Kenya, Fairoils supports farmers in Kwale, Laikipia Narok and Kiambu counties to enhance the development of backward linkages. This is one EPZ program's objectives thereby contributing to the achievement of Kenya's Bottom – Up Economic Agenda (BETA) priorities. @epzakenya

3

Production of plastic flakes

T3 EPZ Limited has opened its third PET plastic bottles packaging aggregation center as it seeks to increase the production of plastic flakes used in the manufacture of polyester textile yarn for export.

The center located along Kangundo road, is used for the collection of the raw materials, where they are compressed and packaged in bails for processing of the finished material at T3's modern plant located in EPZ Athi River.

The company's two other aggregation centers are located in Thika and Namanga towns. T3 plans to increase the centers to 12 in 2024 and 36 by 2026 from the current three.

The polyester textile yarn is manufactured for export to Belgium, United Arab Emirates, Saudi Arabia and Pakistan.

The project is part of T3's contribution to the recycling industry and environmental sustainability towards reduction of ocean plastics pollution.

+254 709 537000

info@epzakenya.com

www.epzakenya.com

@epzakenya

4

Picture Speak

Third BPO in the EPZ program

launched

B r a z i l A m b a s s a d o r t o Ke nya

familiarization tour to EPZ Athi River

+254 709 537000

info@epzakenya.com

www.epzakenya.com

@epzakenya

5

Nurturing N u r t u r italent n g t aat l eThe n t Great a t T hChepsaita e Great

Cross–country Chepsaita Cross–country Run Run

EPZA plants over 3,500 tree seedlings at Enosupukia Forest Block and EPZ Athi River

+254 709 537000

info@epzakenya.com

www.epzakenya.com

@epzakenya

6

A

Ms. Evelyne Chebet Sang

Ole Songare Mr. Munei Tago

info@epzakenya.com

Long–serving employees꞉ ‑ Mr. Benjamin Chesang

Mr. Joseph Mathanjuki Mararo +254 709 537000

Mr. Francis Nyaga,

‑ Mr. Aggrey Kadasia

‑ Mr. Simon Muturi

‑ Ms. Regina Waweru

‑ Ms. Nancy Kapsoot

www.epzakenya.com

@epzakenya

7

The Business Process Outsourcing (BPO) industry is one the numerous investment opportunities available under the EPZ program.

T

hree BPOs with a combined investment of Kshs. 1.3 billion operate in the program. These are, Sama AI located at Sameer Industrial Park in Nairobi County, an investment from the USA, ADEC Kenya Services EPZ Limited located at EPZ Athi River in Machakos County, an investment from Philippines and Majorel Kenya Solutions EPZ Limited in Mombasa County, an Irish & Belgian joint venture.

Other than its strategic location, Kenya is emerging as an attractive hub for BPOs driven by a combination of other factors. These include the availability of a skilled workforce, cost advantages, a favorable business environment including tax breaks and streamlined regulatory processes and a maturing BPO ecosystem.

Are you an investor in the BPO sector, interested in expanding your business in the EPZ program? Reach out to info@epzakenya.com

+254 709 537000

info@epzakenya.com

www.epzakenya.com

@epzakenya

8

EXPORT INVESTMENT IN KENYA

How the Export Processing Zones Authority facilitates export oriented investments

T

he Export Processing Zones Authority (EPZA) is an Investment Promotion Agency under the Ministry of Investments, Trade and Industry established for the promotion and facilitation of export‑oriented investments and the development of an enabling environment for such investments.

The mandate of EPZA is to꞉ ◦

◦

◦

Manage the EPZ program in Kenya on behalf of the Kenyan Government.

Develop all aspects of the EPZs with particular emphasis on the provision advice on the removal of impediments and creation of incentives for export‑oriented production.

Regulate and administer approved activities within the EPZs and to protect government revenue.

DID YOU KNOW?

Qualifications for an EPZ License

For businesses to operate under the EPZ program they must fit the following criteria꞉

An investor interested in doing business through the EPZ program can lease land or warehouse /industrial space to carry out their export oriented business.

◦ Export orientation. A company must have over 80% export sales outside East Africa Community partner states

◦ Must be a new investment in Kenya only

Land that is designated as an EPZ is referred to as a Zone and can be public or privately owned.

◦ Must operate in a gazetted EPZ.

There are various licenses and permits that are offered to companies that operate as EPZs as follows꞉

The Zones can be set up anywhere in Kenya.

There are over 100 zones countrywide

1.

• There is no restriction on the size of land.

2.

• The land will need to be gazetted as an EPZ by application to EPZA.

EPZ Zone Developer/Operator License for those engaged in developing infrastructure and buildings in new zones to be occupied by the EPZ enterprises

EPZ Enterprise License for companies directly involved in export‑oriented business activities. These include꞉ i. EPZ Manufacturing (or Processing) License

Talk to us to start your epz journey.

3.

ii. EPZ Export Services License for export related services including BPOs, brokerage, consultancy, repair and information services, but excluding commercial activities and financial services.

EPZ Commercial License for those engaged in activities that include bulk breaking, trading, re‑Labeling, grading, repackaging. This license does not enjoy the EPZ incentives and products retain the country of origin in their packaging.

Investment Opportunities

There are various investment opportunities available to investors in the EPZ program; including but not limited to Cotton, Textile & Apparel value chain, Business Process Outsourcing (BPO) and IT Enabled Services (ITES), Cold chain facilities (Horticulture, Floriculture, Fisheries, Meat Processing), Agro‑processing, Leather value chain, Transport & warehousing & distribution logistics and Warehouse leasing and much more.

Agro‑processing

It refers to activities that transform agricultural commodities into different forms through value addition.

This is the second most dominant sector in the program with an estimated 35% of EPZ enterprises and contributing to 24% of exports.

Agro‑processing activities include the export of fresh produce, nut processing, sisal processing, essential and edible oils, tea and coffee products.

Business Process Outsourcing (BPO)

Business Process Outsourcing (BPO) is a business practice in which an organization contracts an external service provider to perform an essential business function or task.

BPOs in the EPZ program operate under the Enterprise Service license to carry out business services on behalf of other companies. These services include support operations, data management, call centers, customer relationship management, payroll processing and Artificial Intelligence (AI).

Kenya is fast emerging as a regional hub for BPOs as investors take advantage of regional proximity, high quality skilled workforce and highspeed broadband connectivity.

+254 709 537000

info@epzakenya.com

www.epzakenya.com

Garment & Apparel sector

This sector entails the designing, cutting, stitching, assembling of fabric into finished garments or apparel for sale.

The garment sector remains the most d o m i n a n t w i t h i n t h e E P Z p ro g r a m constituting the highest number of direct employment, investment and total annual exports.

Despite the global disruptions in the value chains, the EPZ program has experienced increased investments and continued growth.

@epzakenya

9

Do you need any assistance with your next EXPORT‑ORIENTED investment?

Contact Us

+254 709 537000 +254 713 051172/3 +254 45 662000 Nairobi ‑ Namanga Road, Athi River, Kenya

Discover More

info@epzakenya.com

www.epzakenya.com

@epzakenya