The Government has acquired 1,000 acres of land for the Naivasha Industrial Park.
Chief Economist, State Department for Industrialisation, Anthony Mugane says the masterplan is being developed as the Government sources for park developers.
The plan to build the industrial park last year received a major boost after Parliament allocated Sh3.4 billion to buy land.
Vision 2030 flagship projects in the manufacturing sector include the development of at least five SME industrial parks and special economic zones in key urban centres and industrial and manufacturing zones.
But inadequate budgetary allocation and unavailability of industrial land, limited access to financial services for industrial development, were cited among challenges facing implementation of vision 2030 flagship projects in manufacturing.
But Mr Mugane who was representing Principal Secretary State Department for Industrialisation, Betty Maina, assured players and technocrats at Whitesands Beach Resort in Mombasa that Vision 2030 flagship projects in the manufacturing sector were on course.
He was giving the status of projects in achieving the Big 4 agenda in manufacturing, challenges experienced and strategic areas of focus at a retreat for implementing agencies.
“Other challenges include high costs of acquiring land, steep cost and quality of energy and high operational costs, unfavourable business environment, climate change and limited access to markets,” he said.
Other flagship projects in the sector include transforming the Kenya Industrial Research and Development Institute (Kirdi) into world class research institution, development of Integrated iron and mini steel mills, skills developments for technical human resource for manufacturing sector, policy, legal and institutional reforms to spur manufacturing sector.
“The masterplan for Dongo Kundu Special Economic Zone (SEZ) in Mombasa was finalised, 220kv power line from Mariakani, construction of Berth 1 and access road from the Southern by-pass to Dongo Kundu will be funded by the Japanese government, supply of water from Tiwi to SEZ, drainage system within the park and construction of free port /FTZ next to berth 1 will be done by a grant from Japan,” the PS said.
MPs allocated Sh3.4bn for Naivasha industry park land
The plan to build an industrial park in Naivasha has received a major boost after Parliament allocated Sh3.4 billion to cater for acquisition of land in its latest public expenditure reorganisation.
It will, however, be interesting to see how much the State offers to entice property owners in an area worst hit by unrestrained subdivision of land.
Failure to secure land had previously delayed the building of the park initially floated as a Nakuru County project. Nakuru County has since banned subdivision of plots that are less than five acres.
The Industrial Park to be located in Enosupukia, together with a leather Industrial park in Kenanie and modernisation of Rivatex have been flagged off among the priority areas.
President Uhuru Kenyatta has sought to raise the GDP contribution of manufacturing — which reached 8.4 per cent last year — to 15 per cent by the time he leaves office in five years.
The supplementary budget tabled in Parliament last week, however, seeks to cut Sh285 million from the Kenanie Leather Industrial park budget to be used in the construction of constituency industrial development centres under the government’s standards and business incubation programme.
“Considering that we are in the last quarter of the financial year, the departments are not likely to absorb the funds as early proposed,” committee on trade, industry and cooperatives observe.
“The Kenanie Leather Park under the economic stimulus project has been dragging for a long time and needs to be expedited to accelerate industrial growth,” notes the committee.
The production units of the park will be linked to markets by the standard gauge railway (SGR) line.