Nakuru County Launches Initiatives to Boost Investment and Industrial Growth

NAKURU – The County Government of Nakuru has announced a comprehensive series of initiatives aimed at enhancing the region’s appeal to investors, with a special focus on improving the local business environment through tax reforms and infrastructure development. This move is part of a broader strategy to stimulate economic growth and job creation in one of Kenya’s key agricultural and industrial hubs.

According to Kenya News Agency, the county has embarked on a significant overhaul of its tax regime, including the harmonization of fees and the elimination of non-tariff barriers, to facilitate smoother intra-county and inter-county trade. This approach is designed to lower the operational costs for businesses and, consequently, reduce prices for consumers.

A key component of these initiatives is the development of the Naivasha Special Economic Zone (SEZ), into which the county government has invested over Shs 2 billion for infrastructure projects, including roads, drainage systems, and water supply. The SEZ, located in Mai-Mahiu, has already attracted 11 investors with plans to invest more than Shs 50 billion in the region. These investments are expected to bolster Nakuru’s position as a central economic player in the Rift Valley, particularly in the agricultural sector, where the county excels in the production of potatoes, carrots, milk, and vegetables.

Governor Kihika highlighted the construction of a Sh154 million state-of-the-art hospital and noted the formation of a technical team to guide investment and marketing efforts for the SEZ, in collaboration with the Special Economic Zone Authority (SEZA). The SEZ’s development is further supported by the recent inauguration of a 90 MVA power plant in Naivasha by President William Ruto, aimed at providing clean energy at reduced rates to industries within the zone.

The initiatives also include efforts to streamline licensing processes and reduce the cost of doing business in Nakuru, with the aim of making the county a more attractive destination for both local and foreign direct investment (FDI). The SEZ offers competitive advantages such as access to cheaper geothermal power and lower corporate taxes, with rates set at 10 percent for the first ten years of operation.

Governor Kihika emphasized the county’s commitment to public-private partnerships and smart planning as essential tools for driving Nakuru’s transformation into a middle-income economy. The SEZ alone is expected to create over 3,000 direct jobs and 30,000 indirect jobs, contributing significantly to Kenya’s economy by exporting 70 percent of its output.

These developments are part of Kenya’s broader strategy to enhance its industrial and economic landscape through the establishment of Special Economic Zones across the country, aimed at creating jobs and boosting exports to support economic growth by 2030.