[SIZE=6]Investors seek to put billions in 100 economic zones[/SIZE]
SUNDAY, FEBRUARY 18, 2018 22:00
BY JAMES KARIUKI https://www.businessdailyafrica.com/image/view/-/4309972/medRes/1798452/-/maxw/960/-/ydbrf8z/-/cs.jpg
Local and foreign investors are seeking licences to put up 100 Special Economic Zones (SEZ) across the country. Industrialisation secretary Adan Mohamed said the applications are being scrutinised with priority given to those eyeing use of locally produced raw materials to process products for export. During a one-day forum convened by projects and infrastructure specialist firm, IKM Advocates and the International Projects Finance Association, Mr Mohamed said only quality SEZ investments that can generate sustainable jobs, impart employable skills and create wealth for local communities through purchase of locally produced raw materials will benefit.
“Apart from Tatu City and Africa Economic Zones, Naivasha as well will be built enabling manufacturing facilities enjoy access to cheap geothermal power and cheap Standard Gauge Railway transport to Mombasa port,” he said.
Dongo Kundu SEZ is also under development at the coast and will occupy 1,500 hectares. The forum was told a one-stop shop office within SEZ facilities or at the Special Economic Zones Authority (SEZA) headquarters would be established enabling SEZ operators, developers and enterprises to obtain licences with ease.
“The SEZ Act grants incentives that can only be realised once we have operational laws exempting investors from some tax obligations such as payment of stamp duty. All stakeholders should be engaged in formulating the policies that align the incentives to the tax laws,” said IKM managing partner James Kamau.
Mexico’s Federal Authority for SEZ Development executive secretary Enrique Antonio Huesca Fernandez called for strengthening of the SEZ institutional framework and a flexible governance model that allowed investors to set up shop faster.
Remember in the SEZ master plan, at least 1 SEZ in each county. The next step is to allocate land for investors to lease for 99 years but not own it. However before that they will be vetted to make sure they have the finances, capacity to setup and operate as designated.
Lakini spear let’s be real. Are we in a capacity to repay our loan obligations? Nimeona Treasury is seeking another Erurobond, maybe to pay off the current loans due any time soon as we buy time for more loans… will it be a pepertual cycle of borrow → borrow to pay → borrow some more → borrow to pay ?
Yes we are. Last year we spent 600 billion on loans. Contrary to speculations 400 billion were long and medium term loans some taken up as far back as 2007. 200 billion was short term loans due locally from T bills and bonds. What I would wish is we reschedule our debt payments to spread them out from short term to long term. We are biting the bullet to borrow and build in the hope that the economic growth will enable more taxes to repay the loans and prosper. However going forward most projects will be by PPP instead of financing from Treasury. On a good note our tax collections have kept on increasing. This year we are up 8% from previous year despite the extended elections period from Aug-Dec. However the tax collection didn’t meet the target of 10% more. Its a delicate balance but not alarming as its being put across. What’s interesting is that Treasury made it clear it would borrow 300-500 billion abroad through multilateral loans from development partners or floatation in the budget. Now if you read the papers prospective then you would think its a secret. The conditions for a bond now is great as the interest and take up is high. Kenya also has 100% payment history and good economic prospects after we successfully negotiated the elections. Right now the new KRA scanners are sealing smuggling loopholes and we are collecting 150 million more a day at the port. More such moves will make a lot of difference.
why is our media hellbent on portraying Kenya as a risk country for investors. All you here is questions of unsustainability but no one gives brief analysis like u did. So funny indeed