Government, IFC Chart New Path for SEZ Reform and Investment Promotion
Nairobi, Kenya – May 19, 2025
In a strategic move to deepen economic reforms and unlock greater investment flows, the Principal Secretary for the State Department for Investment Promotion, Mr. Abubakar Hassan Abubakar convened a consultative meeting with senior representatives from the International Finance Corporation (IFC), the Export Processing Zones Authority (EPZA) and the Special Economic Zones Authority (SEZA).
The meeting focused on accelerating the merger of EPZA and SEZA, enhancing the legal and regulatory environment and leveraging IFC’s support to promote Kenya as a competitive investment destination.
During the meeting a comprehensive three-year support program by IFC, which aimed to facilitate key reforms in Kenya’s special economic zones was endorsed. As part of this collaboration, the IFC is set to provide technical expertise, legal support, investor engagement services and capacity development for both the public and private stakeholders.
The meeting also reviewed the progress achieved on the long-anticipated merger between EPZA and SEZA whose officials’ confirmed finalization of all preparatory work. The draft bill formalizing the merger is in its final stages and stakeholders are optimistic that legislative processes will proceed swiftly. The Principal Secretary directed that expert opinion from the IFC be urgently incorporated to inform the Ministry’s performance contract with the Cabinet Secretary, particularly with respect to adopting global best practices in zone management and governance.
Kenya is positioning its special economic zones as a central pillar of its industrialization and job creation agenda. The merger of EPZA and SEZA is expected to eliminate duplication, streamline service delivery and improve investor confidence. By harmonizing zone-specific incentives and enhancing regulatory clarity, the government aims to create a unified and investor-friendly ecosystem.
The PS emphasized the urgency of these reforms, noting that international best practice and a harmonized incentive framework will be critical to attracting high-quality investments. He proposed a benchmarking study of successful SEZ models in countries such as Malaysia to guide implementation and ensure Kenya remains globally competitive. The IFC outlined a robust support package set to begin immediately.
Key areas of focus include: legal support through a local legal expert; development of targeted investment pitch decks; setting investor attraction targets; conducting investment roadshows and promotional campaigns; Benchmarking and undertaking best practice analysis of successful SEZ operations globally; along with stakeholder consultations and knowledge sharing under the AGII framework.
Capacity building will be provided to both government and private sector actors through training programs, advisory services and technical workshops. In addition, a green expert will support alignment of SEZ development with Kenya’s climate and environmental goals.
The State Department for Investment Promotion is expected to finalize and sign the IFC support agreement in the coming weeks. Meanwhile, preparatory activities including legal drafting, performance contract alignment and stakeholder sensitization will continue. With this partnership, Kenya reaffirms its commitment to transformative economic zones and strategic investment promotion, with the full backing of global development partner.