Economy

Kenya set for first free trade zone in Mombasa

port

Port of Mombasa. The Cabinet has approved the establishment of the country's first Free Trade Zone in Mombasa. Goods entering the zone will be duty free. Photo/FILE

The Cabinet Friday approved the establishment of a free trade zone in Mombasa in what is expected to establish Kenya as a regional trade power-house.

It will be Kenya’s first free port and is expected to promote and strengthen trade within the East, Central and Southern Africa by allowing trading of goods within the zone without paying duty.

The Cabinet decision chaired by President Uhuru Kenyatta will raise Mombasa’s profile as the gateway to the region and will encourage businesses to set up operations in Kenya.

“This will be the first free trade zone in East Africa. It will open up a ready market for the wider African continent and thus spur numerous economic activities for the country,” the Cabinet said in a memo.

The project is expected to be ready by 2015 and is being implemented by the ministry of Industrialisation and Enterprise Development which has already opened the search for consultants to carry out a feasibility study on the free trade zone.

READ: Kenya seeks bids in plans to create free trading zone

The envisioned free trading area will enable goods to enter into the zone duty free where traders from Kenya and the region can purchase them without having to travel to traditional destinations like Dubai, China and Japan.

It is expected to start operations with motor vehicles, household goods and construction materials amongst others.

The zone is expected to raise the country’s trade volumes as well as generate jobs.

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