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KCB, Afreximbank in Sh103bn Centum’s industrial park financing
Kenya Commercial bank (KCB) Group CEO Paul Russo makes his remarks during the banks Financial Year (FY) 2024 Results announcement at Radisson Blu Hotel on March 12, 2025.
Photo credit: Francis Nderitu | Nation Media Group
Centum Investment’s Special Economic Zone (SEZ) will benefit from $800 million (Sh103.34 billion) in financing from KCB Group and the pan-African multilateral lender African Export-Import Bank (Afreximbank), giving fresh impetus to one of the Coast’s flagship industrial parks.
The financing targets businesses setting up shop at the 2,000-acre Vipingo SEZ in Kilifi County, promoted by Centum.
Over 60 percent of the funding, $500 million (Sh64.6 billion), will come from Afreximbank, a major financier of ARISE IIP, Centum’s joint partner in the SEZ.
As in other African markets where ARISE has developed zones, the pan-African developer will build core infrastructure within the industrial park.
KCB Group says its $300 million (Sh38.7 billion) will largely fund trade-facilitation support, with prospective investors benefiting from competitive financing solutions to establish operations within the SEZ. The focus, KCB said, will be on manufacturing, agro-processing, logistics and value-addition enterprises.
“We are delighted to elevate Vipingo SEZ as a gateway to transforming, creating and sustaining an environment in which export-oriented industries can thrive, by leveraging economies of scale, shared infrastructure and access to global markets,” said KCB chief executive Paul Russo during the signing of a memorandum of understanding between the lender and Afreximbank.
On its part, Afreximbank’s Managing Director, Export Development, Oluranti Doherty, noted the financier's mandate of promoting and expanding African trade, adding that the partnership with KCB will further this goal.
"Special Economic Zones are powerful engines for industrialisation, export growth and economic diversification. Through this financing framework, we will not only enable enterprises to scale but also support the creation of sustainable supply chains that uplift local communities and drive regional integration," she said.
Vipingo was granted SEZ status by the Ministry of Investments, Trade and Industry on November 29, 2024, cementing the coast region’s role as a hub for zones intended to drive growth through exports and job creation. Kenya now has about 39 licensed SEZs, with 10 located within the coastal economic bloc.
SEZs are designated areas that offer unique economic incentives and distinct regulations to attract foreign and domestic investments.
Enterprises operating in Kenya’s SEZs enjoy a raft of incentives, including reduced corporate tax rates (10 percent for the first 10 years and 15 percent for the next 10 years), 100 percent investment deductions for machinery and buildings, exemptions from VAT or import duties on qualifying goods and lower withholding tax rates on payments to non-residents.
Under the Finance Act, 2025, sweeteners include the exemption from capital gains tax on gains arising from the transfer of property within an SEZ by licensed SEZ developers, operators or enterprises.
