EPZA gives notice to reclaim unused space

Workers at an Export Processing Zone (EPZ) in Athi River. FILE PHOTO | NMG

Forty-one manufacturers allocated government space at Athi River export processing zone have a month to start construction or lose the land.

An Export Processing Zones Authority (EPZA) notice said upon expiry of the grace period for the firms that have failed to develop them in the last two years, a lease and licence termination process will kick off, with the freed land reallocated.

“Unless the named companies commence development within 30 days from the date of this notice, EPZA shall start the process of terminating the leases as well as their licences,” said the authority.

EPZA said new land allotees whose two-year deadlines have not passed have 14 days to submit detailed programmes of how they intend to implement projects.

The move comes hardly two weeks after EPZA invited private and public warehouse developers to lease properties to them for re-allocation to export-bound manufacturers and processors.

EPZA said it was eyeing fully developed but vacant warehouses in Athi River, Eldoret, Kiambu, Kisumu, Machakos, Mombasa, Mtwapa, Nairobi, Nakuru, Nyeri, Thika or Voi for 30-year leases.

“The warehouses should be connected to a three-phase industrial electricity supply, a mains water supply, a wastewater line and the lettable spaces should be 300,000 square feet or more, while its internal and external access roads should be paved,” it said adding the facilities should be located within two kilometres of a densely populated area.

EPZA has in the past decried lack of industrial space saying it hampers planned expansion of 50 apparel factories that have exhausted available space.

The invitation follows increasing interest among firms intending to utilise locally produced raw materials.

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