KCB Group and the African Export-Import Bank (Afreximbank) are partnering to inject a combined $800 million in financing to operationalize the Vipingo Special Economic Zone (SEZ), a major industrial project in Kenya’s Kilifi County. The deal, announced on September 16th during an investment forum, is designed to provide the financial muscle needed to attract companies to the developing hub.
Under the terms of the new memorandum of understanding, Afreximbank has committed $500 million, while KCB Group will provide $300 million. This capital is not for building the zone itself but will be used to offer financial and trade support directly to investors looking to set up operations within it. The focus is on attracting businesses in manufacturing, agro-processing, logistics, and other value-addition enterprises.
Prospective investors will be able to access a suite of financial products, including working capital facilities, project and trade financing, guarantees, and advisory support. The goal is to make it easier for both local and international companies to establish a foothold in one of Kenya’s flagship economic projects.
This funding is part of a much larger financial strategy for Kenya by Afreximbank. The pan-African bank’s $500 million commitment falls under its $3 Billion Country Programme for Kenya, which was signed in May 2023. That broader program is also intended to support other major industrial parks, including those in Naivasha and Dongo Kundu.
Afreximbank had previously disbursed $40 million to facilitate the initial development of the Vipingo SEZ infrastructure. The new, larger tranche of funding is specifically earmarked to support the individual companies that will populate the zone.
The agreement was formalized at a signing ceremony in Vipingo, attended by key figures from the participating organizations. Paul Russo, CEO of KCB Group, signed for the bank, alongside Ms. Oluranti Doherty, Afreximbank’s Managing Director for Export Development, and George Olaka, CEO of Arise IIP-Kenya, the company managing the SEZ. The ceremony was witnessed by Afreximbank President Prof. Benedict Oramah and Arise IIP Founder and CEO Gagan Gupta.
Discover more from Techish Kenya
Subscribe to get the latest posts sent to your email.
