Afreximbank, KCB seal Sh103 billion deal to operationalise Vipingo SEZ
Vipingo SEZ is one of Kenya’s flagship projects under the Special Economic Zones Authority (SEZA), envisioned as a catalyst for attracting investment and spurring regional development.
Regional lender Afreximbank and KCB Group have signed a landmark $800 million (Sh103.4 billion) agreement to operationalise the Vipingo Special Economic Zone (SEZ) in Kilifi County.
Under the agreement, Afreximbank will provide $500 million (Sh64.6 billion), while KCB Group will inject $300 million (Sh38.8 billion).
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Vipingo SEZ is one of Kenya’s flagship projects under the Special Economic Zones Authority (SEZA), envisioned as a catalyst for attracting investment and spurring regional development.
President William Ruto presided over the launch and groundbreaking of the project on Tuesday, describing it as a catalyst for Kenya’s industrial transformation.
The financing deal seeks to provide investors with competitive financing solutions to establish operations within the SEZ, with a focus on manufacturing, agroprocessing, logistics and value-addition enterprises.
By combining resources, expertise and networks, KCB and Afreximbank seek to empower both local and international investors.
Commenting on the deal, KCB Group CEO, Paul Russo, said the agreement marks a significant step in the bank’s mission to catalyse sustainable industrial growth in Kenya and across the region.
“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,” Russo said.
By channeling affordable capital into the zone, Russo added that the partnership between KCB and Afreximbank is expected to unlock critical infrastructure, strengthen export-oriented industries, and position Kilifi as a magnet for both domestic and foreign direct investment.
On her part, Afreximbank’s Managing Director, Export Development, Oluranti Doherty, said Afreximbank’s mandate is to promote and expand African trade, and the deal is a concrete demonstration of that commitment.
“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,” Doherty said.
Notably, the agreement underscores the role of strategic partnerships in bridging Africa’s financing gap while enabling the private sector to play a transformative role in sustainable development.
The funding is under Afreximbank's $3 billion (Sh387.7 billion) Country Programme to Kenya, signed in May 2023, to support the development of various sectors of its economy, with a special focus on industrial development.
These include the Naivasha Industrial Park, Dongo Kundu Industrial Park and now the Vipingo SEZ.
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