NAIROBI, Kenya — President William Ruto is set to officiate the signing of a Sh12 billion agreement between GulfCap Group and global logistics company DP World, paving the way for the development of a major Special Economic Zone (SEZ) in Jomvu, Mombasa.
The agreement, valued at more than US$100 million, is scheduled to be signed at State House, Nairobi, marking a major step towards establishing an industrial, manufacturing and logistics hub at the Coast.
The proposed SEZ is expected to attract 67 companies and create approximately 7,972 direct jobs, with additional employment and business opportunities anticipated around the development.
535-acre Jomvu SEZ
The Special Economic Zone will occupy approximately 535 acres in Jomvu Sub-County, on land that was previously used as a cattle staging ground by the Kenya Meat Commission.
The development is expected to accommodate companies involved in manufacturing, logistics, exports and other commercial activities.
GulfCap Group, which is chaired by businessman and East African Legislative Assembly (EALA) MP Suleiman Shahbal, said the project is expected to transform the economic landscape of Mombasa by creating a large-scale platform for industrial investment.
Shahbal said the agreement represents the culmination of efforts spanning more than a decade.
“This is a first of its kind project. It’s something that I have chased over the past 15 years and finally today we have achieved it. I am delighted because of the impact this project will have on Mombasa’s economy,” Shahbal said ahead of the launch.
The development is expected to provide space for companies seeking to establish operations close to Mombasa’s port and other transport infrastructure serving the Coast.
67 companies expected at the zone
According to GulfCap Group, 67 companies are expected to establish operations within the SEZ.
The companies are expected to span several sectors, including manufacturing, logistics and export-oriented businesses.
The concentration of businesses within the zone is intended to create an industrial ecosystem in which manufacturers, logistics providers and other enterprises can operate within a designated economic and infrastructure framework.
The project is also expected to generate indirect employment through construction, transport, services, supply chains and businesses supporting companies operating within the zone.
DP World brings global logistics network
The project brings together GulfCap Group and DP World, one of the world’s major logistics and supply-chain companies.
Headquartered in Dubai, DP World operates ports, free zones and logistics facilities across more than 70 countries.
The company has invested in infrastructure and logistics operations across Africa, Asia, Europe and the Americas and plays a significant role in facilitating international trade.
Its involvement in the Jomvu project is expected to strengthen the connection between companies operating within the SEZ and international supply chains.
The partnership could also support the development of export-oriented manufacturing and logistics activities by linking businesses based at the zone to wider regional and global markets.
Nearly 8,000 direct jobs projected
One of the major economic benefits attached to the project is its projected employment impact.
GulfCap Group estimates that the SEZ will create 7,972 direct jobs once companies establish operations within the development.
Additional jobs could emerge indirectly through suppliers, transport operators, construction firms, retailers, service providers and other businesses supporting the SEZ.
The development is therefore being positioned as more than a property or infrastructure project, with its promoters expecting it to generate a wider economic impact across Mombasa and the Coast region.
For Mombasa, the investment could also provide opportunities to expand manufacturing and logistics activities beyond the traditional port and tourism sectors.
Government pushes industrial investment
The proposed Jomvu SEZ comes amid government efforts to attract private investment into manufacturing, logistics and export-oriented industries.
Special Economic Zones are designed to provide designated areas where businesses can operate under a framework intended to encourage investment, production and trade.
The government has increasingly promoted SEZs and industrial parks as vehicles for job creation and economic development.
The location of the Jomvu project is also strategically significant because of Mombasa’s position as Kenya’s principal maritime gateway and an important regional trade hub.
An industrial and logistics development near the port could allow manufacturers and exporters to access transport infrastructure while positioning Mombasa as a base for businesses serving the wider East African market.
From cattle staging ground to industrial hub
The 535-acre parcel earmarked for the development has a different history.
The land was previously used as a cattle staging ground by the Kenya Meat Commission.
The planned transformation into a Special Economic Zone represents a significant change in the intended use of the property, with the project expected to accommodate industrial and commercial facilities serving dozens of companies.
The development will also require supporting infrastructure capable of serving the anticipated concentration of businesses, workers, freight and other commercial activity.
Potential impact on Mombasa economy
The project is expected to have a wider impact on Mombasa’s economy through new investment, employment and business opportunities.
For local businesses, increased activity around the SEZ could create demand for transport, accommodation, food services, professional services, construction, maintenance and other supporting industries.
The expected presence of 67 companies could also expand the local tax base and stimulate demand for infrastructure and services.
However, the long-term economic impact will depend on how quickly companies take up space, the scale of their operations and whether the projected investments and employment opportunities are fully realised.
The signing of the agreement is therefore an important milestone, but the eventual impact will depend on implementation and the pace at which the proposed SEZ becomes operational.
DP World partnership signals logistics focus
The involvement of DP World gives the project a particularly strong logistics dimension.
Mombasa already serves as a major entry and exit point for goods destined for Kenya and neighbouring countries. A logistics-oriented SEZ could allow companies to locate closer to major transport routes and port facilities.
The combination of manufacturing, logistics and export businesses within one designated zone could also help shorten supply chains and improve access to regional markets.
If successfully implemented, the Jomvu development could strengthen Mombasa’s role as a regional industrial and logistics centre while supporting the government’s broader push to increase manufacturing and exports.
Major investment milestone
The Sh12 billion GulfCap-DP World agreement represents one of the significant planned private-sector investments in Mombasa’s industrial development.
With 535 acres, 67 expected companies and nearly 8,000 projected direct jobs, the Jomvu SEZ is being positioned as a major economic project for the Coast.
The signing at State House is expected to formally advance the partnership and set the stage for the next phase of development.
If those targets are achieved, the Jomvu SEZ could become an important new industrial and logistics hub for Kenya’s Coast and a potential gateway for businesses seeking access to East African and global markets.
