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DP World Backs Sh12bn Mombasa Industrial Hub Expansion

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DP World backs Sh12 billion Mombasa industrial hub expansion, highlighting logistics, port infrastructure, industrial investment, manufacturing, and Kenya’s economy
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Global logistics group DP World is backing a more than Sh12 billion ($100 million) Special Economic Zone in Jomvu, Mombasa, expanding its role in Kenya beyond cargo movement into industrial development, manufacturing and export logistics.

The planned 535-acre development will bring manufacturers, processors, exporters and logistics businesses closer to the Port of Mombasa and major transport corridors. The project has already attracted interest from dozens of companies and is expected to generate thousands of jobs as Kenya seeks to turn the Coast into a larger production and export hub.

Key Overview

  • The Mombasa Special Economic Zone represents an investment of more than Sh12 billion.
  • The industrial park will cover approximately 535 acres in Jomvu.
  • DP World is partnering with Mombasa Free Zone Ltd and the Mombasa County Government, with GulfCap Group involved in the development.
  • Around 67 companies have already expressed interest in operating from the zone.
  • Developers project approximately 7,972 direct jobs, while the government has put the first-phase potential at around 10,000 jobs.
  • Target sectors include manufacturing, pharmaceuticals, engineering, agro-processing, logistics and exports.
  • Businesses in special economic zones are expected to benefit from a preferential electricity tariff of Sh10 per kilowatt-hour.

DP World Moves Beyond Port Logistics

The project represents a broader bet on Mombasa’s role in regional trade. Rather than concentrating only on moving imported and exported cargo through ports, DP World will help develop an ecosystem where goods can be manufactured, processed, stored and distributed from the same location.

The Sh12 billion agreement covers a 535-acre site in Jomvu that was previously used as a cattle staging ground by the Kenya Meat Commission. Its proximity to Mombasa’s port infrastructure and major transport routes could allow companies to reduce the distance between factories, warehouses and export gateways.

The deal was formalised at State House on September 8 through a tripartite agreement involving the County Government of Mombasa, Mombasa Free Zone Ltd and DP World. President William Ruto witnessed the signing as the government positioned the project as part of Kenya’s push toward greater domestic production and exports.

Manufacturers Targeted for the New SEZ

The development is designed to attract companies involved in manufacturing, processing, assembly, logistics and value addition rather than functioning solely as a storage and distribution centre.

Investor interest is already emerging, with 67 companies reported to have expressed interest in establishing operations at the zone. The raw project plans also identify potential investors from markets including India, China, Vietnam, the United Arab Emirates and Europe.

Pharmaceutical manufacturing, engineering, agro-processing and other industrial activities are among the priority areas. Bringing these businesses into one zone could also create demand for transport services, warehousing, maintenance, construction and local suppliers.

The developer’s projection points to 7,972 direct jobs, while the government has separately described the first phase as capable of creating around 10,000 jobs once operations scale up.

Infographic showing DP World’s Sh12 billion Mombasa industrial hub expansion, highlighting port logistics, industrial infrastructure, investment, manufacturing, and trade

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Lower Costs Could Help Attract Exporters

Competitive operating costs will be critical if the Mombasa zone is to attract manufacturers that could otherwise locate production in other regional or international markets.

The government has said SEZ investors will receive a preferential electricity tariff of Sh10 per kilowatt-hour, potentially lowering one of the most significant costs faced by manufacturers.

Companies based in Mombasa also have access to the Port of Mombasa, the Standard Gauge Railway and road networks connecting Kenya with neighbouring economies. The combination is intended to support production for domestic consumers as well as exports into the East African Community, COMESA and the wider African market.

For Kenya, this model could help move the port city away from functioning primarily as a transit point for goods and towards earning more value from processing and manufacturing before products enter regional and global supply chains.

Fifteen-Year Plan Finally Moves Forward

The project has taken years to reach the development stage. GulfCap Group Chairman Suleiman Shahbal has said the industrial-zone concept has been pursued for around 15 years, including previous attempts to secure government and private-sector backing.

Earlier efforts struggled to secure sufficient investor participation, partly because potential investors considered the development to be competing with other planned industrial projects around Mombasa.

The latest partnership gives the project a global logistics investor with experience operating ports, economic zones and supply-chain infrastructure internationally. President Ruto has now set a six-month completion target for the zone to move rapidly from agreements into physical infrastructure and factory development.

If investor commitments translate into operating factories, the Jomvu project could deepen Mombasa’s economic role beyond port services by combining industrial production, logistics and exports within a single hub.

Sources

Daily Nation / Citizen Digital / The Star / Capital FM Kenya / People Daily

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