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Government resolves Dongo Kundu Land Compensation standoff

The State Department for Investment Promotion has stepped up efforts to operationalize the 3000-acre Dongo Kundu Special Economic Zone in Mombasa.

Investment Principal Secretary Abubakar Hassan says they have successfully resolved the land compensation row involving the Project Affected Persons (PAPs) during a multi-agency meeting to check the preparedness of the SEZ to admit investors.

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The meeting at the Kenya Ports Authority (KPA) in Mombasa brought together Managing Directors from KPA, the Special Economic Zone Authority (SEZA), the National Land Commission (NLC) and officials from the Japan International Cooperation Agency (JICA).

Last year, the 1.4 billion shillings compensation plan was halted to allow for an audit of the list of those affected by the project to weed out non-residents from the about 1759 beneficiaries.

Hassan said after an assessment, the project is ready to kick off with all verified PAPs set to receive compensation and be resettled.

“There has been a small delay on the issue of the PAPs but the queries that were raised before have been resolved. In the next two months that PAPs issue will be no more,” stated PS Hassan, encouraging investors to apply for slots in the SEZ.

The Head of State, PS Hassan noted, had directed that Dongo Kundu SEZ be operationalized quickly to facilitate investors entry.

The multi-billion shillings Dongo Kundu bypass is at 90 per cent completion. The dual carriageway project will play a pivotal role in the SEZ by facilitating the transportation of products to industries.

It will connect three main transport corridors: the Mombasa-Nairobi highway, the Mombasa-Malindi highway, and the Mombasa-Lunga Lunga highway.

“The Dongo Kundu bypass will be ready by May to connect to the hinterland. Construction of access roads to the port of Mombasa will commence in July,” he said.

Dongo Kundu SEZ will have a power incentive of 10 shillings for peak hours and 7.50 shillings during off-peak akin to the Naivasha SEZ.

KPA Managing Director Capt. William Ruto said they have received numerous applications from investors willing to set up businesses at the SEZ, even as he invited more investors.

“The government directive is that the zone should be in operation we are slightly behind but we have solved all issues that were impeding progress,” said Capt. Ruto.

Haniel Mengistu
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