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The Standard reported that Suleiman Shahbal, through his Gulf Group of Companies, has secured a landmark Special Economic Zone investment agreement with global logistics firm DP World. The deal, valued at Sh12 billion or about $93 million, aims to transform Mombasa into a leading industrial and logistics center in Africa. Details shared with the announcement indicate that construction is set to proceed with significant early commitments from businesses. This marks a key milestone in efforts to strengthen Kenya’s position in global supply chains.
According to reports, the project is expected to create 7,972 direct jobs while 67 companies have already confirmed their intention to establish operations in the zone. The early participation underscores investor confidence in the venture even prior to groundbreaking. Shahbal has advocated for this development for more than two decades, with the current partnership realizing that long-term vision. The initiative aligns with national goals to expand manufacturing and trade capacity along the coast.
Kenya’s Special Economic Zones Authority describes the Dongo Kundu site as encompassing roughly 3,000 acres next to the Mombasa Port. The zone is managed by the Kenya Ports Authority and offers preferential customs and tax arrangements to qualifying businesses. Its strategic placement is designed to capitalize on existing port infrastructure for efficient logistics operations. Such features have historically helped similar zones draw foreign investment.
A World Bank analysis found that Special Economic Zone programs in Kenya have succeeded in creating jobs and boosting exports when supported by appropriate incentives and infrastructure. The assessment pointed to tax holidays and improved services as particularly attractive to investors in the Kenyan context. Comparable programs in other African nations have shown varying degrees of success depending on policy execution. The review also emphasized the importance of location and regulatory clarity for long-term viability.
DP World has established economic zones in multiple locations across Africa, including the Berbera Economic Zone in Somaliland. The operator brings extensive experience in integrating port, logistics and zone operations to enhance trade flows. Earlier explorations by DP World into Kenyan SEZ opportunities date to at least 2023, when feasibility studies were conducted for related projects.
The latest agreement builds upon Kenya’s ongoing work to develop its network of special economic zones as part of broader economic diversification plans. Public records show that these zones continue to evolve with input from both public and private stakeholders. Additional information regarding implementation timelines is anticipated from the involved parties in the near future.
