Export Processing Zones are areas that encourage foreign investments by giving incentives to export-oriented businesses.
These incentives include tax exemptions, infrastructure, quick approvals, and more straightforward licensing procedures. Export Processing Zones play a critical role in boosting Kenya's manufacturing sector.
Quick Facts
- The total number of gazette Export Processing Zones in Kenya was 105 in 2024.
- The number of people in Kenya employed in EPZs was 90,698 in 2024.
- Mombasa County had the highest number of EPZs with a total of 28 in 2024.
- Export Processing Zones made capital investments of Ksh 171.9 billion in 2024.
- Export Processing Zones made sales worth Ksh 136.2 billion in 2024.
Number of EPZs in Kenya
Kenya had 105 gazetted Export Processing Zones and 180 operating enterprises in 2024. The total number of people employed in EPZs in 2024 was 90,698. The number of employed locals was 89,941, while 757 were expatriates.[1]
The total number of privately owned EPZs in Kenya was 96, while those owned publicly were 9. The chart below shows the number of gazetted EPZs from 2019 to 2024.
Distribution by county
EPZs play a massive role in determining a region's manufacturing output. Counties with EPZs in their localities had higher manufacturing output than those without, impacting their overall GCP.
Mombasa County had the highest number of Export Processing Zones, with 28, followed by 17 in Kilifi and 9 in Kwale. In addition, Nairobi, Machakos, and Kiambu each had 7, whereas Nakuru and Murang'a each had 4 EPZs.
As the table below shows, counties with a higher number of export processing zones also have a higher contribution to the national manufacturing output.[2]
|
County |
Number of EPZs |
County Contribution to Manufacturing (%) |
|
Mombasa |
28 |
9.6 |
|
Kilifi |
17 |
4.6 |
|
Kwale |
9 |
0.8 |
|
Nairobi |
7 |
36.9 |
|
Machakos |
7 |
7.8 |
|
Kiambu |
7 |
8.4 |
|
Nakuru |
4 |
3.9 |
|
Bomet and Embu |
3 |
|
|
Kisumu, Kirinyaga, Nandi, Uasin Gishu, and Meru |
2 |
|
|
Kajiado, Elgeyo Marakwet, Laikipia, Narok, Kitui, and Busia |
1 |
Total Sales from EPZs
Sales from Export Processing Zones reached Ksh 136.2 billion in 2024, up from a total of Ksh 111.9 billion. These sales were, however, a significant increase from a total of 77.2 billion in 2019.
The chart below shows the total sales from EPZs in Kenya.[1]
Exports accounted for Ksh 129.4 billion, while domestic sales amounted to Ksh 6.8 billion.
Imports and capital investments by EPZs
Export processing zones invested Ksh 171.9 billion in capital in 2024, up from Ksh 107.9 billion in 2019.
In addition, EPZs made local purchases worth Ksh 22.96 billion in 2024, up from Ksh 9.8 billion in 2019.
The value of imports by export processing zones was Ksh 71.8 billion in 2024, up from Ksh 39.8 billion in 2019.
African Growth and Opportunity Act (AGOA)
AGOA is a United States initiative toward African countries that incentivizes them to produce apparel for export to the United States. Kenya makes these garments in some select EPZs.
Employment
The total number of enterprises engaged in apparel manufacturing under AGOA was 40 in 2024, a 2.6% increase from 39 enterprises in 2023. The number of people employed in these enterprises increased by 15.2% from 58,002 in 2023 to 66,804 in 2024.
Capital investments and exports
Capital investments in garment manufacturing in EPZs increased by 21.1%, from Ksh 31.6 billion in 2023 to Ksh 38.3 billion in 2024.
Exports increased by 19.2% from Ksh 50.8 billion in 2023 to Ksh 60.6 billion in 2024. The chart below shows the value of exports in millions from EPZs' garment manufacturing.
See Also
- Value of Kenyan imports and exports by country and region
- Gross County Product per Capita – County GDP
- County contribution to manufacturing
- Percentage of people employed in agriculture, services, and industry