KCB, Afreximbank sign Sh104Bn financing pact for firms eyeing Vipingo SEZ
Mr. Paul Russo (from left), Group CEO KCB Group PLC; Ms. Oluranti Doherty, Managing Director Export Development, Afreximbank and Mr. George Olaka, CEO Arise IIP-Kenya during the signing of the US$800 million funding deal for Vipingo Special Economic Zone (SEZ) in Kilifi County. They are flanked by Mr. Gagan Gupta (left), Founder and CEO Arise IIP, Dr. William Ruto, President of the Republic of Kenya and Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank
Lenders KCB Group and the African Export-Import Bank (Afreximbank) have stepped up the offering to attract export-oriented investors seeking to set up operations at the upcoming Vipingo Special Economic Zone, in Kilifi County.
In an announcement on Wednesday, KCB Group and Afreximbank said their bold plan aims at providing financing of up to $500 million (about KES65 billion) and $300 million (KES39 billion), respectively to investors focusing on manufacturing, agro-processing, logistics, and value-addition enterprises in the new industrial park.
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"We are delighted to elevate Vipingo SEZ as a gateway to transforming, creating and sustaining an environment in which export-oriented industries can thrive, by leveraging economies of scale, shared infrastructure and access to global markets," said KCB Group CEO, Paul Russo.
On her part, Afreximbank’s Managing Director, Export Development, Ms. Oluranti Doherty noted: "Afreximbank’s mandate is to promote and expand African trade, and this partnership with KCB is a concrete demonstration of that commitment.
She added: "Special Economic Zones are powerful engines for industrialization, export growth, and economic diversification. Through this financing framework, we will not only enable enterprises to scale but also support the creation of sustainable supply chains that uplift local communities and drive regional integration."
The partnership between the two lenders is expected to further unlock critical infrastructure, firm up the establishment of export-oriented industries in Kenya, and position Kilifi as a magnet for both domestic and foreign direct investment.
Direct jobs
The KES390 billion Vipingo Special Economic Zone, whose construction officially started this week, is an ambitious partnership undertaking on 2000 acres by investment firm Centum and Dubai-based Arise Integrated Industrial Platforms (Arise IIP). Early projections show that the SEZ will give rise to about 35,000 direct jobs.
KCB and multilateral lender Afreximbank said by joining forces, expertise, and networks, they will empower both local and international investors to access working capital, project finance, trade financing, project preparation funding, guarantees as well as advisory.
The funding to Vipingo SEZ is part of Afreximbank’s $3 billion Country Programme to Kenya signed in May 2023 to support the development of various sectors of its economy, with a special focus on industrial development, namely the Naivasha Industrial Park, Dongo Kundu Industrial Park and now the Vipingo SEZ.
Afreximbank disbursed US$ 40 million in funding to facilitate the development of the Vipingo Special Economic Zone (SEZ) with a further commitment of $500 million to support individual investors setting up operations within the park.
