Kenya’s Sh25bn industrial parks dream that is now choking in dust

They were launched amid fanfare, heralding a new era of economic development and job creation across different counties.

But beneath the surface of colourful inaugurations of the County Integrated Industrial Parks lies a stark reality as many of them have failed to progress and take off as envisioned.

While construction of some is ongoing, the journey toward actualisation has been marred by challenges and setbacks, leaving communities and stakeholders grappling with unfulfilled expectations and unrealized potential.

Many counties invested significant resources in infrastructure development, land acquisition, and promotional activities to attract investors to these parks.

However, a combination of factors, including bureaucratic bottlenecks, inadequate infrastructure, poor planning, and limited access to financing, has hindered their progress.

As a result, many of these once-promising projects remain unfinished or abandoned, serving as stark reminders of the challenges facing economic development initiatives at the county level.

Also Read: Court halts Nakuru County Sh500m industrial park plans

In August last year, then Trade Cabinet Secretary Moses Kuria had pledged all the counties would have industrial parks by August this year but eight months later most have stalled.

Each devolved unit was required to allocate Sh250 million and the national government through the State Department for Industry Sh250 million for each of the devolved units.

A countrywide site visit by the Nation shows that some areas where construction has either not started or stalled after it picked off the ground are Mombasa, Meru, Nyeri, Laikipia, Kajiado, Siaya, Homa Bay, Nakuru and Elgeyo Marakwet.

Those where we found construction ongoing are Kisii, Nyamira, Busia, Embu and Uasin Gishu.

In Nyanza, their slow implementation has dampened the hopes of thousands who were depending on it for employment.

In Siaya for instance, construction of Siaya Industrial Park stalled as soon as its construction began last year.

When the Nation visited the site, the grass was almost covering the foundation that was already laid.

The metallic pillars established to anchor the building are fast rusting thanks to the rains that have begun pounding the area.

“We were promised that this facility will change our lives, now it’s like they forgot immediately they left this place,” laments Mr Peter Opiyo 39, who is herding livestock next to the park.

“We expected to get job opportunities and finally change our lives. The county government and the national government should step in so that construction can continue,” noted Mr Opiyo.

Governor James Orengo, attributed the delay to a lack of a clear agreement between the county and the national government to ease the approval of funds by the controller of the budget.

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“The initial stand was that counties were to contribute Sh250 million against a similar amount by the national government. The crisis however is that for such funds which are similar to conditional grants to be released, they must be approved by the CoB. This includes a signed agreement by the two governments as a sign of commitment that they will keep their end of the bargain,” said Mr Orengo.

He added that the agreements must be drawn by attorneys from both sides making the parties liable should anything wrong happen.

In Nakuru, construction of the Nakuru County Aggregation and Industrial Park project in Njoro sub-county has hit yet another snag as it became embroiled in a legal battle over land ownership.

The project now faces uncertainty as competing claims to the land threaten to derail its progress.

The latest setback stems from a dispute involving two separate groups vying for ownership of the parcel of land earmarked for the industrial park.

When President William Ruto visited Homa Bay county on February 27, 2024, he directed Kenya Power to connect electricity to the county aggregation and industrial park in Riwa village in Rachuonyo North.

This was to facilitate operations of machines at the park whose construction started in October 2023 after it was commissioned by Kuria.

Power supply to the park was supposed to be connected in two weeks based on the presidential directive.

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Governor Gladys Wanga also directed relevant departments in her government to improve the area around the industrial park.

The Nation can reveal that none of these directives have been implemented and no work is ongoing in the area.

A spot check at the site revealed that no work has been done with part of the park filled with water and unable to support construction of buildings.

Besides a perimeter wall at the park whose construction started when Mr Kuria commissioned it, no other infrastructural activity shows that the site will host industries.

All machinery that was used during the ground-breaking has been withdrawn.

Last week, only a security guard was at the site to protect the area and two shipping containers that were within the perimeter wall.

Farmers are also using the park to graze animals.

In Kisii and Nyamira however, work is ongoing in the industrial parks.

In Kisii, the site is located at Tongeri, in Bomachoge Chache Constituency. During our visit, workers were on site.

One of the contractors there said they intend to finish the job in two years’ time.

"The site where we are building has more clay soil. We have to do a good job because of the nature of the soil here. We believe we will complete the project within the specified timelines," said the contractor.

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In Nyamira, the industrial park is coming up at Sironga in West Mugirango Constituency.

Equally, the level of progress is similar to the one in Kisii. A visit by Nation to the County Aggregation and Industrial Park at Nasewa in Matayos, Busia County on March 28, 2024, revealed a beehive of activities on the 803 acres that were lying idle.

Construction of the industrial park on one side is active with engineers saying it is about 40 per cent complete.

Work at the Baringo Aggregation and Industrial Park in Kimose, Mogotio Sub-County has started with the construction of a perimeter wall.

According to the county's accounting officer (CO) in charge of trade, industry and cooperative development Collins Nakedi, works at the site are at 15 per cent and they are targeting to start the building of the warehouses in two weeks.

In Trans Nzoia, there is little to show for construction of the Sh500 million Industrial park and aggregation center was launched in September 2023.

A spot check by the Nation at the site shows only part of the fence has been put up by the contractor who was awarded the tender.

In Laikipia, Mr Kuria launched the county’s industrial park on September 18, 2023, in Rumuruti.

Construction of the industrial parks which was to sit on a 100-acre piece was expected to be completed in six months but the project appears to have come to a halt in unclear circumstances.

The excitement generated by the visit by Mr Kuria appears to have fizzled out with the project having been abandoned after only two months.

“Many people who were working at the site are a disappointed lot with some yet to be paid their wages. Those who sought casual employment were being paid Sh800, a good deal only that some are still owed as we speak,” said Mr Robert Gechero, chairman of Central Kenya Youth Association-Laikipia Chapter.

Governor Joshua Irungu had pledged to install a common user digital-precision leather measuring and cutting machines for local youth professionals to meet quality demands and tastes of the market by using digital technology.

A senior official at the county’s trade department confirmed that the project was on a temporary hold due to financial constraints but construction works are set to resume.

Also Read: Bungoma, Uasin Gishu industrial parks fail to take off  despite promises

In Embu, the project has kicked off. The Sh500 million initiative, which is being funded by the county and national government was launched in December 2023 in an event which was presided over by Governor Cecily Mbarire and Trade Cabinet Secretary Rebecca Miano.

Already the project is 60 per cent complete, according to County Lands Executive Raymond Kinyua.

However, Mr Kinyua admitted that the project faces a few challenges. "The project is riding on the county funding since the national government has not released its Sh250 million which it promised. The contractor is ahead of schedule and can only be delayed by lack of adequate funds. Without any hitch of funding we should be done by November," said Mr Kinyua.

In Meru, construction of the Aggregation and Industrial Park at Ruiri Rwarera in Buuri constituency has stalled with no buildings in sight.

It is located a kilometre off Meru-Isiolo road and about three kilometres from Isiolo town.

A visit to the area revealed that only a perimeter wall has been built around the 100-acre plot. There are a few construction equipment on the site. The gate was not also manned.

The Meru County government is supposed to contribute Sh250 million while the national government will top up the same amount.

Mwenda Ithili, Leader of Minority at the Meru County Assembly said already, Sh350 million has been released towards construction of the project.

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“The county assembly allocated Sh250 million which was released while the national government released Sh100 million pending a balance of Sh150 million. But the project has been abandoned,” the Akithi ward MCA said.

In Uasin Gishu, a spot check of the 35-acre county aggregation and industrial park in Moiben shows that construction works of the project are underway. A site visit indicated that engineers were supervising the project that will offer value addition to agricultural products.

"The construction of Moiben is ongoing and we expect to be operational by September," said County, Trade Executive Martha Jeruto.

In Nyeri, a 30-acre aggregate and industrial park lay idle with no workers on site during our visit.

A spot check at the property which is strategically located 50 metres from the Great North Road and adjacent to the Nanyuki- Nairobi railway line passing through Naromoru, revealed an unfinished perimeter fence, incomplete concrete slab houses, two abandoned construction machines and a lone guard.

A notice placed on the Sh500 million project showed that the county government awarded the contract to Bluevalley Enterprises Limited.

In Elgeyo Marakwet, Governor Wisley Rotich has asked the national government to allocate an additional Sh250 million to enable the county to set up the industrial park.

In Kajiado, six months after the launch the project has seemingly suffered a false start leaving behind a deserted site.

The earlier excavated ground was covered by overgrown grass owing to the recent rains. The foundation plaque conspicuously stands on the site and in the distance, two semi-permanent houses are deserted. The houses are said to have accommodated earth movers operators for a few days before the contractor left.

An official from the construction firm contracted by the government to develop the park told Nation in a condition of anonymity the firm is yet to receive funds from the government to fast-track the project. "The firm has not received a single coin from the government. Once the funds are made available, we will return the machinery ready to roar,” he said.

The Jomvu project in Mombasa has equally stalled six months after its launch. Despite a promise by the government that the project would begin weeks after launch, the land has remained idle with the plaque which was put up, a section vandalised.

- Reporting by Joseph Openda, Rushdie Oudia, Kassim Adinasi, Wycliffe Nyaberi, George Odiwuor, Stanley Ngotho, Florah Koech, Barnabas Bii, Stanely Kimuge, Evans Jaola, Anthony Kitimo, Mwangi Ndirangu, George Munene, Gitonga Marete, and Mercy Mwende