Kenya’s Export Processing Zones experienced substantial investment inflows with KSh 12.3 billion in new manufacturing project announcements during 2025-2026. Zone operators including the Kenyan Special Economic Zones Authority expanded infrastructure to accommodate growing demand from manufacturers seeking tariff advantages and simplified regulatory environments. Asian companies, particularly from China, India, and Vietnam, established production facilities targeting regional export opportunities. Manufacturing subsectors included textile and apparel, leather products, agricultural processing, electronics assembly, and light industrial equipment production.
Zone infrastructure development accelerated to accommodate manufacturing expansion. Industrial space in Nairobi’s EPZ reached capacity, spurring zone development in alternative locations including Mombasa Port vicinity and Kisumu Lake Port area. Power supply assurances attracted energy-intensive manufacturing processes. Water availability and waste management infrastructure met international environmental standards. Telecommunications connectivity enabled digital operations and global supply chain integration critical for export-oriented manufacturing.
Employment in EPZs expanded significantly, reaching approximately 85,000 workers across manufacturing, logistics, and administrative functions. Skills development programs trained workers in advanced manufacturing techniques and quality control. Wage competitiveness compared favorably to global manufacturing locations, attracting labor-intensive production processes. Worker productivity exceeded regional benchmarks, attracting multinational manufacturers considering East African production hubs. Export processing zone workers contributed substantially to Kenya’s export earnings and foreign exchange generation.
Export volumes from EPZs grew 28% year-over-year, with apparel and horticulture products dominating shipments. Regional trade expansion under EAC and African Continental Free Trade Agreement frameworks enhanced market accessibility for zone-produced goods. Quality certifications and international standards compliance strengthened competitive positioning. Government support through tax incentives and infrastructure investment signaled commitment to manufacturing-led development, with EPZs positioned as critical engines of economic growth and employment creation.
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