Export Processing Zones (EPZ) program came into existence in 1990 following the enactment of CAP 517 Laws of Kenya, which also created the Export Processing Zones Authority (EPZA), as the regulatory body. However, while the program was officially adopted in 1990, production activities did not take off effectively until 1993. The introduction of the program follows several studies indicated their viability, thus making Kenya one of the early African countries to adopt EPZ in the 1990s. The factors which favoured establishment of EPZs in Kenya included among others, relatively large and dynamic private sector, a low cost but well trained labour force and relatively good infrastructure.
Objectives of EPZ program.
- Attraction of new investment
- Expansion & diversification of exports products and markets
- Employment creation
- Technology transfer & skills upgrading
- Linkage development through local resource utilization & foreign exchange earnings