Athi River EPZ

Administration Building,Viwanda Road,
Athi River Export Processing Zone, off Nairobi-Namanga Highway,
Athi River, Kenya
P.O. Box 50563
Nairobi 00200
Kenya
Tel +254-45- 26421/2-6
Fax +254-45-26427
Email: info@epzakenya.com

Overview

The Athi River Export Processing Zone was gazetted on 23 rd November 1990. It was the the first publicly developed zone and covers 339 hectares of land including 229 hectares of the main site, LR. No 18474 in Athi River (Mavoko). The zone was developed at a cost of US$ 30 million with a World Bank (IDA) line of credit (80%) and with contribution from the Government of Kenya (20%). The zone was designed to provide infrastructure and services for export oriented industries within the zone and ancillary services to the wider community in Mavoko and Kitengela .

In this regard, the project is more than an industrial park; it is an urban development project with various facets.

The site was selected because it had a number of advantages – the land was suitable for drainage and sewerage works; the site was easily accessible by two major highways (Nairobi-Mombasa and Nairobi-Namanga); was close to the Jomo Kenyatta International Airport; was adjacent to the main Nairobi –Mombasa railway line; was close enough to Athi River town and Nairobi cityand yet had adequate undeveloped land in the vicinity for future planned development. Phase 1 of the zone was completed in 1997 covering 93 of the 292 hectares of the main site.

Zone Infrastructure

The gazetted zone covers 339 hectares, of which 292 hectares is in the main zone and 47 hectares is for supporting developments adjacent to the zone. In addition, the EPZ Authority developed two off site locations where ancillary service facilities (water storage tank and sewerage treatment ponds) are situated.

On-site zone infrastructure

The zone has the following on site infrastructure

• 6.7 Km of roads with wearing asphalt surface
• 5.5 Km of foul sewerage
• 21.8 Km of storm water drainage
• 411 street lights
• 6.2 Km water mains 100-600 mm diameter
• office bock with 4 floors and roof top restaurant
• 6 industrial buildings (type A) of 1,000 sq m each
• 6 industrial buidings (type B) of 1,500 sq m each
• fire station
• health clinic
• zone administration, customs, security and police post
• power substation and power distribution network
• zone staff canteen

Offsite Zone infrastructure

Water supply comprising:

• 19 Km treated water trunk main
• reinforced concrete reservoir of 8,500 cu m capacity
• booster pumping station and ancillary works
• 12.9 Km of 250 mm diameter rising/falling mains
• elevated steel water tank of 18 cu capacity
• 5Km distribution mains
• Widening of Kajiado road:

Sewerage and treatment works comprising:

• 3.5 Km of trunk sewer
• 15.5 Km of box culvert
• 3 aerial crossings
• 150,000 cu m sewage stabilization ponds

Ancillary Developments

Ancillary developments underway or planned with private sector participation are:

• 32 additional industrial buildings of 1,200 sq m each (complete)
• Daewoo Vocational Training Institute (complete)
• 500 unit low cost housing site/service scheme adjacent to main zone

Tenant profile

The EPZ at Athi River was designed to facilitate the activities of licenced export oriented companies holding the EPZ enterprise license (manufacturing, commercial or services). The zone can thus cater for three main categories of zone tenants:-

• Light industrial investors such as those in garment assembly, electronics assembly, handicraft manufacture, food processing and packaging, plastic moulding, gemstone processing, paper conversion, furniture manufacture etc. These can be accommodated in the pre built industrial buildings, which are essentially an industrial shell with ablution facilities, office space, reception area, and showroom.

• Tenants occupying serviced plots with a nominal size of 1 hectare but sub-divisible into quarter hectare plots, with access roads, storm drainage, telephone connection, sewerage and power available for connection. Local investors who are familiar with local construction practices and with industries requiring customized premises favour these plots.

• Tenants leasing office space (space is available within the EPZ zone administration block for lease to EPZ service enterprises and to other service providers)

Most of the industrial buildings constructed by the Authority had been occupied by tenants by January 2005. Several private EPZ firms have since constructed 41 industrial buildings for rent; most of which are already occupied and this number of units is expected to increase with ongoing construction of more units.

Initial development of the zone was financed by the public sector. However since the basic infrastructure is in place and investors are already taking up premises, there are now opportunities for the private sector to under take zone related developments profitably. These are in six main areas:-

1. Operation of the Athi River EPZ dispensary.
2. Developments of housing near the zone, for middle and low-income EPZ workers. 28 hectares of land is available from the EPZ Authority for this purpose
3. operation of Canteen facilities within the zone (4 units were completed in June 1997)
4. construction of additional industrial buildings for rent to small scale industries
5. Business Centre available under Business Service Permit.
6. Shopping Centre

Further details about these opportunities are available from the EPZ Authority

Property Rentals

Industrial buildings:

Rent - 2.8 US $/sq ft per annum (or 30.1 $/sq m per annum)plus 15% service charge

Lease Terms – 6 year renewable lease with rents reviewed every 2 years

Service plots

Rent – 5,000 US $ /hectare annually plus service charge of 10% on a 30 year minimum lease or US $ 100,000 per hectare one time payment for 60 years lease.

Office space in Administration block.

Rent – US $ 2.80 per sq.ft/annum plus 15% service charge (for un partitioned office space).

Kipevu EPZ (Mombasa)

Mombasa Office
P.O. Box 89474,
Mombasa
Tel. +254-41-435406
Mobile: 0720-425893
Fax : +254-41-435280
Email: epzmsa@wananchi.com

Overview

Mombasa is the major seaport of East Africa . It has good supporting infrastructure and has an abundant pool of affordable labour. It is close to sources of coastal agricultural raw materials (coconut, bixa, cashew nuts) and has the second concentration of industrial activity after Nairobi . These are some of the factors that made the town attractive for development of Kenya 's second public funded EPZ.

In 1990, the Kenya Government invited the African Development Bank (ADB) group to undertake a study on the viability of a publicly developed EPZ site in Mombasa . The study was completed in July 1993.

Kipevu EPZ was designated as an EPZ on 19 th September 1996 and covers 48.84 hectares on plot T/VI/3842. Kipevu will provide full infrastructure (water, sewerage, roads, drainage, power lines and telephone services). In the original design,18 hectares are earmarked for service plots, which provide 72,000 sq metres of industrial space. 12 industrial buildings are to buildings are to built to cater for the first group of investors. Both plots and buildings will be leased to investors.

In total, the Kipevu EPZ project was estimated to cost US$18 million and funds for this have been requested from the ADB/ADF group with the Government of Kenya providing some co- financing.

EPZA invites proposals from industrial park development consortia to lease the land and develop infrastructure for the zone use by EPZ enterprises.