In a major win for Kenya’s industrialization agenda, KCB Group PLC and the African Export-Import Bank (Afreximbank) have signed a landmark Memorandum of Understanding (MoU) to provide US$ 800 million in financing and trade facilitation support for investors operating in the Vipingo Special Economic Zone (SEZ) in Kilifi County.
The agreement, unveiled during the Arise Integrated Industrial Platforms (Arise IIP) – Kenya Investment Forum 2025, represents a powerful public-private partnership aimed at unlocking affordable capital, strengthening export-oriented industries, and positioning the Vipingo SEZ as a magnet for local and foreign direct investment.
The Financing Framework
Under the deal:
- Afreximbank will commit US$ 500 million in financing,
- KCB Group will provide an additional US$ 300 million.
The funding pool is structured to support enterprises establishing operations in manufacturing, agro-processing, logistics, and value-addition industries within the SEZ. Investors will have access to a suite of tailored financing solutions, including:
- Working capital facilities,
- Project finance,
- Trade financing,
- Project preparation support,
- Guarantees, and
- Advisory services.
By combining financial muscle with strategic expertise, KCB and Afreximbank aim to reduce the barriers to entry for businesses looking to scale in the SEZ while enhancing Kenya’s attractiveness as an investment destination.
A Catalyst for Kenya’s Industrial Transformation
The Vipingo SEZ, located in Kilifi County along the Coast, is one of the flagship projects of the Special Economic Zones Authority (SEZA). Conceived under Kenya’s Vision 2030 blueprint, the SEZ is envisioned as a catalyst for industrialization, regional integration, and job creation.
The zone is designed to leverage shared infrastructure, proximity to ports, and economies of scale to attract investment in key sectors. By injecting affordable capital, the KCB–Afreximbank partnership is expected to:
- Unlock critical infrastructure within Vipingo,
- Strengthen export-oriented industries,
- Stimulate local supply chains, and
- Create sustainable jobs.
Voices from the Signing Ceremony
The agreement was formalized in a signing ceremony held on September 16, 2025, in Vipingo, and witnessed by high-profile leaders including Prof. Benedict Oramah, President and Chairman of Afreximbank, and Mr. Gagan Gupta, Founder and CEO of Arise IIP.
Speaking during the ceremony, KCB Group CEO, Paul Russo, emphasized the bank’s commitment to catalyzing Kenya’s industrial growth.
“This agreement marks a significant step in our mission to catalyse sustainable industrial growth in Kenya and across the region. 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,” Russo said.
On her part, Ms. Oluranti Doherty, Afreximbank’s Managing Director for Export Development, highlighted the strategic importance of SEZs in driving Africa’s transformation.
“Afreximbank’s mandate is to promote and expand African trade, and this partnership with KCB is a concrete demonstration of that commitment. 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,” Doherty noted.
The MoU was signed by Paul Russo on behalf of KCB Group, Oluranti Doherty for Afreximbank, and George Olaka, CEO of Arise IIP-Kenya, representing the hosting entity.
Afreximbank’s Country Programme in Kenya
The Vipingo commitment builds on Afreximbank’s broader US$ 3 billion Country Programme to Kenya, signed in May 2023. The programme seeks to accelerate development in critical sectors such as industrial parks, logistics, and trade infrastructure.
Previous funding under the programme included:
- US$ 40 million disbursed for the initial development of Vipingo SEZ,
- Financing commitments for the Naivasha Industrial Park,
- Support for the Dongo Kundu Industrial Park in Mombasa.
By pledging an additional US$ 500 million for Vipingo investors, Afreximbank is signaling confidence in Kenya’s industrialization agenda while ensuring that private sector players have the capital needed to scale operations.
Why Vipingo SEZ Matters
Strategically located along Kenya’s Coast, Vipingo SEZ is envisioned as a regional hub for trade and manufacturing, serving both domestic and international markets. Its advantages include:
- Proximity to the Port of Mombasa, Kenya’s busiest seaport and a gateway for East and Central Africa.
- Infrastructure linkages to major highways and proposed railway extensions.
- Availability of land for industrial clusters and shared utilities.
- Government-backed incentives under the SEZA framework, including tax breaks, customs exemptions, and streamlined licensing.
These features make Vipingo a prime location for industries such as textiles, agro-processing, light manufacturing, and logistics services targeting the African Continental Free Trade Area (AfCFTA) and global markets.
Private Sector as the Engine of Growth
The KCB–Afreximbank partnership underscores the growing role of strategic private sector partnerships in bridging Africa’s infrastructure and financing gaps. According to the African Development Bank (AfDB), the continent faces an annual financing shortfall of US$ 68–108 billion for infrastructure projects.
By mobilizing resources and expertise, banks and development finance institutions can complement government efforts and unlock sustainable growth.
For KCB, Kenya’s largest bank by assets, the partnership aligns with its regional strategy of supporting trade, SMEs, and large corporates with competitive financing solutions. For Afreximbank, the move reflects its continental mandate to expand intra-African trade and industrialization.
Positioning Kilifi as an Investment Magnet
For Kilifi County, the deal represents a transformative opportunity. Long seen primarily as a tourism destination, the county is now poised to diversify its economy through industrialization.
The SEZ is expected to:
- Create thousands of direct and indirect jobs,
- Stimulate demand for local raw materials,
- Encourage skills development and technology transfer,
- Uplift local communities through sustainable supply chains.
By hosting one of Kenya’s flagship SEZs, Kilifi could emerge as a key industrial corridor in the Coast region, complementing Mombasa’s logistics hub and attracting value-added investment.
Kenya’s Broader SEZ Strategy
Vipingo SEZ is part of Kenya’s broader push to develop Special Economic Zones as engines of industrialization, modeled on successful examples in Asia and the Middle East.
Other flagship zones include:
- Naivasha Industrial Park, designed to support energy-intensive industries with geothermal power,
- Dongo Kundu Industrial Park in Mombasa, positioned as a logistics and manufacturing hub linked to the port.
Together, these SEZs are expected to attract billions in investment, diversify Kenya’s economy, and create employment opportunities in line with the government’s Bottom-Up Economic Transformation Agenda (BETA).
The US$ 800 million financing framework announced by KCB and Afreximbank represents one of the most significant private sector commitments to Kenya’s industrial agenda in recent years.
By channeling affordable capital into the Vipingo SEZ, the partnership is set to accelerate industrialization, boost exports, and position Kenya as a leading investment destination in East Africa.
As Kenya continues to roll out its SEZ strategy, the success of Vipingo will serve as a blueprint for how collaborative financing, strong institutions, and investor-friendly policies can drive sustainable development and regional competitiveness.
