Kenya seeks local, foreign investment in blue economy through new policy

KISUMU, Kenya, Nov 13 – The government is seeking to attract local and foreign investment into Kenya’s maritime sector through a proposed policy offering fiscal and non-fiscal incentives to unlock the potential of the blue economy.

The draft Kenya Maritime Investment Policy and Incentives Regime was presented to stakeholders in Kisumu on Friday during a public participation forum organised by the State Department for Shipping and Maritime Affairs in collaboration with the Kenya Maritime Authority (KMA).

The proposed framework seeks to coordinate investment across the maritime industry, with incentives targeting activities ranging from fisheries and port operations to shipbuilding, maritime transport and green energy.

Joseph Kabeku, KMA Director of Maritime Trade and Development, said the policy was intended to position Kenya as an attractive destination for domestic and foreign investors by bringing different activities in the sector under one framework.

“The policy seeks to make Kenya an attractive destination for both domestic and also for foreign investors,” said Kabeku.

The proposed incentives include capital allowances, Value Added Tax exemptions and relief from railway development levies and import declaration fees.

Non-fiscal measures will include infrastructure development, streamlined documentation, improved operational procedures and reforms to the legal and regulatory environment governing maritime investments.

The policy covers fisheries, ports, maritime transport and logistics, shipbuilding, ship repairs and recycling, container manufacturing, ship bunkering, maritime education and training, safety and security, as well as green energy.

Gideon Mwangi, Director of Planning at the State Department for Shipping and Maritime Affairs, said the framework was being developed to tap into Kenya’s underutilised marine and inland water resources.

He said the blue economy was a priority under the country’s development agenda, with the maritime sector offering opportunities in fisheries, transport, logistics and related industries.

“So this policy comes in handy to attract investments,” said Mwangi.

He cited Kenya’s approximately 640-kilometre coastline and extensive Exclusive Economic Zone as key investment opportunities, alongside inland water resources including Lake Victoria, Lake Naivasha and Lake Baringo.

Kenya’s inland waters cover approximately 10,700 square kilometres, Mwangi said, adding that they hold significant potential for fisheries, minerals and other economic activities.

“These areas have huge resources. We have fish. We have minerals. We have other resources that have not been exploited to date,” he said.

Mwangi said the proposed incentives would cater for both large-scale investors and small-scale operators, including fishermen who need affordable equipment such as fishing nets.

He also identified access to financing as an important consideration in enabling different players to participate in the maritime economy, singling out Beach Management Units (BMUs) as key stakeholders in shaping the policy.

The government is seeking views from different groups, including women, young people and persons with disabilities, before finalising the document.

The Kisumu forum forms part of a nationwide public participation exercise targeting counties whose economies depend on marine and inland water resources.

Mwangi said consultations had already been held in Lamu, Kwale, Mombasa, Kilifi, Nakuru and Naivasha, with Kisumu among the areas being covered before the final engagement in Turkana.

Stakeholders have been invited to submit written memoranda through channels provided on the websites of the State Department for Shipping and Maritime Affairs and the Kenya Maritime Authority.

The views collected during the consultations will inform the final policy draft.