Kenya targets industrial boom with Sh2.6tn investment pipeline

Investments, Trade and Industry CS Lee Kinyanjui speaks during the KEPSA Presidential Round Table at KICC, Nairobi/HANDOUTKENYA is banking on major industrial investments, policy reforms and the expansion of Special Economic Zones to strengthen its position as a regional investment hub.

This, as the government seeks to turn investor commitments into factories, jobs and export earnings.

According to the Investments, Trade and Industry Ministry, investor confidence remains strong, pointing to major projects involving Nigerian billionaire Aliko Dangote, electric mobility investor Endelevu Enterprise Corporation and a growing pipeline of enterprises in the country’s Special Economic Zones.

Cabinet Secretary Lee Kinyanjui attributes the growing interest to reforms aimed at improving the business environment and positioning Kenya as a competitive destination for international capital.

“Investor confidence in Kenya remains strong as demonstrated by major investments, from Dangote and Endelevu to the growing pipeline of enterprises in our Special Economic Zones,” Kinyanjui said.

“This confidence reflects the conducive business environment created through deliberate policy, legislative and institutional reforms under the leadership of President William Ruto.”

The ministry’s latest investment update shows foreign direct investment (FDI) inflows reached a record $3.2 billion (about Sh414 billion) in 2025, the highest level recorded for Kenya in the United Nations Conference on Trade and Development’s World Investment Report.

The country has also registered 671 foreign companies since 2023, comprising 181 in 2023, 189 in 2024 and 202 in 2025. A further 99 companies had registered by the time of the ministry’s report in 2026.

Kenya’s investment drive is increasingly anchored on large-scale manufacturing, energy, infrastructure and technology projects, with the government seeking to deepen local production and reduce dependence on imported goods.

Among the biggest proposed investments is the Sh2.2 trillion ($16 billion) Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone in Lamu.

The project is designed to process up to 700,000 barrels of crude oil daily, potentially strengthening energy security in Kenya and the wider East African region.

It is expected to create approximately 60,000 direct and indirect jobs, while generating opportunities for local companies in construction, logistics, engineering, manufacturing and related services.

The construction phase alone is expected to require about one million tonnes of cement and concrete products, offering a substantial market for Kenyan manufacturers.

Beyond petroleum refining, the wider industrial complex is expected to support petrochemicals, fertiliser, packaging and other downstream industries, creating opportunities for additional investment and value addition.

Another major proposal is a Sh389.4 billion integrated electric mobility investment by Endelevu Enterprise Corporation, an enterprise and strategic project developer.

The proposed project targets annual production of 50,000 four-wheel vehicles, 100,000 two-wheelers and light-mobility vehicles, alongside the development of 1,000 solar-powered charging hubs.

“The ministry will support the project’s implementation through investment facilitation, including opportunities within Special Economic Zones and potential industrial space in Nakuru,” it affirms.

“The government is also seeking to demonstrate that investment commitments can translate into actual production and employment.”

Six months after the Kenya International Investment Conference in Nairobi, in March this year, the ministry has been tracking 20 investments with combined commitments of $2.88 billion and approximately 63,240 announced jobs across 10 counties.

Fifteen of the investments are already progressing on the ground.

Lucky DJX (Kenya) Co., an industrial and manufacturing enterprise operating within the Export EPZ at Konza Technopolis in Machakos county, has been delivered, with 1,000 workers already on site.

Green textile manufacturing company–Singtex has commenced production with 16 production lines operating and another 14 expected in the first quarter of 2027.

Global business solutions firm, ADEC Innovations in Machakos is also operational and expanding, while Fullcare EPZ in Kiambu has also commenced operations.

Devki Group’s $550 million (Sh70 billion) cement and clinker manufacturing project broke ground on October 27.

Other projects are at different stages of implementation. MMP Industries in Bungoma is under construction, while Bounty Global Management in Nairobi is importing equipment ahead of operations.

RVL Health Care in Nairobi was progressing towards commencement within six months. Tana River Sugar Company has planted over 72 acres of sugarcane, with another 500 acres being planted.

The ministry said other investors had secured land, joint venture agreements and regulatory approvals, highlighting the importance of investment facilitation beyond the initial announcement of projects.

“Kenya’s competitive advantage also rests on its strategic location as a gateway to East Africa and the wider African market, a stable currency, political stability and expanding infrastructure,” Kinyanjui said.

Roads, railways, ports, energy and digital connectivity are among the investments expected to improve the country’s appeal to manufacturers and international businesses.

Kenya also offers a young, educated and technology-savvy workforce, a growing fintech ecosystem and access to clean energy, alongside incentives available through Special Economic Zones, Export Processing Zones and industrial parks.

However, converting the growing investment pipeline into sustainable economic gains will depend on effective implementation, predictable regulation and sustained engagement between government and businesses, private sector players say.

The ministry says its approach is to work with investors from entry through to implementation, with the ultimate objective of ensuring investment translates into local production, technology transfer, employment and wider economic value.