Stakeholders have raised concerns over a proposed Sh5 billion minimum investment threshold in the Kenya Economic Zones Bill, 2026, warning that the requirement could lock out small and medium enterprises, start-ups and innovation-driven businesses from operating in economic zones.
The concerns emerged on Tuesday during stakeholder engagements by the National Assembly Departmental Committee on Trade, Investment and Cooperatives as it considers the proposed legislation.
The committee, chaired by Shinyalu MP Bernard Shinali, is collecting views from various stakeholders before preparing its recommendations on the Bill.
Clause 36(6) of the proposed law seeks to impose a minimum investment threshold of Sh5 billion for developers, operators and enterprises seeking to operate within economic zones.
Stakeholders told the committee that the threshold was too high and could undermine efforts to attract a wider range of businesses into the zones, particularly enterprises that require lower levels of capital but contribute to employment and economic growth.
Maryanne Keitany proposed that the Bill should instead establish different investment categories, with each category assigned an appropriate minimum threshold.
“Completely removing the Sh5 billion threshold from the Bill as proposed will create a gap. It is better to have businesses categorized into tiers and have different thresholds for each tier,” Keitany said.
The proposal received backing from the State Department for Investment Promotion, which told the committee that the proposed Sh5 billion threshold could discourage small businesses and start-ups from investing within economic zones.
The State Department supported the introduction of different minimum investment thresholds based on the size and category of investments.
The Bill seeks to establish a comprehensive legal and institutional framework for the development, regulation, administration and operation of economic zones in Kenya.
One of its key proposals is the creation of the Kenya Economic Zones Authority, which would bring together the functions currently performed by the Special Economic Zones Authority and the Export Processing Zones Authority under a single authority.
The proposed merger is intended to streamline the administration and regulation of economic zones.
Committee chairperson Bernard Shinali said MPs would consider the concerns raised by stakeholders before finalising their recommendations.
“We are committed to critically examining all the memoranda and submissions received from stakeholders to ensure that all the issues raised are comprehensively addressed,” Shinali said.
“Our objective is to come up with a good law that safeguards public interests and protects employee welfare as the merger is implemented,” he added.
Among the stakeholders who appeared before the committee were TRIFIC Special Economic Zone, Tatu City, the Association of Special Economic Zones, the Central Organisation of Trade Unions, the Law Society of Kenya, the Kenya Association of Manufacturers and the Kenya Private Sector Alliance.
The Kenya Institute of Planners, National Land Commission, Kenya Revenue Authority, Special Economic Zones Authority, Export Processing Zones Authority and the State Department for Investment Promotion also made submissions.
The stakeholder consultations will inform the committee's consideration of the Bill before it makes its recommendations to the National Assembly.
