Kenya eyes industrial transformation as Sh2.6tn projects take shape

From a massive petroleum refinery in Lamu to factories producing electric vehicles, Kenya is positioning itself for a major industrial shift, with proposed investments worth trillions of shillings expected to reshape production, create employment and open new business opportunities.

The government is pursuing an ambitious plan to attract international capital into manufacturing, energy, infrastructure and technology, betting that large-scale projects will help reduce dependence on imported goods while strengthening Kenya's position as a regional investment centre.

At the heart of the strategy are investments linked to Nigerian billionaire Aliko Dangote, electric mobility developer Endelevu Enterprise Corporation and a growing number of businesses seeking to establish operations in Special Economic Zones (SEZs).

Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui says the growing interest from investors reflects efforts by the administration to improve the country's business environment through policy changes, legislative adjustments and institutional reforms.

“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.”

Figures from the ministry show that foreign direct investment (FDI) into Kenya climbed to an unprecedented $3.2 billion, approximately Sh414 billion, in 2025.

The amount was the highest ever recorded for the country in the United Nations Conference on Trade and Development's World Investment Report, pointing to increased foreign capital flowing into the economy.

The number of foreign businesses entering the Kenyan market has also continued to rise. A total of 671 companies registered between 2023 and the time of the ministry's 2026 update.

The registrations included 181 companies in 2023, 189 in 2024 and 202 in 2025, with another 99 firms having registered by the time the report was prepared in 2026.

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

The proposed facility is expected to process as much as 700,000 barrels of crude oil per day, giving it the potential to strengthen petroleum supply and energy security across Kenya and the wider East African region.

The project is also projected to support approximately 60,000 direct and indirect jobs, with opportunities extending beyond the refinery to local businesses involved in construction, engineering, transport, logistics and manufacturing.

Its construction phase is expected to consume about one million tonnes of cement and concrete products, creating substantial demand for locally produced building materials.

The planned industrial complex will also extend into other areas of production, including petrochemicals, fertiliser and packaging, with the government hoping the additional activities will attract more investors and encourage local processing.

Away from the petroleum sector, the government is also pursuing a Sh389.4 billion electric mobility project proposed by Endelevu Enterprise Corporation, an enterprise and strategic project developer.

The investment is expected to establish large-scale vehicle manufacturing operations, with annual production targets of 50,000 four-wheel vehicles and 100,000 two-wheelers and light-mobility vehicles.

The plans also provide for the installation of 1,000 solar-powered charging hubs to support the electric mobility network.

The Investments, Trade and Industry Ministry says it will help facilitate the venture by identifying suitable locations for its operations, including possible industrial facilities within Special Economic Zones and manufacturing space in Nakuru.

“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 keen to ensure that the proposed ventures move beyond investment announcements and deliver measurable economic benefits through actual industrial activity and employment.

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

The investment campaign has gained momentum following the Kenya International Investment Conference held in Nairobi in March this year.

Six months after the meeting, the ministry was monitoring 20 proposed investments valued at a combined $2.88 billion, with the projects expected to generate approximately 63,240 jobs across 10 counties.

The government is now looking to use the growing investor interest and the expansion of Special Economic Zones to attract more manufacturing enterprises and encourage the establishment of industries across different parts of the country.

Through the proposed projects, the State hopes to expand Kenya's production capacity, create new employment opportunities and build stronger links between large investors and local suppliers.