Eight counties are on course to have their County Aggregation and Industrial Parks (CAIPs) operational and commissioned before the end of 2026, after Deputy President Kithure Kindiki ordered faster completion of the remaining works and immediate procurement of equipment.
The eight counties are Meru, Embu, Wajir, Garissa, Kirinyaga, Busia, Migori and Kisii, which the government says have made notable progress in developing the industrial parks.
Kindiki, who chaired a special CAIPs status review meeting in Karen, Nairobi, on Wednesday, August 26, directed the Ministry responsible for Trade and Industry and the affected county governments to agree on the remaining technical requirements within seven days.
The government will also centrally procure equipment for the eight parks, including common-user facilities, as part of efforts to move the projects from construction to actual production.
"We want to request every county to prioritize not only the construction but also the operationalization of the CAIPs as a way of making the counties competitive and also improving Kenya's competitiveness."
Kindiki said the focus must now shift from putting up the physical structures to ensuring the facilities are ready to support businesses, create jobs and add value to locally produced goods.
"There are a few things that need to be tied up, and therefore we have resolved that, in the next seven days, the Ministry responsible for Trade and Industry and the respective county governments will agree on a technical assessment of the final aspects that need to be put in place before the operationalization of the CAIPs."
He added that the government would not delay the purchase of equipment needed to make the facilities functional.
"At the same time, this meeting has resolved that the procurement of equipment for these CAIPs, including the common-user facilities, proceeds immediately." He added.
CAIPs are intended to bring farmers, processors and manufacturers together in designated industrial areas, allowing agricultural products to be processed closer to where they are produced.
The government expects the model to help reduce losses after harvest, provide ready markets for farmers, encourage local manufacturing and create employment. It will also allow counties to develop industries based on the products and economic activities found in their areas.
Kindiki said some counties had already attracted investors and operators who were ready to begin work once the facilities become operational.
"We have also noted, with a lot of appreciation, that in many of these counties, investors have already been mobilized and are ready to start operations any time from now. Those that have not finalized the mobilization of investors and operators will do so in the next few weeks."
The government also wants the industrial parks to help Kenyan businesses take advantage of markets created through international trade agreements.
"We have signed a number of international trade agreements that open market access for Kenyan products. Some of them are quota-free, meaning you can export endlessly without any quota, and tariff-free. China is one example. We also have the Economic Partnership Agreement with Europe and the EAU. So, this is the engine that will take us to where we want Kenya to go," Kindiki said.
To ensure the projects are developed and operated in a similar manner, the Ministry of Investments, Trade and Industry has prepared guidelines for counties.
"The Ministry of Investments, Trade and Industry has developed guidelines on the operationalization of County Aggregation and Industrial Parks, so there is going to be a standard way of getting these CAIPs off the ground."
Kindiki also directed government agencies responsible for key utilities and infrastructure to speed up their work at the parks.
"Finally, we have also resolved that the utility agencies of government—water, energy, housing and other infrastructure agencies—will work round the clock to provide the necessary support infrastructure, including roads, waste management facilities, electricity, water and so forth," he stated.
The Deputy President said commissioning would only take place once the facilities were ready to produce, ruling out the launch of incomplete parks.
"In the next few weeks, we are looking at eight CAIPs being operationalized and commissioned. We have said that commissioning will be done at a point where the CAIP is operational. It will not be done for a CAIP that is not producing and is not operational."
Kindiki described the parks as an important starting point for Kenya's manufacturing drive, particularly because they will support small-scale and cottage industries before they grow into bigger enterprises.
"CAIPs are the incubators of cottage industries. Talking about Busia, they intend to do cassava product processing and edible starch, as well as edible oils. Many of these things will be fed from the local production areas, and that is how you grow the cottage industries," the DP concluded.
He pointed to South Korea, Malaysia, Singapore and China as examples of countries that built their economies around value addition, manufacturing, trade and services.