Cabinet Approves Gov't Plan To Buy 11,000 Acres Of Land In Naivasha

• The government will purchase six parcels of land in Naivasha, Nakuru county after a Cabinet approval
• President William Ruto said the land will be used for development and settling landless Kenyans
• The Cabinet also approved new guidelines governing the management and running of state corporations

Michael Ollinga is a journalist at TUKO.co.ke with over 10 years of experience covering courts and crimes, special reports, and current affairs in Kenya.

The national government has received the go-ahead to purchase 11,000 acres of land in Naivasha, Nakuru county.

Why is Kenyan government buying land in Naivasha?

The approval came after members of the Cabinet passed the resolution in a meeting that President William Ruto chaired on Tuesday, April 23.

According to a Cabinet brief that TUKO.co.ke saw, the Cabinet, Kenya's national policy organ, approved the purchase of six parcels of land in Naivasha.

The parcels of land will be used for squatter resettlement, the settlement of the landless, and development projects.

"The Cabinet also approved the purchase of six parcels totalling 11,000 acres of land in Naivasha, including 6,000 acres for settling squatters and 5,000 acres for industrial purposes," read the Cabinet brief, which, among other issues, highlighted the approval of revised guidelines on terms of service for state corporations' board members and staff.

TUKO.co.ke understands that the approved guidelines align with Ruto's directive for fiscal consolidation and management of state corporations.

Gov't to build EPZ in Naivasha

The government indicated that it was considering purchasing 5,000 acres of land at the Naivasha Industrial Park to develop an Economic Processing Zone (EPZ).

The construction of an EPZ in Naivasha county is the government's step toward matching similar establishments in Sagana, Murang'a, Busia, Nakuru, and Eldoret.

EPZ chairman Richard Cheruiyot confirmed the decision during a visit to Athi River, Machakos county.

Cheruiyot said that most investors have been demanding more EPZ space so that they can benefit from the numerous incentives associated with operating in such gazetted spaces.

According to The Kenyan Wall Street, business processing outsourcing, agro-processing, pharmaceuticals, and textile and apparel manufacturing are common components of EPZs.

What is AGOA?

The publisher quoted Cheruiyot urging Ruto to extend the African Growth and Opportunity Act (AGOA), which will end in May, to value EPZs, which export most of their products to the USA.

Kenya is a beneficiary of AGOA, which offers duty-free treatment to goods of designated sub-Saharan African countries.

The US Congress approved AGOA in May 2000 in a move to help grow Sub-Saharan Africa and improve economic relations between the US and the region.

Doug Palmer, a senior Trade reporter at Politico, earlier told TUKO.co.ke that negotiating trade deals was easier said than done, explaining that such deals take years, commitments to particular agendas like climate change and goodwill of regimes, besides state interests.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.