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The government has designated the troubled Galana Kulalu project a Special Economic Zone, offering massive tax breaks to investors in a fresh bid to make the 1.8-million-acre scheme Kenya's food basket.
In a decisive move to breathe new life into one of Kenya's most ambitious and controversial agricultural projects, the government has officially gazetted the Galana Kulalu Food Security Project as a Special Economic Zone (SEZ). The declaration, announced Tuesday by Agriculture Cabinet Secretary Mutahi Kagwe, aims to transform the sprawling, sun-scorched land on the border of Kilifi and Tana River counties into a magnet for global agribusiness investment.
This policy shift is the government's latest attempt to answer a critical question for every Kenyan household: how to put affordable food on the table. By rebranding Galana Kulalu as an SEZ, the state is betting that generous financial incentives will finally unlock the project's potential after years of stalled progress and public frustration. For investors, this means a raft of benefits including lower corporate taxes, exemptions from VAT and customs duties, and faster, centralized approvals through a new one-stop office.
The project, which has consumed billions of shillings with disappointing returns in the past, is now positioned as a cornerstone of the nation's strategy to slash its massive food import bill. "Kenya cannot afford idle land while we are importing food," Kagwe emphasized, framing the move as a matter of national urgency. The government hopes this new status will fast-track private investment into value addition for crops like maize, edible oils, and horticulture.
The SEZ designation marks a significant pivot from past approaches. After a history marred by controversy and accusations of fund misappropriation, the government is now leaning heavily on a Public-Private Partnership (PPP) model. One private investor, Nyumba Group, has already leased 300,000 acres and invested over $50 million (approx. KES 6.5 billion) in infrastructure, creating over 3,000 jobs, according to the Ministry of Agriculture.
However, analysts remain cautiously optimistic, pointing to the mixed success of SEZs across the continent. A World Bank report notes that many such zones in Sub-Saharan Africa become enclaves with weak links to the local economy. Critics warn that without strong governance and clear benefits for surrounding communities, the project risks enriching a few large corporations while bypassing the local population. This is a particularly sensitive issue given the project's history.
For the pastoralist and farming communities of Kilifi and Tana River, the promises from Nairobi have often felt distant. While the project is expected to create employment and improve local infrastructure, historical grievances over land rights remain unresolved. In 2021, elders from the Watta and Giriama communities protested what they called illegal encroachment on their ancestral lands by the Agricultural Development Corporation, a key government partner in the scheme.
The success of this new chapter for Galana Kulalu will depend on whether these deep-seated issues are addressed. The government has previously stated that local farmers will be allocated land within the scheme, but the mechanism for this remains a subject of intense scrutiny. The project's ultimate test is not just whether it can grow crops at scale, but whether it can share the harvest's benefits equitably with the people who call this land home.
While the SEZ status provides a powerful new tool to attract capital, the ghost of Galana's past looms large. As one investor begins harvesting maize with yields reportedly higher than the national average, the nation watches, hopeful but wary. The coming months will reveal if this is truly a turning point for Kenya's food security or just another expensive experiment on the long road to self-sufficiency.
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