South Sudan breaks ground on logistics hub in Kenya's Mai Mahiu economic zone

South Sudan has broken ground on a logistics hub inside the 6,000-acre Mai Mahiu Special Economic Zone in Kenya, the Kenya News Agency (KNA) reported on 10 October. The hub is meant to ease cargo handling and transport from the Port of Mombasa to Juba.

South Sudan's ambassador to Kenya, Simon Juach Deng, said the hub should start operations by 2028, according to KNA. He said the zone will serve as an alternative dry port for cargo clearance, and that once the hub is running it will offer timely cargo transport and efficient goods haulage from Kenya to Juba.

Geoffrey Ruku, Cabinet Secretary for Public Service and Human Capital Development, represented the Transport Cabinet Secretary at the ceremony, KNA said. Mwanzo TV reported on 8 October that Ruku officiated and quoted him as saying Kenya "continues to invest heavily in infrastructure, especially in the Northern corridor as a key driver for growth".

Mwanzo TV said cargo for South Sudan arriving through Mombasa will go by rail to Naivasha for clearance and onward transport. It described South Sudan as the first country to invest in the Naivasha special economic zone's logistics zone.

Dr Kenneth Chelule, chief executive of the Special Economic Zones Authority, said Kenya has allocated a free 10-acre plot to regional countries, KNA reported. It listed Uganda, Rwanda, South Sudan, Burundi and the Democratic Republic of Congo. Chelule said South Sudan is the first to break ground, and that Rwanda and Burundi are on course to start operations at the zone.

Chelule said the zone has so far attracted 24 investors. He said the authority has received KSh 600 million from the exchequer for supporting infrastructure, including water and power connections and link roads.

He also set out the tax incentives on offer: corporate tax of around 10 per cent for the first 10 years, 15 per cent for the next 10 years and 30 per cent after that, according to KNA. Chelule said the zone will be a key investment hub in the next two years, with planned housing units, commercial centres, schools and health centres.

Paul Dhel Gum, South Sudan's undersecretary for transport, called the zone a key economic gateway, as quoted by KNA. He said Juba is also seeking additional land in the special economic zones in Mombasa and in Malaba, Busia. Mwanzo TV reported that Gum asked Kenya to consider South Sudan's request for facilities in Mombasa, linked to its blue economy investments.

Dr John Deng Diar Diing, Executive Secretary of the Northern Corridor Transit and Transport Coordination Authority, said cargo handling at the Port of Mombasa is expected to rise from the current 15 million metric tonnes a year to 40 million metric tonnes in the next five years, KNA reported.

Mwanzo TV said Kenya gave land and issued titles to Uganda, the Democratic Republic of Congo, Rwanda, South Sudan and Burundi in 2022, and that the Naivasha dry port is one of five to be built by Northern Corridor countries.