East Africa’s largest economy to host $3B Dubai-funded industrial projects over next five years

Kenya to host $3 billion in Dubai-backed industrial and export projects over five years

Kenya has secured a landmark investment commitment as Dubai-based infrastructure developer AriseIIP announced plans to invest more than $3 billion in the country over the next five years. The funds will target three industrial and export parks — two along Kenya’s coast and a third in the Rift Valley town of Naivasha — and a local textiles firm, Rivatex, aiming to boost manufacturing capacity and exports across the East African economy.

Direct quote

“Our total investment in these projects is going to be upwards of about $3 billion,” Nikhil Gandhi, AriseIIP’s executive director in charge of special economic zones development, told Reuters on the sidelines of an investment conference. “We are looking to attract global companies from more than 14 countries globally to set up their manufacturing base here.”

Deal structure and partners

AriseIIP will fund roughly 30%–40% of the projects directly in exchange for equity, with the remainder financed via debt from development finance institutions and other lenders. The developer will partner with Kenyan lender KCB Group and Afreximbank to establish an $800 million facility designed to support companies that take up space in the new zones once they become operational.

• Investment amount: upwards of $3 billion over five years
• Equity contribution by AriseIIP: approximately 30%–40%
• Debt financing: to be sourced from development finance institutions and lenders
• $800 million support facility: to be established with KCB Group and Afreximbank
• Target sites: two coastal export zones, one in Naivasha, plus Rivatex textiles firm

AriseIIP is owned by Afreximbank’s private equity arm (FEDA), the Africa Finance Corporation, Saudi Arabia’s Vision Invest, and UAE-based Equitane Group. The developer has previously invested in Benin and Gabon; the Kenya project marks its first entry into the country. Dozens of firms from China, Lebanon and India have reportedly expressed interest in occupying the zones, though Gandhi declined to name specific companies.

Context and strategic rationale

Officials and AriseIIP executives framed the investment as part of a broader push to reposition Kenya as an industrial and export hub in East Africa. The choice of locations — coastal export zones and the Naivasha industrial area — reflects logistics and export-oriented ambitions tied to Kenya’s ports and transport links.

Gandhi also pointed to shifting global dynamics as an opportunity for African supply chains. “War in Iran and U.S. tariff hikes could actually benefit some African countries as supply chains change. People will shift value chains to this continent. In the context of where Kenya lies, I can already see a tectonic shift,” he said.

Outlook

If implemented on schedule, the projects could accelerate job creation and enhance Kenya’s competitiveness in regional and global supply chains, particularly in textiles and other manufacturing sectors. The combination of direct equity, debt financing and a dedicated $800 million support facility aims to reduce early-stage risks for incoming manufacturers and exporters. For Kenya, the deal underscores continued attraction of overseas capital and positions the country to capture new investment as global firms reassess supply chains.