Nairobi — The Cabinet has approved the establishment of Free Trade Zones in Mombasa in order to stimulate local, regional and international trade as well as investments.
According to the Cabinet, the establishment of the Free Trade Zone will attract global and local investors and Multi National Corporations (MNCs) to Kenya which will improve Kenya's global competitiveness.
"The Free Trade Zone will also open up a ready market for the wider African continent and thus spur numerous economic activities for the country," Cabinet said.
The Zone is expected to raise the country's trade volumes as well as create the much needed jobs by enabling goods to enter into the Zone duty free where traders from Kenya and the region can purchase them without having to travel to traditional destinations like Dubai, China and Japan.
"It is expected to start operations with motor vehicles, household goods and construction materials amongst others," Cabinet noted.
The Cabinet also approved the Budget Policy Statement (BPS), 2014, the Division of Revenue, 2014, and the County Allocation of Revenue Bill, 2014.
The BPS policy also contains the measures to improve power supply through production of cheaper and affordable energy. Extend access to quality social services; improve health care by undertaking reform in the sector and Scale up of social protection.