Work at the Special Economic Zone (SEZ) in Naivasha has been paralysed for the last two years due to lack of government funding.

According to the parliamentary committee on Trade, Industry and Co-operatives, the industrial park needs Sh4.5B billion for the completion of access roads, water and electricity.

This came as it emerged that key investors who had shown interest on the 1,000 acre land parcel have put on hold plans due to lack of the required infrastructure and amenities.

During a tour of the facility, the committee took issue with the slow development, mainly on the 100 acres allocated to neighbouring countries and the current investors.

Committee chairman James Gakuya said lack of state funding for the capital project launched in 2018 was eroding investor confidence.

Addressing journalists, Gakuya said that despite the challenges facing the SEZ, five international investors have shown interest with some already starting work on the vast land.

“This Special Economic Zone requires Sh4.5 billion to address the issues of roads, electricity and water which are some of the main challenges facing the investors,” he said.

Gakuya said that the zones' power station would be ready by June while water connection is underway.

“We have noticed that development by the investors is very slow mainly due to lack of support from the government despite the high potential of job opportunities on this park,” he said.

The committee's vice-chair Marianne Kitany said that they would push for a Sh2.5 billion allocation to the SEZ in the next financial year so as to address the issue of access roads and electricity.

She said the park has the potential of employing over 16,000 youths once complete and welcomed the cheap electricity incentive for investors.

“We are impressed by the investors’ commitment but they have been let down by the lack of access roads, electricity and water which are crucial for production,” she said.

Special Economic Zone board chairman Ng’eny Biwott admitted that lack of funding had affected development but was quick to add that the government would address this.

“We are keen to accelerate development on these 1,000 acres with 75 percent of the land already occupied and also address all the challenges facing the investors,” he said.