Chinese tyre manufacturer Shandong Linglong Tire Co recently signed a US$800 million investment agreement to build a new tyre factory, Kenya’s Ministry of Investment, Trade and Industry recently announced. The facility will be situated in the Mombasa Special Economic Zone (SEZ) in Kilifi County’s Mariakani area.
The project is expected to enhance local supply chains and strengthen the country’s status as a global industrial hub, creating more than 1,500 jobs.
Kenya’s government is leveraging its 2023–2027 Strategic Plan to attract foreign direct investment, with a goal of boosting FDI from US$500 million to US$10 billion by 2027. To achieve this, the country is implementing targeted reforms in economic zones, investment products, and stakeholder governance. It is also introducing tax incentives, such as removing VAT on exported services and providing relief for start-ups.
The Kenyan tyre market was valued at approximately US$30 million in the first quarter of 2024. By manufacturing tyres domestically, Kenya aims to reduce its reliance on imports and help narrow its trade deficit.
This development finalises high-level discussions that began earlier in the year between Kenyan President Ruto and Linglong’s Chairman, Wang Feng. The national government has pledged its full support, promising a package of attractive incentives designed to secure investor confidence and ensure the project’s success. Beyond immediate employment, the government highlights that the factory will serve as a catalyst for Kenya’s broader industrialisation goals, with Special Economic Zones acting as powerful engines for economic growth and continental investment.