The International Committee of the Red Cross (ICRC) further rooted its presence in Nairobi through the Nairobi Gate Industrial Park – the first Special Economic Zone in East Africa with a fully integrated customs control area. The ICRC’s Logistics Support Center in Nairobi, now benefiting from the SEZ status, is poised to transform the speed and effectiveness with which aid reaches those in need.

Kenya's vision for industrialization and economic growth has found a powerful ally in the Special Economic Zones (SEZ) initiative, and at the heart of this transformation stands the largest ICRC Logistics Support Center located in Nairobi (Nairobi LSC). As a pioneering hub under the SEZ scheme, LSC Nairobi is redefining logistical efficiency, empowering humanitarian efforts, and setting a new benchmark for global aid operations.

The story begins in late 2023, when after extensive negotiations with Kenyan officials, the ICRC established its bonded warehouse within the Nairobi Gate Industrial Park. This strategic location and SEZ status have unlocked unprecedented benefits for the organization’s humanitarian efforts.

“This is a strategic move which marks a major advancement in the efficiency of aid distribution,” says Mauro Enzo Iacona, Head of Nairobi LSC. “We’re now able to respond faster and more efficiently to crises, thanks to the streamlined processes and tax incentives provided by the SEZ.”

The advantages are numerous: tax exemptions, simplified administrative procedures, and the ability to store, repack, kit/assemble and dispatch aid materials without time restrictions unlike, goods imported under transit / bonded warehouse. Perhaps most importantly, import timelines have been slashed by an impressive 50%.

The ICRC’s presence in the Nairobi Gate Industrial Park aligns with Kenya’s development goals and demonstrates the expanding potential of SEZs in global aid efforts. Under the Special Economic Zones Act No.16 of 2015 (SEZA), various sectors can operate within SEZs, including industrial parks like the one housing the ICRC’s warehouse. This strategic positioning allows the ICRC to leverage the benefits of the SEZ while contributing to Kenya’s economic growth.

To fully appreciate the SEZ’s advantages, it’s important to compare it with two other customs regimes commonly used to facilitate the clearance of humanitarian goods in Kenya: Transit (without collecting taxes) and home use (tax exemption). The SEZ, with its streamlined processes and tax incentives, offers a more efficient and cost-effective solution for importers and exporters.

Nairobi hub Transport and Customs experts Isabell Maina and Abraham Omonya explain that the import customs transit procedure allows goods to pass through Kenya to other foreign destinations, and the goods can also be stored in transit go-downs under customs control. “However, the transit procedure formalities are restrictive, mainly due to the limited 30-day transit period, administrative bottlenecks in repacking and kitting, and the change of regime processes. Similarly, while home-use imports are exempted from taxes, obtaining all necessary permits can be lengthy and not aligned to the operational requirements for agile emergency logistics activities undertaken by ICRC humanitarian”, says Isabell. These challenges underscore the need for a more efficient customs regime that SEZ provides.

With streamlined processes, reduced administrative bottlenecks, and tax incentives, the SEZ offers a more efficient and cost-effective solution. This enables the Nairobi LSC to be even better equipped to respond to global humanitarian emergencies in a timely manner. As the first humanitarian organization to operate under the SEZ scheme, the ICRC is paving the way for a new era in aid logistics. The Nairobi hub is not just a warehouse; it’s a beacon of hope, ensuring that life-saving supplies reach those in need faster than ever before.

With this innovative approach, the ICRC is not only enhancing its own capabilities but also setting a new standard for the entire humanitarian sector. As conflicts and crises continue to challenge our world, the Nairobi LSC stands ready, a testament to human ingenuity in the service of compassion.