Kazakhstan announces plan to build 42 prison production hangars in 2026
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Kazakhstan's Committee of the Criminal Executive System announced a plan to build 42 production hangars in penal institutions in 2026 to increase convict employment. Convicts are already engaged in light industry, woodworking, UAV production, medical goods, and construction materials, with an average monthly wage of about 85,000 tenge. The Ministry of Industry and Construction separately reported 19 construction materials plants launched since the start of 2026 and 29 more planned by year-end.
Prison Production Plan
Kazakhstan's Committee of the Criminal Executive System and state enterprise RGP Enbek have developed a 2026-2027 plan to modernize prison production facilities, expand RGP Enbek's own output, and automate processes. Under the plan, 42 production hangars will be built in penal institutions in 2026. Kazinform reported that existing prison workshops produce light industrial goods, wood products, UAVs, medical supplies, and construction materials. Food production lines for juices, dairy, and canned goods are also being organized. The average monthly wage for working convicts in 2026 is about 85,000 tenge.
Construction Materials Pipeline
The Ministry of Industry and Construction said 19 construction materials plants launched in Kazakhstan since the start of 2026, with about 50 billion tenge in investment and over 1,000 permanent jobs created. Kapital.kz reported that 29 more enterprises are to be launched by year-end, bringing the total to 48 new facilities with 202.2 billion tenge in investment and more than 3,500 jobs. Domestic producers now account for over 70% of the internal construction materials market, with more than 3,000 enterprises operating in the sector. Kazakhstanskaya Pravda listed planned products including stair flights, sewer rings, heating main trays, microcalcite, modular greenhouse structures, soil stabilizer, and artificial marble.
Social Enterprise Incentives
Businesses that employ prisoners are classified as first-category social entrepreneurs, giving them access to state support measures, according to Kazinform. They can receive interest rate subsidies on loans through the Damu Fund and non-repayable state grants. The new Tax Code sets a fixed base tax rate of 4% for social entrepreneurs applying a special tax regime. Under the Unified Comprehensive Business Support Program, loan interest rates for social entrepreneurs are subsidized to 7-8% annually for loans up to 1.5 billion tenge.
What's Next
Implementation schedules for the 42 prison hangars are expected to be finalized by the Committee of the Criminal Executive System and RGP Enbek before the end of 2026. It remains unclear how many additional convicts will be employed or whether all 29 construction materials plants will be launched by the year-end deadline.
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Kazakhstan announces plan to build 42 prison production hangars in 2026
