Kenya has adopted cluster development as part of regional and national competitiveness strategies with plans underway to develop industry clustures in strategic locations across the country. Investors can take advantage on existing arrangements with attractive incentives and simple investment procedures.
Export Processing Zones
The Kenya Export Processing Zone (EPZ) program offers a range of attractive incentives to ensure low cost operations, fast set up, smooth operations and high profitability. An effective one-stop-shop service at the EPZ Authority facilitates the investment process.
Individual EPZs are located in the capital city Nairobi, Athi River (only 25 km from Nairobi), the Indian Ocean port city of Mombasa, nearby Kilifi and Malindi along Kenya’s North coastline, Voi and Kimwarer in the country’s inland Rift Valley region. Together they are constituted under the umbrella of and managed and promoted by the Export Processing Zones Authority (EPZA).
The EPZA welcomes all export-oriented investments in the manufacturing and services industries (Business Process Outsourcing and IT Enabled Services).
Tax benefits under EPZA
Investors enjoy a range of tax benefits under EPZ including 10 year corporation tax holiday and 25% tax thereafter, 10 year withholding tax holiday, Stamp duty exemption, 100% investment deduction on initial investment applied over 20 years, Perpetual duty and VAT exemption on company input including machinery, spare parts , construction material, raw materials, office equipment, packaging, heavy diesel and fuel oil, excluding other petroleum based fuel, motor vehicles that are from outside the zone and motor vehicle spare parts.
Visit EPZA website for further information:
Kenya Industrial Estates
KIE LTD provides serviced workspace through construction of industrial estates/incubators in fast growing business centres. These facilities provide entrepreneurs with specific services to nurture and encourage growth of their enterprises to sustainable levels. Apart from flexible and affordable workspace, the enterprises within the incubators are able to access financial support for machinery, equipment and working capital, shared utility services, management and technical assistance including skills upgrading, marketing, accounting, legal, secretarial services and internet and networking.