Law on Special Economic Zones entered into force

The Law on Special Economic Zones (SEZs) entered into force on 15 December 2015. Unlike the existing Export Processing Zones, which have a narrow range of permitted activities, the SEZs have a broader scope. Licensed firms will benefit from a range of tax concessions, and a reduced corporate tax rate: instead of the standard 30 per cent rate, SEZ firms will pay 10 per cent for ten years, rising to 15 per cent for the next ten years. SEZ firms, which must be incorporated in Kenya, will also enjoy concessions on work permits for skilled expatriates. Some SEZs will offer specific benefits, such as cut-priced electricity at Naivasha, owing to the proximity of geothermal power sources. Similarly, an agro-processing SEZ may be established near a major irrigation project. Key decisions, including the award of licences, will be taken by a special SEZ authority.

• Type:

  • Promotion and facilitation (Special economic zones)

• Industry:

  • Not industry specific

• Sources:

  • The Economist Intelligence Unit, Kenya economy: Quick View - Special Economic Zones to launch, http://viewswire.eiu.com/index.asp?layout=VWPrintVW3&article_id=1493805533&printer=printer, 23 Dec 2015