Barring last minute changes, there would be no taxes or custom duties for businesses or imports carried out within Kenya ’s special economic zones (SEZs). This in a bid to attract investment into those zones.
‘‘The new regulations would provide clarity on the operations of various actors, including to guide the movement of people, goods and services within the special economic zones,” Kenya’s Industrialisation ministry said in a notice
Here is All You Need To Know
- Presently, some draft regulations which would simplify rules on its existing tax holiday incentives for investors looking to build facilities in Kenya ’s special economic zones, have already been put by the Industrialization ministry.
- The regulations, among other things, propose that Kenya’s government will grant investors a tax break based on the size of their investments.
“No customs import duties or other charges shall be applied to the import of any goods or services to a special economic zone,” they read in part.
“No trade-related restrictions, including quantitative restrictions, shall be applied to the import of any goods or services to a special economic zone.”
- According to the draft rules, Special Economic Zones enterprises shall not be subject to minimum export requirements, minimum quotas or minimum quantitative restrictions when selling the goods originating in the areas, whether to other areas outside or within the customs territory.
- The proposed rules are expected to undergo public participation from January 10.
A Quick At What Special Economic Zones Mean
The Special Economic Zones are designated areas within a country that are mapped out with the aim of promoting and facilitating export-oriented investments.
In July 2019, Kenya’s government designated 9,000 acres of land in Naivasha, Mombasa and Machakos as SEZs in efforts to boost manufacturing.
Trade and Industrialisation Cabinet Secretary Peter Munya gazetted the zones meaning they enjoy special tax and infrastructure that facilitate a wide range of activities such as storage, export and re-export.
Recently, local and foreign investors have been seeking licences in Kenya to put up 100 SEZs, according to the Industrialisation Ministry. The ministry earlier said the applications are being scrutinised, with priority given to those eyeing production with locally produced raw materials.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world