The government is offering lucrative financial and tax incentives to potential investors interested in setting up shop in various Special Economic Zones (SEZs), including the recently launched zone in Naivasha, Nakuru County.
According to the Special Economic Zones Authority, investors enjoy significant tax exemptions for both local and imported goods.
For instance, on imported goods, investors and companies are exempted from paying Value Added Tax, Excise Duty, Import Duty, and Import Declaration fees.
On the other hand, when it comes to Corporate Tax, the government is offering to tax the investor's profits at a lower rate as compared to other companies located outside the economic zone.
The Authority notes that the government applies the tax at a rate of 10 per cent for the first 10 years of establishment. Usually, the Corporate Tax is set at 30 per cent.
Additionally, after the companies have reached 10 years, a new rate of 15 per cent is applied for the next 10 years before they are moved to the 30 per cent bracket.
Notably, the government is also considering lowering the country's Corporate Tax rate from the current 30 per cent to 25 per cent in the upcoming financial year. This is aimed at encouraging investors to set up shop in the country.
Factories and companies established in the zone also access cheaper power which is charged at a rate of Ksh5 per kilowatt hour.
"The SEZ will also offer state-of-the-art trans-shipment facilities to allow the seamless interchange between SGR and Meter Gauge Railways (MGR) to handle the cargo destined for EAC and Central African Countries. The SEZ comprises of an Internal container deport and a logistics zone, a Railway marshalling area and Industrial Parks," the authority advertised.
Other Incentives & Investment Areas
Other lucrative incentives offered to the investors include exemption from paying business permits which are charged by the county governments.
The companies are also exempted from the payment of advertisement fees.
Specifically for Nakuru, the government is seeking investors in sectors such as cotton, textiles, and apparel, paper and paper products, green energy, and iron and steel.
During the launch in January, President William Ruto also announced that a motor vehicle auction yard would be opened in the economic zone.
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