Explore The Northern Corridor

Business Environment

Overview
Kenya is the largest and the most advanced economy in East and Central Africa; Its GDP accounts for more than 50 per cent of the region’s total and in terms of current market prices, its 2014 GDP stood at $58.1 billion. with strong growth prospects supported by an emerging, urban middle class and an increasing appetite for high-value goods and services. Kenya is open for business to well-positioned companies with strategic objectives of tapping into the growing potential of emerging markets in East and Central Africa....
Investment Incentives
Tax Incentive
Capital Allowances
These are tax incentives offered for capital expenditures. They include wear and tear allowances, industrial building deduction, investment deduction and farm-works deductions.

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Special Economic Zones
Capital expenditure on buildings and machinery for use in a Special Economic Zone shall be entitled to Investment deduction equal to one hundred percent of the capital expenditure.

Corporate taxation at rate of: 10% for first 10 years; 15%for the next 10 years.

Withholding tax rates on payments made to non-residents (royalties, interest, management fees) ? 5%; Dividends paid to non- residents by the SEZ entity, exempt from tax.


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Financial Incentive
Investment Deduction
An investor who incurs capital expenditure on building and/or machinery used for manufacture is entitled to an investment deduction equal to 100% of the cost.
For capital expenditures on building and/or machinery exceeding sh.200 million if the investment is outside Nairobi the investor can claim 150% allowance.


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Subsidy
Fiscal Incentives
Kenya Trade Network Agency (KenTrade) is a state Agency under the National Treasury that is mandated to facilitate cross border trade and establish, manage and implement the National Electronic Single Window System (Kenya TradeNet System).

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New Incentive for Testing
Testing addition of new incentive