KONZA TECHNOPOLIS SPECIAL ECONOMIC ZONE BENEFITS AS PROVIDED FOR BY SEZA
Corporate tax
10% for the first 10 years after start of operation.
15% for the next 10 years.
30% for the subsequent years.
VAT
The supply of goods or taxable services to an SEZ is perpetually VAT exempt.
Stamp duty
Perpetual exemption from stamp duty on any executing documents or instruments relating to the business activities of SEZ enterprises, developers and operators.
Withholding Tax
WHT rate of 5% on all payments by the SEZ enterprise, developer or operator to non-resident persons.
Payments to non-residents: Interest: 5% Dividend: 0% Management & Professional fees: 5% Royalties: 5%
Investment deduction
Investment deduction of 100%. This is applicable on all construction of a building and purchase/ installation of machinery for use by a SEZ enterprise.
Excise Duty
Excise Duty Excise Duty is perpetually exempt.
IDF/RDL
Perpetual Exemption from payment of IDF and RDL.
Right Against Expropriation
This right ensures that SEZ firms are not deprived of their property by the Kenyan government for public use
Repatriation of Capital and Profits.
This factor assures foreign investors that they will get back their investments from the host country.
Export Levy
Exports to SEZs are exempt from export levy
Income Tax
10% for the first 10 years of operation, and thereafter 15% subsequent years.
Import Declaration
Goods destined to SEZs are exempt from Import Declaration Fees.
Provision of Work Permits
All licensed firms in the zones are availed to work permits which cater up-to 20% of their full-time employees.
Procedural/Administrative Exemptions
- Exemption from rent and tenancy controls.
2.The provisions of the Foreign Investments and Protection Act relating to certificate for approved enterprise.
3.The provisions of the Statistics Act.
4.Exemption from the payment of advertising fees and business service permit fees levied by respective County Governments’ Finance Acts.
5.Exemption from general liquor license and hotel liquor license under the Alcoholic Drinks Control Act, 2010.
6.Exemption from manufacturing license under the Tea Act.
7.Exemption from license to trade in un-wrought precious metals under the Trading in Un-wrought Precious Metals Act.
8. Exemption from filming license under the Films Act.
One Stop Shop
One stop approval for permits, operating licenses and incorporation papers, on-site customs office and immigration.
Market Access
Through membership in diverse organisations such World Free Zone, companies can access a larger market framework.