WHY INVEST IN KONZA TECHNOPOLIS
Konza Technopolis Special Economic Zone represents a strategic opportunity to invest in the growth of the ICT sector in Kenya as well as the country’s overall economy. When completed, Konza Technopolis will be a world-class technology hub, home to leading companies in education, life sciences, telecom, and BPO/ITES. Commercial space for these uses will be complemented by diverse residential neighborhoods, hotels, a variety of retail offerings, community facilities, and other public amenities. Konza Technopolis will be a walkable city, one that includes high-quality public spaces, active and varied amenities, and short commute times between destinations.
Konza Technopolis offers excellent connections within Kenya and the rest of the world through land and air. Konza is located 60 kilometers from Nairobi, Kenya’s capital and largest city. The A109 highway connects Konza to Nairobi, Jomo Kenyatta International Airport, and Mombasa, the primary port of entry to East Africa and Kenya’s second largest city. Konza’s world class infrastructure, high connectivity, active public realm, and cosmopolitan environment will allow companies to attract top talent and companies to the region.
AMENITIES KONZA WILL OFFER
Two roadways will provide access to Konza Technology City. Phase 1 will include one interchange with the A109, with two to three more interchanges proposed for future phases. Konza Road will run through the City and provide access to the west side of Konza. Within Konza, a system of attractive, multimodal boulevards will provide access to all uses.
WATER & WASTEWATER
Konza Technopolis is committed to sustainable water use. Konza will lay out a water reuse system, which will include a tertiary treatment plant where treated water will be used for irrigation and cooling. All buildings in Konza will be required to incorporate the latest water management systems in their designs. Other water sources will include an allocation from the Thwake Dam, currently under development, and on-site groundwater.
Konza Technopolis will be a walkable, bikeable, and transit-friendly city. A bus transit network will provide service along the main east-west axis in Phase 1, and will be extended in future phases. A transit hub next to the A109 interchange will be the primary station for Konza, with interim capacity to accommodate bus passengers and future capacity to accommodate commuter rail service to Nairobi.
Residents and businesses located at Konza Technopolis will enjoy a steady and reliable electrical supply to be provided by three independent power sources. The Technopolis will be connected to two independent distribution lines, the first being a 400kV line running 40 kilometers west of Konza and a 132 kV line running adjacent to Konza. On-site solar power generation is also under consideration.
KONZA TECHNOPOLIS SPECIAL ECONOMIC ZONE INCENTIVES
The Technopolis’ strategic location will allow the city to be directly connected to all four underwater fiber optic cables in Kenya. These high capacity lines will ensure high connection speeds, allowing companies and residents to enjoy video, data, and voice internet capabilities. The city’s privileged location also ensures access to any further improvements in Kenya’s fiber optic infrastructure.
Konza is a Special Economic Zone (SEZ) and therefore investors enjoy incentives as stipulated in the SEZ Act of 2015 (www.sezauthority.go.ke). The Authority is in possession of the following licenses:
• Developer license: KoTDA has been licensed to undertake the development and management of integrated infrastructure facilities including master planning horizontal infrastructure, water, electrical, mechanical, building, ICT and industrial park works under SEZ.
• Operator license: KoTDA has been licensed to undertake the business of management and operation of Konza Technopolis special economic zone which includes: Development control, marketing, tenant, and occupancy facility administration and management of rent/lease collection.
KoTDA will facilitate issuance of an Enterprise License to prospective firms to carry out activities within the Konza special economic zone.
As a SEZ enterprise licensee, one will be eligible to benefit from incentives stipulated in the SEZ Act of 2015 which include procedural, fiscal and world class infrastructure.
|TAX HEAD||TAX CHARGE|
|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.|
|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.|
NON FISCAL (TAX) INCENTIVES
Exemption provided under the SEZ Act include:
- Exemption from rent and tenancy controls.
- The provisions of the Foreign Investments and Protection Act relating to certificate for approved enterprise.
- The provisions of the Statistics Act. An Act of Parliament to provide for the establishment of the Kenya National Bureau of Statistics for the collection, compilation, analysis, publication and dissemination of statistical information, and the co ordination of the national statistical system, and for connected purposes.
- Exemption from the payment of advertisement fees and business service permit fees levied by respective County Governments’ Finance Acts.
- Exemption from general liquor licence and hotel liquor licence under the Alcoholic Drinks Control Act, 2010.
- Exemption from manufacturing licence under the Tea Act.
- Exemption from filming licence under the Films and Stages Plays Act.
- The licenced SEZ enterprises shall be entitled to work permits of up to 20% of their full-time employees.