IN a bid to attract foreign investment and bolster its industrial sector, Kenya unveiled tax incentives for companies establishing operations exceeding KSh10 billion ($65.5 million). Abubakar Hassan, the principal secretary in the Ministry of Investments, Trade and Industry, disclosed this development during a trade forum held in Nairobi.
Speaking at the Diamond Trust Bank economic and sustainability forum, Hassan emphasised that the tailored incentives are specifically designed to encourage manufacturing projects within the country. ‘We are rolling out performance-based tax incentives to expand our industrial base,’ he affirmed, underlining the government’s commitment to fostering economic growth through strategic measures.
Under the new fiscal tax regime, qualifying firms will benefit from reduced tax rates on excise, import duty, and value-added taxes, contingent upon approval by the National Treasury. Hassan further outlined that eligible investors will be exempt from taxes on imported services or those procured domestically, signalling a concerted effort to streamline processes and enhance the investment environment.
The introduction of these incentives reflects Kenya’s proactive approach to attracting foreign direct investment and stimulating economic development. By providing a conducive fiscal environment for manufacturing activities, the government aims to harness the potential of the industrial sector, create employment opportunities, and foster sustainable growth in line with its broader economic agenda.