Export Investment and Incentive Schemes
Three key schemes are operated to encourage exports expansion and related investments as below:

Duty Remission Facility
The government of Kenya through the Tax Remission for Exports Office (TREO), encourages local manufacturers to export their products. This is achieved through remitting duty and VAT (duty drawback) on raw materials used in the manufacture of goods for export.

Manufacture Under Bond

To encourage manufacturing in Kenya for export to the world market, the Government has established the Manufacture Under Bond programme that is open to both local and foreign investors. Enterprises operating under the programme are offered the following incentives: Exemption from duty and VAT on imported raw materials and other imported inputs; and, 100 per cent investment allowance on plant, machinery, equipment and buildings.

Bonded manufacturing enterprises can be licensed to operate within a 30 km radius of a Customs Office. This programme is facilitated by the Kenya Investment Authority and administered by the Kenya Revenue Authority.

Export Processing Zones Programme
The Export Processing Zones Authority (EPZA) coordinates operations of Export Processing Zones (EPZs). The Government encourages the development of private EPZs, and a number of them have already been established. Enterprises operating in these zones in Kenya enjoy the following among other benefits:

  • 10 year tax holiday and thereafter a flat 25 per cent tax for 10 years;
  • Exemption from all withholding taxes on dividends and other payments to non-residents during the first 10 years; Exemption from import duties on, raw materials and intermediate inputs;
  • Non restriction on management or technical arrangements; Exemption from Stamp duty; Exemption from VAT; and,
  • Operate on one license only
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