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Kenya’s Investment Environment
Since the early 1990’s the Kenya Government has been running various schemes with the aim of encouraging investment and production for exports. The schemes offer both fiscal and infrastructural benefits to business community. The government continues to improve the investment environment. Some of the policy initiatives include:
  • Liberalising the exchange controls
  • Removing price controls
  • Freeing the shilling exchange rate to be market driven
  • Abolishing import licensing except for cases that impact directly on national security, health, environment etc.
  • Opening up of the capital markets to foreign participation
  • Generous Investment and capital allowance
  • Remission of duty and Value Added Tax (VAT)
  • Manufacture under Bond status
  • Export processing zones status
  • Double taxation agreements
  • Protection and promotion of investment agreements
  • Bilateral investment treaties
  • Multilateral Trade agreements

There are opportunities in the agricultural, industrial, and commercial sectors e.g. Horticulture, Agro-processing, Textiles and Apparels, Plastics and Pharmaceuticals, Tourism, Financial and other services
Kenya provides guarantees to local and foreign investors. These include guarantee against expropriation, repatriation of capital and profits. It is also a member of Multilateral Investment Guarantee Agency (MIGA).
Duty Remission Facility

Materials imported for use in manufacturing for export; the production of raw materials for export; or the production of duty free items for sale domestically, are eligible for duty remission. Applications for this facility should be made to the Tax Remission for Export Office (TREO) administered by the Ministry of Finance. More information on this may be accessed through the Ministry’s website
Manufacture Under Bond
To encourage manufacturing in Kenya for export to the world market, the Government established the Manufacture Under Bond (MuB) programme that is open to both local and foreign investors. Enterprises operating under the programme are offered the such  incentives like exemption from duty and value-added tax (VAT) on imported raw materials and other imported inputs, in addition to 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 (KIA) and administered by the Kenya Revenue Authority.  For more information, please visit the KIA website on
Export Processing Zones Programme
The Export Processing Zones Authority (EPZA) coordinates operations of Export Processing Zones (EPZs). The Government has put incentives in place to encourage the development of private EPZs.  A number of these are already been established and operational from where some of the leading export products in Kenya are manufactured. Enterprises operating in these zones 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. More information on investment is available at
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