We are streamlining our laws to strengthen Kenya’s position as an attractive investment destination by creating a more efficient, predictable, and competitive business environment.
Assented to the Income Tax Bill, the Special Economic Zones (Amendment) Bill, and the Technopolis Bill at State House, Nairobi.
The Income Tax Act seeks to rationalise the administration of Capital Gains Tax and align Kenya’s tax regime with international best practice and principles of taxation, while reinforcing the gains made in improving the ease of doing business.
The Special Economic Zones Act seeks to enhance Kenya’s competitiveness by expanding the scope of special economic zones to include oil and gas zones, and harmonising the tax incentives applicable to entities undertaking activities within the zones.
The law also strengthens the special economic zones framework by aligning it with the operational realities of large-scale capital investments through the provision of a minimum licence tenure of 10 years to accommodate long project cycles associated with such investments.
The legislation further expands the scope of special economic zones to support strategic sectors of the economy, including agro-processing, manufacturing, mining, advanced technology production, and petroleum operations.
The Technopolis Act establishes a comprehensive legal framework for the creation, development, and governance of technopolises in Kenya.
The law seeks to position Kenya as a leading destination for technology-driven enterprises, innovation, and research by establishing integrated one-stop hubs for the efficient delivery of government services.
The framework is expected to attract global investment, talent, and innovation while accelerating Kenya’s transition into a knowledge-based digital economy.
