Incentives

Incentives you can apply for

Unlock valuable tax benefits and make it easier to operate your business

Export Processing Zone (EPZs)
Special Economic Zones (SEZs)
County Aggregation & Industrial Parks (CAIPs)

By investing in an export processing zone, you gain access to one of 105 zones spanning more than 6,000 acres, designed to simplify operations and support export-driven growth.

What you get

Major tax relief

0% corporate tax for 10 years, 25% for the next 10, then 30%

Withholding tax savings

No withholding tax on royalties, interest, or management fees paid to non-residents

Duty & tax exemptions

Excise duty, import duty, and import declaration fees are all waived

Simplified operations

One license for all EPZs activities, fast approvals, unrestricted foreign ownership, ready infrastructure, and priority goods clearance at ports

How to access

Submitting your business plan

Submit a business plan to the EPZ authority

EPZ license application guide

Apply for a developer operator, enterprise manufacturing, or business service license via the EPZ authority

Get in touch to learn more

If you invest in special economic zones, you are in one of 45 zones covering more than 9,000 acres or apply to set up your own.

WHAT YOU GET

Reduced corporate tax rate

10% for the first 10 years, 15% for the next 10, then 30%

Lower withholding tax

No withholding tax on overseas remittances for the first 10 years; dividends to non-residents are also exempt

Duty & tax exemptions

VAT, customs excise duty, and import duty on raw materials and machinery

Simplified operations

One license for all operations, expedited approvals, unrestricted foreign ownership, ready infrastructure, and priority port clearance

HOW TO ACCESS

Decide on SEZ location

Determine whether you want to establish a new special economic zone (SEZs) or operate within an existing one

Apply for required SEZ license

Apply for a developer, operator, or enterprise license through SEZ authority

Get in touch to learn more

You can invest in one of the 13 parks under development for agro-processing across the country

What you get

Fiscal and tax incentives

Preferential corporate tax rates, VAT and import duty exemptions, investment deductions on buildings and equipment, and withholding tax holidays for eligible investors

Infrastructure and operational readiness

Access to purpose-built industrial sheds, bulk electricity, water and sewerage systems, and government support to reduce setup risk and speed up operations

Lower investment and operating costs

Affordable or long-term leased county land, subsidized utility tariffs, and access to concessional financing and de-risking facilities for CAIP projects

Strategic value chains and market access

Location within priority value chains agro-processing, dairy, leather, textiles, tea, and edible oils with strong links to highways, the SGR, and domestic, regional, and AfCFTA markets

How to access

Choose your investment path and location

Select your role within the CAIP and your preferred county or park based on priority value chains and available facilities

Engage authorities and secure approvals

Work with Invest Kenya and county authorities to submit a proposal to the County Industrial Park Management Committee for approvals, incentives, and space allocation

Get in touch to learn more

Default incentives granted

Investors who fall under these categories receive the below incentives automatically

GENERIC TAX BENEFITS

There are various tax allowances and deductions aimed at lowering your tax bill, regardless of your sector of operations

Wear and tear allowance

You can claim part of the cost of machines and equipment each year, from 12.5% to 37.5%, depending on the type of asset

Investment deduction

If you build or buy machinery for manufacturing, you can deduct 100% of the cost from your taxable income. If your investment is worth over KES 200 million and is outside Nairobi, you can claim 150%

Industrial building deduction

You can deduct 10% of the cost of a factory or industrial building each year from your taxable income

Public infrastructure deduction

Spending on public projects like roads, schools, or hospitals can be deducted from your taxable income if approved by the government

VAT exemptions and zero-rating

Manufacturers benefit from VAT exemptions and zero-rating on qualifying inputs, raw materials, machinery, and locally manufactured goods, including medical products, clean energy equipment, vehicles, and electronics

SECTOR-SPECIFIC TAX BENEFITS

Additional tax allowances and deductions may apply depending on your sector of operations

Manufacturing

E-mobility

EVs and lithium-ion batteries benefit from 0% excise duty, zero-rated VAT, zero import duty, and reduced e-mobility electricity tariffs; locally assembled EVs are exempt from 20% excise and 25% import duty, with additional incentives for CKD imports, local component manufacturing, and higher levels of local value addition

Textile and apparel

Exemptions apply to excise duty, import duty, declaration fees, permit fees, stamp duty, and withholding tax, with a 100% investment allowance on buildings and machinery

Pharmaceuticals

Investors benefit from a 100% investment deduction on hospital buildings, plant, machinery, and equipment, and income tax exemptions on royalties and interest paid by human vaccine manufacturing companies

Agribusiness

VAT exemptions and zero-rating apply to selected agricultural products, while a 100% deduction is available for the cost of farm buildings and structures

ICT & BPO

Telecom equipment and business software are each eligible for a 20% annual deduction

Tourism and hospitality

Investment deductions apply to hotel buildings, and tourism packages benefit from zero-rated VAT

Default incentives granted

Investors who fall under these categories receive the below incentives automatically

Sector-specific tax benefits

Agribusiness

VAT exemptions on various agricultural products; zero-rating on certain products, reducing your tax liability

100% deduction of the cost of farm buildings/ structures from taxable income, reducing your tax burden

ICT & BPO

Telecoms

20% yearly deduction for telecom equipment

Software

20% yearly deduction for business software

Tourism and hospitality

Investment deductions for hotel buildings

Zero-rated VAT on tourism packages

Generic tax benefits

There are various tax allowances and deductions aimed at lowering your tax bill, regardless of your sector of operations

Wear and tear allowance

You can claim part of the cost of machines and equipment each year, from 12.5% to 37.5%, depending on the type of asset

Investment deduction

If you build or buy machinery for manufacturing, you can deduct 100% of the cost from your taxable income. If your investment is worth over KES 200 million and is outside Nairobi, you can claim 150%

Industrial building deduction

You can deduct 10% of the cost of a factory or industrial building each year from your taxable income

Public infrastructure deduction

Spending on public projects like roads, schools, or hospitals can be deducted from your taxable income if approved by the government