Investment Incentives

Kenya offers both fiscal and non-fiscal incentives to investors. The Kenya Revenue Authority implements the issuance of the fiscal (tax) incentives in collaboration with other regulators and facilitators such as the Capital Market Authority, Export Processing Zones Authority (for issuance of the EPZ incentives), the Special Economic Zones Authority (for issuance of the SEZ incentives) among others as provided under the Income Tax Act.

At the national level, tax incentives are mainly in the form of capital deductions. These deductions are made at the point of computing the gains or profits of a company for any year of income.

These deductions are categorized into the following:

• Capital deductions

• Industrial deductions

• Farm work deductions

• Wear and Tear deductions

• Investment deductions

Enterprises that manufacture or process goods exclusively for export can enjoy additional incentives under the national Export Processing Zone and Special Economic Zone frameworks and regulations.