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Kenya's Export Processing Zones Authority(EPZA)

The first Export Processing Zone (EPZ) program was established in 1990 to provide an attractive investment opportunity for export-oriented business ventures within designated areas or zones. This sought to help the economy through increased productive capital investment, jobs generated, technology transferred, backward linkages developed and diversified exports.

Managed and promoted by the Export Processing Zone Authority, the scheme offers a range of attractive incentives to ensure low cost operations, fast set up, smooth operations and high profitability. An effective one-stop-shop service at the EPZ Authority facilitates the investment process.

Kenya's export Processing Zone Authority (EPZA) has been in the forefront of initiating, promoting and providing attractive investment opportunities for the export-oriented business ventures in the country. Singularly and collectively the seven Export Processing Zones (EPZs) strategically located across the country constitute an economic proposition that makes a compelling case for companies and businesses to contemplate. Kenya is a fiscally sensible destination for assured returns on their investments while engaging in planned and sustainable development of the national economy and providing employment to the country's workforce.

The EPZA has fuelled the engine of Kenya's largely overseas investment driven by implementing a range of appealing fiscal, logistical and administrative incentives to ensure lower cost operations, rapid set-up and smooth and hassle-free functioning. The individual EPZs are located in the capital city Nairobi, Athi River (only 25 km from Nairobi), the Indian Ocean port city of Mombasa, nearby Kilifi and Malindi along Kenya's North coastline, Voi and Kimwarer in the country's inland Rift Valley region. Together they are constituted under the umbrella of and managed and promoted by the Export Processing Zones Authority (EPZA)

As a catalyst for investment and economic growth, the EPZA has conceived programmes and policies that are intended to foster a bright investment for investors and further encourage them to take advantage of the numerous opportunities the country offers by virtue of its distinctive location as the 'gateway to East Africa', the investor-friendly fiscal and monetary policies, supportive political frame work, well established private sector and the entrepreneurial facilities and the social amenities and the quality of life in the country.

The EPZA welcomes all export-oriented investments but is particularly keen to develop projects and attract companies in the areas of food processing, fresh produce, packaging for shelf ready products, wooden products, leather and animal based products, jewelry and gemstones, pharmaceutical products and herbal medicines, medicinal supplies, cosmetic and personal care products, packaging products, textiles, commercial handicrafts, transport equipment, electronic and electrical goods, building materials & furnishings, data processing & audio-visual services and consultancy and professional services.

Tax benefits under EPZA

Following are the tax benefits for investors:

  • 10 year corporation tax holiday and 25% tax thereafter
  • 10 year withholding tax holiday
  • Stamp duty exemption
  • 100% investment deduction on initial investment applied over 20 years
  • Perpetual duty and VAT exemption on company input including machinery, spare parts , construction material, raw materials, office equipment, packaging, heavy diesel and fuel oil, excluding other petroleum based fuel, motor vehicles that are from outside the zone and motor vehicle spare parts.

Further investment under EPZA details can be obtained from their website: http://www.epzakenya.com.

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