The Kenya Investment Authority hopes incentives under the Special Economic Zones will attract fresh foreign direct investments from India following a two-day state visit to the country by Prime Minister Narendra Modi.
Managing director Moses Ikiara said Kenya is keen on attracting pharmaceuticals, manufacturing and ICT firms to set up shop. This will help bridge the trade gap between Kenya and her second-largest source of imports, India.
Among incentives Kenya has put in place is a 100 per cent waiver on corporate tax for investment above $2.4 million (Sh243 million) until the full cost of investment is recovered.
“This is a key incentive available to investors in different sectors. The Prime Minister’s visit with a huge delegation of investors will help increase the pace of investments and trade,” Ikiara said yesterday.
Under the SEZs, investors are allowed a corporate tax relief, and will pay 10 per cent for the first 10 years instead of 30 per cent.
“The investor then pays 15 per cent for the next 10 years after which they can now pay the normal corporate tax,” Ikiara said.
The Kenya Association of Manufacturers is keen on a Preferential Trade Agreement that will allow locally made goods access Indian market duty free, with a focus on leather and textile industries.
“We are also keen to be involved in the Cotton Technical Assistance Programme whose objective is to train and expose different stakeholders to modern practices and technologies in cotton textile and apparel sector,” KAM CEO Phyllis Wakiaga said.
The value of Kenyan exports to India marginally increased 2.3 per cent in 2015 to ShSh8.9 billion from Sh8.7 billion in 2014. India’s exports, however, dropped 4.5 per cent to Sh252.5 billion from Sh264.5 billion in 2014, the Economic Survey 2016 shows. Kenya is keen on helping investors buy land from Indians developing medical facilities in the country.
Source: The Star

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