The government is undertaking amendments to the Special Economic Zones Act 2015 to align with the regional and continental frameworks, including the Africa Continental Free Trade Area.
- The changes are geared towards making Kenya’s special economic zones more attractive , competitive and globally intergrated.
- Besides undertaking the amendments of the Special Economic Zones Act 2015, Ruto said Kenya has introduced reforms to enhance the operational environment for special economic Zones.
- The Finance Act 2023 for instance introduced preferential market access for goods manufactured in special economic zones using local raw materials.
“The African Free Trade Area represents opportunity to create a tariff-free Africa, boost intra-African trade and investment, drive industrialization, and generate meaningful employment,” noted President William Ruto during the opening of the 9th African Economic Zones Organisations Annual Meeting in Nairobi.
“All these ambitions require a strategically desined ecosystem that aligns critical regulatory, institutional and infrastructural elements essential for driving industrial development, export competitiveness and trading capacity. That is why special Economic Zones are indispensable engines of growth,” he added.
The law also introduced incentives such as reduced withholding taxes for non-resident investors, alongside measuresother measures aimed at attracting foreign direct investments.
At the regional level, the East African Community has adopted a unified special economic zone policy to harmonisethe treatment of goods produced within these zones.
Recently approved EAC Special Economic Zones Regulation 2024 is aimed at ensuring free movement of goods across member states.
The annual meeting, which gathers SEZs from across the African continent, serves as a platform to exchange success stories, identify challenges, and promote greater collaborationamong African countries
“Kenya is sometimes seen as a more expensive investment destination for being ahead in setting the minimum wage standards. We encourage other nations to also set minimum wage benchmarks to ensure a level playing for all,” Principal Secretary for the state department of industry, Juma Mukhwana
