It’s a big week here in Nairobi with the American Chamber of Commerce (AmCham) Business Summit welcoming hundreds of US companies and investors to the ‘Green City in the Sun.’
The Two Rivers International Finance & Innovation Centre (TRIFIC) is one of the newest gazetted Special Economic Zones (SEZ) in Kenya. Designed to work closely with foreign companies and investors opening offices in the East African region, TRIFIC SEZ is attracting substantial interest from organizations across the globe and particularly from American companies and investors.
- •Companies looking to be domiciled at TRIFIC SEZ reap benefits from its One-Stop-Shop support which enables firms to easily obtain work permits, register locally, and apply for necessary licenses.
- •Companies within the TRIFIC SEZ ecosystem also benefit from an array of strategic benefits including regionally-competitive income, VAT, and capital gains rates.
- •TRIFIC SEZ is located within The Two Rivers ecosystem which is located within the Nairobi ‘UN Blue Zone’ giving firms easy access to world-class infrastructure including first class security; residential offerings; entertainment & shopping amenities.
When a company expands into a new market, there are countless factors to consider. Some companies will pinpoint a country whereas others will pinpoint a region and then make a decision. Some of the factors that firms consider revolve around the state of the local economy, working population, regulatory measures, and many others.
Kenya is one of the first countries foreign companies expanding into Africa consider. In his speech at the Amcham Summit this week, President William Ruto said Kenya has undertaken radical, but attractive transformation measures in the trade and investment regime, including creating Special Economic Zones.
TRIFIC SEZ is a subsidiary of Centum Investment company which is listed on both the Nairobi and Uganda Securities exchanges. Interest from companies in TRIFIC SEZ has grown rapidly as it prepares to open its inaugural North Tower building with 15,000 square meters of space. TRIFIC SEZ also offers the option of co-working spaces for companies who have this requirement.
Special Economic Zones (SEZ) in Africa
Special Economic Zones (SEZ) have been gaining popularity in Africa among businesses, investors, and regulators alike. Without changing the regulation governing an entire country, SEZs enable regulators to set aside geographic areas to have different business regulations and taxation policies from the remainder of the country.
According to the 2021 African Economic Zones Outlook, at the time there were a registered 200+ SEZ across 47 different countries. Regulators are quickly discovering how SEZ can be used to heighten their regional and Pan-African business competitiveness. Nigeria, Ghana, South Africa and many others have capitalized upon the attractiveness of SEZs as investment destinations.
TRIFIC’s Unique Approach
While most SEZs focus on industries such as import and export, manufacturing, etc., TRIFIC SEZ remains unique in Kenya and much of Africa with its business service-sector focus. Analysts cite Kenya’s business services sector as having one of the most significant growth opportunities when compared to other sectors.
The global business services sector, as defined by TRIFIC SEZ, includes Business Process Outsourcing (BPOs); Information Technology Outsourcing (ITOs) ; Creative Media and Content Management Outsourcing. Other entities that may consider being domicile at TRIFIC include those involved in Technology and Innovation; Financial Services and Investment Management; Technology and Innovation; Corporate Headquarters and Shared Services as well as Professional Advisory Services. TRIFIC SEZ also houses an Innovation Hub for technology startups innovating across industries in FinTech, PropTech, HealthTech, eCommerce, and many more spaces.
If you are looking to set-up a business in Kenya or expand your offices into the Republic, it would be prudent for one to look at all the opportunities Kenyan SEZs offer. The decision to set-up in an SEZ versus in a general area could define the future of your company.
