Tax Incentives

Tax Head Tax Charge
Corporate Tax

10% for the first 10 years after the start of operation

15% for the next 10 years

30% for the subsequent years

VAT The supply of goods or taxable services to an SEZ is perpetually VAT exempt.
Stamp Duty
Perpetual exemption from stamp duty on any executing documents on instruments relating to the business activities of SEZ enterprises, developers, and operators.
Investment Deduction  

Outside Nairobi and Mombasa counties – 150%

In other cases – 100%

This is applicable on all construction of a building and purchases/installation of machinery for use by an SEZ enterprise.

Excise Duty Excise Duty is perpetually exempt


Perpetual exemption from payment of IDF and RDL

Withholding Tax

WHT rate of 5% on all payments by the SEZ Enterprise developer or operator o\tonon-resident persons