NAIROBI, May 11th -President William Ruto has assented to the enactment of three vital pieces of legislation: the Income Tax Bill, the Special Economic Zones (Amendment) Bill, and the Technopolis Bill in State House, Nairobi earlier today.
The move aims to transform Kenya’s business environment, fostering a more predictable and competitive landscape for both local and international investors.
The new Income Tax Act concentrates on streamlining the administration of Capital Gains Tax (CGT). By aligning Kenya’s tax system with international best practices, the government seeks to improve the ease of doing business.
“It will ensure tax principles are consistent with global standards, and provide a transparent framework for asset disposal and investment returns,” Dr Ruto emphasised.
To strengthen industrial growth, the Special Economic Zones (SEZ) Act has been amended to reflect a strategic shift towards long-term industrial stability.
He highlighted that the law now supports the substantial capital requirements and long development cycles of major projects.
Key amendments to the SEZ framework include extended licensing through a minimum 10-year license period, offering security for large-scale investments.The SEZs will now broaden to include oil and gas zones, alongside sectors such as agro-processing, mining, and advanced technology.
“It will have harmonised incentives, unified tax benefits for all entities operating within these zones to eliminate administrative friction.”
To facilitate Kenya’s move into a knowledge-based economy, the Technopolis Act establishes a formal legal framework for the development and governance of “tech cities.””
The law aims to position Kenya as a leading destination for technology-driven enterprises, innovation, and research by establishing integrated one-stop hubs,” President Ruto stated.
These hubs will serve as one-stop shops for government services, designed to attract global tech talent and cultivate a thriving ecosystem for research and development (R&D).
