Trade and Investments Cabinet Secretary Moses Kuria has hailed the gazettement of Two Rivers International Finance and Innovation Centre as a Special Economic Zone (SEZ). The move will confer a raft of benefits of businesses operating in the 64-acre zone, which is part of the larger Two Rivers mixed use development that includes a mall, apartments and commercial spaces among other amenities.
The Centum-backed Two Rivers disclosed that it was targeting “global, regional and Kenyan service-oriented business enterprises seeking a base to access international markets competitively.”
Kuria described the gazettement as “a giant milestone in the development of Kenya’s Economic Landscape and a major boost for Africa’s global investment profile.”
Two Rivers stated that the SEZ would be the only one focused on the service sector in Nairobi. Enterprises operating in the SEZ will enjoy several benefits including various tax breaks.
Wooing businesses, Two Rivers highlighted its prime location and proximity to various amenities, as well as access to power from an in-house substation, rooftop solar panel installations, water treatment plant, data centre, and 4G/5G LTE network.
Below, Business Today looks at some of the key benefits businesses at the SEZ will enjoy;
- Tax Breaks
SEZ enterprises are not required to register for VAT. The supply of goods or taxable services to an SEZ is subject to VAT at 0% (zero rated). They will also enjoy 0% corporate income tax on foreign sourced income, 0% dividends withholding tax and 10% corporate tax on domestic sourced income for the first 10 years and 15% for the next 10 years.
2. Profit Repatriation
Businesses operating in the special economic zone will be able to fully repatriate all capital and profits without any foreign exchange impediments. This forms a key part of Two Rivers’ pitch to multinationals looking to set up base in Kenya.
Businesses operating in the Special Economic Zone will also enjoy exemptions on stamp duty, import declaration fee and 100% investment deduction.