NAIROBI, Kenya, May 11 – President William Ruto has signed into law the Income Tax Bill, the Special Economic Zones (Amendment) Bill, and the Technopolis Bill at State House, Nairobi.
The new laws are streamlining Kenya’s regulatory framework to strengthen the country’s position as an attractive investment destination by creating a more efficient, predictable, and competitive business environment.
The Income Tax Act seeks to rationalise the administration of capital gains tax to align Kenya’s tax regime with international best practices and recognised principles of taxation, while reinforcing the gains made in improving the ease of doing business.
The Special Economic Zones (SEZs) Act seeks to enhance Kenya’s competitiveness by expanding the scope of special economic zones to include oil and gas zones and harmonising the tax incentives applicable to entities undertaking activities within the zones.
The law also improves the SEZs system by matching it with the needs of big investments, offering a minimum licence period of ten years to fit the long timelines of these projects.
The legislation further expands the scope of special economic zones to support strategic sectors of the economy, including agro-processing, manufacturing, mining, advanced technology-driven production, and petroleum operations.
The Technopolis Act establishes a comprehensive legal framework for the creation, development, and governance of technopolises in Kenya.
The law seeks to position Kenya as a leading destination for technology-driven enterprises, innovation, and research by establishing integrated one-stop hubs for the efficient delivery of government services.
The framework is expected to attract global investment, talent, and innovation, while also accelerating Kenya’s transition into a technology-driven economy.
