The government of Kenya is amending the Special Economic Trade Act 2015 to align it with regional and continental activities, including the African Continental Free Trade Area.
The aim of these reforms is to make Kenya’s Special Economic Zones more efficient, competitive and globally integrated.
President William Ruto said that in addition to the amendments made to Kenya’s Special Economic Zones Act 2015, he has also introduced changes aimed at improving the functioning of special economic zones.
For example, the Budget Bill 2023 shows that businesses prefer products produced in certain regions and using local raw materials.
“The African Free Trade Area represents an opportunity to create a tariff-free Africa, boost intra-African trade and investment, drive industrialization, and generate meaningful employment,” noted President William Ruto during the opening of the 9th African Economic Zones Organisations Annual Meeting in Nairobi.
All these objectives require a strategy to create an ecosystem that combines the key policies, organizations and infrastructure factors needed to enhance business growth, export competitiveness and job potential. Therefore, the region’s special economy is important for growth, he added.
The law also introduces incentives such as lowering withholding taxes for overseas investors and other measures to attract foreign direct investment.
In the region, the East African Community has adopted a harmonized SEZ law to harmonize the treatment of products manufactured in these regions.
The recently approved EAC Special Trade Arrangements 2024 to ensure the free movement of goods between members.
The Annual Conference brings together specialized business areas across the continent, providing African countries with a platform to exchange experiences, identify challenges and promote better coordination.
“Kenya is sometimes seen as a more expensive investment destination for being ahead in setting the minimum wage standards. We encourage other nations to also set minimum wage benchmarks to ensure a level playing for all,” Principal Secretary for the state department of industry, Juma Mukhwana.
