Kenya EPZ Company Formation

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Kenya Export Processing Zone Company

Kenya's Export Processing Zones (EPZ) are established under the Export Processing Zones Act (Cap 517) and administered by the Export Processing Zones Authority (EPZA). EPZ companies are required to export at least 80% of their total production, with a maximum of 20% permitted for sale in the Kenyan domestic market. The EPZ programme targets export-oriented manufacturing, agribusiness, textile, garment, and light industrial businesses, and has attracted significant foreign direct investment from Asia, Europe, and the Americas seeking an African manufacturing and export base with preferential market access to the EU under the EPA and to the USA under AGOA.

EPZ companies enjoy a 10-year corporate income tax holiday from the commencement of production, after which a preferential rate of 25% applies (compared to Kenya's standard 30% corporate tax rate). Additional incentives include full exemption from import and export duties on raw materials, plant, machinery, and equipment, exemption from VAT on inputs used in production, simplified work permit processing for foreign technical and managerial staff, and streamlined customs procedures. Major EPZ locations include Athi River in Nairobi and Mombasa Port, providing access to both inland and coastal logistics infrastructure.

10-Year Corporate Tax Holiday

EPZ companies receive a full corporate income tax holiday for the first 10 years from the commencement of production, followed by a preferential 25% rate, providing significant tax savings during the critical early operational years.

Import and Export Duty Exemptions

EPZ companies are fully exempt from import and export duties on all raw materials, plant, machinery, equipment, and inputs used in production, significantly reducing the capital and operating costs of export-oriented manufacturing.

80% Export Requirement

EPZ status requires that at least 80% of production is exported, qualifying companies for EU EPA preferential tariffs and USA AGOA duty-free access, making Kenya an attractive African export manufacturing base.

Industrial and Agribusiness Focus

Kenya's EPZ programme caters to manufacturing, agribusiness, textiles, garments, and light industrial production, with purpose-built facilities at Athi River (Nairobi) and Mombasa providing access to skilled labour and logistics infrastructure.

Get in Touch

Contact Neptune Fiduciaries Group via info@neptunecorporate.com or visit our Contact Us page.

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