President William Ruto has enacted three significant legislative measures at State House, Nairobi: the Income Tax Bill, the Special Economic Zones (Amendment) Bill, and the Technopolis Bill.
Following the signing, the President stated that these laws are intended to enhance Kenya’s economic standing, attract foreign investment, and improve the nation’s position as a regional center for business and technology.
Regarding the Income Tax Act, President Ruto explained that the legislation aims to simplify Capital Gains Tax administration and align Kenya’s tax system with global standards and principles. He emphasized that these reforms will support ongoing initiatives to facilitate business operations in Kenya.
The Special Economic Zones (Amendment) Act is designed to improve Kenya’s competitive edge by extending special economic zone status to include oil and gas activities, while standardizing tax benefits for enterprises operating within these zones.
Additionally, the law enhances the special economic zones framework by mandating a minimum license tenure of 10 years, a provision intended to accommodate extended project timelines associated with substantial capital investments.
The legislation also expands eligible sectors for special economic zone designation to encompass agro-processing, manufacturing, mining, advanced technology production, and petroleum operations.
Concurrently, the Technopolis Act provides a complete legal framework for establishing, developing, and governing technopolises throughout Kenya.
According to President Ruto, this law seeks to establish Kenya as a premier destination for technology-focused enterprises, innovation, and research by creating centralized facilities for streamlined governmental services.
The government anticipates that this new framework will draw international investment, expertise, and innovation, while accelerating Kenya’s progression toward a knowledge-based digital economy.