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Businesses operating in special economic hubs will from Monday start deducting the investment capital on buildings and machinery from their taxes.
Under the Finance Act 2017, capital expenditure by Special Economic Zones (SEZ) on buildings and machinery qualify for a 100 per cent investment deduction in the year in which the building or machinery is first used. For investments outside Nairobi and Mombasa counties, SEZs are entitled to claim investment deductions at 150 per cent in the first year of use.
The new corporate income tax regime announced by Treasury secretary Henry Rotich in his last budget seeks to encourage investment and create employment opportunities in the manufacturing sector.
President Uhuru Kenyatta has singled out manufacturing as one of the four key sectors that his administration will pay special attention to.
Others are food security, affordable housing, and affordable healthcare.
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