Export Processing Zone Authority

The Export Processing Zones Authority (EPZA) is a State Corporation under the Ministry of Investment, Trade and Industry mandated to promote and facilitate export-oriented investments and to develop an enabling environment for such investments.

Incentives in the Export Processing Zones

1. 10 year Corporate Tax Holiday, 25% for next 10 years and 30% thereafter
2. 10 year Withholding Tax Holiday on remittances to non residents
3. 100% investment deduction allowance on building and machinery
4. Perpetual exemption from payment of stamp duty on legal instruments
5. Perpetual exemption from VAT and customs import duty on raw materials and machinery

Investment Opportunities in the EPZ Program
1. Cold chain (Horticulture, Floriculture, Fisheries, Meat Processing),
2. Agro processing,
3. Cotton. Textile & Apparel Value Chain,
4. Business Process Outsourcing (BPO) and IT Enabled Services (ITES)
5. Supply chain (Primary and Intermediate Goods),
6. Transport & warehousing & distribution logistics,
7. Buying house (Sourcing and Supply),
8. Building Warehouses Fit for Purpose Plug and Play Sheds

The EPZ Licenses

1. Enterprise licenses (Manufacturing and Service)

2. Developer/Operator License

3. Commercial Licence

Requirements for an EPZ License

1. Export Orientation - over 80% of the total sales to be exported outside EAC
partner states; 100% export sales for commercial license
2. Local Sales up to 20% subject to Ministerial approval and payment of all taxes,
EAC is considered local market.
3. Only New Investments --(not conversion of going concerns) in Kenya
4. EPZ companies must operate in an EPZ designated Zone