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Kenya decides about tax incentive withdrawal from foreign investors

Kenya decides about tax incentive withdrawal from foreign investors

NAIROBI: Kenya officials decided about tax incentive withdrawal from foreign investors. The Kenya Revenue Authority (KRA) pleaded the case for the withdrawal of tax incentives offered to foreign investors in favour of improved service delivery and efficiency in the public sector.

The proposal by KRA, seeking to retire a raft of existing tax incentives and concessions offered to foreign investors is expected to boost revenue collection to accelerate national development.

Such tax incentives include the Export Processing Zones (10 year tax holiday, duty free import of materials/inputs, 100% Capital Investment deduction for manufacturing, Double Taxation Agreements and the proposed Free Trade Zone (FTZ) Bill.

Speaking at the ongoing of the 17th Biennial Ambassadors/High Commissioners conference in Kwale in Mombasa County in southern Kenya, KRA, Commissioner General, John Njiraini, while pleading the case for the tax incentives retirement, noted that the effect of such concessions and incentives on investor confidence, remains minimal, a statement issued in Nairobi disclosed.

The KRA Commissioner General, who was addressing the country’s diplomats on a topic themed: Investment Opportunities and Incentives in Kenya, outlined the need for an accelerated effort to retiring existing incentives by revitalizing and re-engineering the public sector through improved provision of service

Across the East Africa region, Njiraini disclosed that research studies had confirmed a very low ranking for tax incentives as a foreign investment attraction. He implored the Kenyan envoys to consider raising awareness on the country’s growing ‘Ease of Doing Business’ in their countries of posting.