EPZ Program

An incentivized program for export-oriented trade.

EPZ Program

The Export Processing Zone (EPZ) program is managed by the Export Processing Zones Authority (EPZA) was created to promote export oriented industrial investment within designated zones.
The following are a range of attractive fiscal, physical, and procedural incentives the EPZ program offers.

  • 10-year Corporate Tax Holiday
  • 10-year Withholding Tax Holiday
  • 100% investment deduction on new investment
  • Perpetual exemption from payment of stamp duty on legal instruments
  • Perpetual exemption from VAT and customs import duty on inputs
  • Operation under essentially one license issued by EPZA
  • Rapid Project approval and licensing
  • No Exchange Controls – liberalized foreign exchange regime
  • Onsite customs documentation and inspection by Customs Staff
  • Unrestricted investment by foreigners
  • One-Stop-Shop service for facilitation and aftercare
  • Quality infrastructure for lease

* Terms and Conditions apply

The EPZA SME Development Programme

This program aims to nurture SME exporters with the majority local Kenyan shareholding desiring to set up under the EPZA program. It targets SMEs from the Horticulture/food processing, Textile/apparel, Leather, Commercial crafts, BPO, and ICT sectors.

In addition to the incentives offered under the EPZ program, the EPZ SMEs also have access to;

  • Purpose-built infrastructure with smaller warehouses.
  • Reduced rent rate and service charge; With a rent-free period of 4 months to allow for set up.
  • Capacity building: Business Development Services are provided.

A potential EPZ SME is categorized as an existing business whose total initial capital investment is less than Kshs. 40million has a workforce of fewer than 100 workers and is at least 75% Kenyan owned.

Incentives to EPZA SMEs

The following are the incentives currently accessed by EPZ SMEs:

  • EPZ Tax incentives: similar to other large EPZA enterprises.
  • Purpose-built warehouses.
  • Reduced rent rate and service charge.
  • Business Development Services are provided to the SMEs.

How to apply for an EPZ license

  • Present business plan of proposed EPZ activity
  • Submit a filled out EPZ application form and pay US $250 application fee.
  • Register the EPZ company after the project has been approved by EPZA.
  • Obtain National Environmental Management Authority (NEMA) Environmental Impact Assessment (EIA) compliance certificate.
  • Obtain a one year EPZ Licence.

EPZA Licenses

The EPZA Authority issues 3 main types of licenses or permits.

They are as follows:

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