Kenya Economic Outlook – Newvasha EPZ
Kenya Economy

Benefits of Setting Up in Newvasha EPZ

Unlocking Exponential Growth: The Comprehensive Advantages of Operating Within the Newvasha Development EPZ

Beyond Location: Why Kenya’s EPZ Model is the Ultimate Advantage for Export-Oriented Businesses

The decision to locate an export-oriented business is often driven by logistics, but the choice of operating within a private Export Processing Zone (EPZ) like the Newvasha Development EPZ provides a comprehensive package of fiscal, administrative, and infrastructural incentives that transform the cost of doing business and accelerate growth.

By lowering operational barriers and simplifying governmental procedures, the EPZ model is designed to facilitate investment and maximize global competitiveness.

I. Fiscal Incentives: Maximizing Profitability from Day One

The financial benefits of operating within the Newvasha Development EPZ are designed to give your business a sustained competitive edge through significant tax relief and capital support:

  • A Twenty-Year Tax Advantage: Qualified export enterprises are granted a substantial 10-year corporate income tax holiday, followed by a preferential 25% tax rate for the subsequent 10 years, ensuring long-term profitability.
  • 100% Investment Deduction: Investors can claim a full (100%) investment deduction on capital expenditures for all new buildings and machinery, deductible over a 20-year period, significantly easing the burden of upfront capital outlay.
  • Customs and VAT Exemptions: Businesses benefit from perpetual exemption from VAT and customs import duty on virtually all essential operational inputs. This covers raw materials, critical machinery, office equipment, building materials, and certain fuels, ensuring cost-effective procurement.
  • Withholding Tax Relief & Zero-Rated Purchases: A 10-year holiday from withholding tax is applied to dividends and other remittances sent to non-residents. Furthermore, local supplies of goods and services to EPZ enterprises are zero-rated for VAT, and companies are permanently exempt from paying stamp duty on legal documents.

II. Administrative Streamlining: Efficiency at the Core

Bureaucracy can slow growth, which is why the EPZ model provides crucial administrative support to ensure your business focuses solely on production and export:

  • The One-Stop-Shop Model: The Export Processing Zones Authority (EPZA) offers a unified, single point of contact for all licensing, approvals, and aftercare services. This dedicated service minimizes administrative complexity and cuts through red tape.
  • Rapid Project Approval: Project approval and licensing processes are significantly expedited, with most applications processed and approved within a remarkably short period of 20 working days.
  • Streamlined Customs Operations: With dedicated, resident customs offices operating within the EPZ, documentation and inspection occur on-site. This drastically accelerates clearance times and optimizes logistics chains.
  • Liberalized Foreign Exchange: Companies enjoy full freedom regarding foreign exchange, allowing for the easy repatriation of capital and profits. Businesses can also hold foreign currency accounts and are granted access to both domestic and offshore borrowing.
  • Unrestricted Foreign Investment: Newvasha EPZ welcomes 100% foreign ownership of enterprises. Investors also have the flexibility to bring in essential foreign workers for managerial, technical, and critical training positions.

III. Infrastructure & Operational Excellence

The Newvasha Development EPZ is a privately master-planned site, meaning operational reliability is guaranteed through superior, purpose-built infrastructure:

  • Ready-to-Operate Facilities: We provide serviced land and high-quality, pre-built factory buildings for rent or lease. These sites are equipped with non-negotiable essentials: dedicated, high-pressure water, resilient power supply, and all-weather operational roads.
  • International-Grade Facilities: The entire zone is built to world-class standards suitable for high-volume export production, including dedicated warehouses, modern office space, and essential on-site amenities.
  • Developer-Managed Services: Day-to-day operational concerns are managed by the Newvasha EPZ development team, including comprehensive on-site security, continuous street lighting, professional waste disposal, and general maintenance services.

A Note on Focus:

While the Newvasha Development EPZ is a versatile hub, certain commercial activities, such as general trading and repackaging, may not qualify for the full 10-year corporate tax holiday. We strongly encourage manufacturing and service-oriented enterprises to capitalize on the full range of powerful fiscal incentives available.