News

We are pleased to report on the latest developments in tax policies and incentives introduced by the government to promote economic growth and attract investments. The recent reforms aim to provide equal treatment to both foreign and domestic companies while stimulating specific sectors, such as manufacturing and healthcare. Below is a summary of the key changes:

In a promising development, the Permanent Secretary (PS) had a productive meeting with the representatives from the Thailand Chamber of Commerce, led by Chairman Mr. Sanan Angubolkulp. The primary objective of the meeting was to present Kenya as an open and welcoming destination for business opportunities.

In pursuit of advancing agro processing, value addition, and pharmaceutical sectors, the Permanent Secretary (PS) embarked on a visit to the Thailand Food & Drug Administration, a regulatory body ensuring quality assurance for imported drugs and processed food. The meeting resulted in a significant agreement between the two countries to collaborate on benchmarking standards, with a particular focus on facilitating trade in drugs and processed agricultural products.

During the recent visit to Thailand, a delegation led by the Permanent Secretary (PS) had a productive meeting with the Board of Investment (BOI). It was observed that currently, the BOI is primarily focused on facilitating Outward Foreign Direct Investment (FDI) rather than Inward FDI.

However, in line with Kenya's objective of attracting foreign investment, the delegation explored opportunities to tap into Thailand's Outward FDI. Specifically, Kenya has set an inward FDI target of $10 billion, and efforts are underway to leverage Thailand's outward FDI.

In Kenya, the government is taking significant steps to enhance investment promotion and facilitation through an amendment to the existing Kenya Investment Promotion Act. The proposed amendment aims to establish the Investment Promotion and Facilitation Act, reflecting the strategic priority of investment facilitation. As part of this process, a Technical Working Group was formed, which included the Permanent Secretary (PS) of the State Department for Investment Promotion.

In a significant development aimed at bolstering Kenya's investment sector, the Permanent Secretary (PS) expressed satisfaction as they officiated the launch of ICIFA College. The newly established college aims to address the need for skilled investment professionals in the country, thereby equipping them with the necessary expertise to redefine and package Kenyan investment opportunities into bankable ventures.

In a notable move aimed at strengthening economic ties between India and Kenya, the Permanent Secretary (PS) Abubakar Hassan, recently hosted a delegation of representatives from the Indian Kenyan business community. Led by Ambassador Mrs. Namgya Khampa, the Indian High Commissioner to Kenya, the discussions focused on increasing Indian investments in the Kenyan economy. With a shared objective in mind, the participants reached an agreement to develop a collaborative framework to facilitate the realization of this goal.

The European Commission and Kenya have successfully concluded negotiations to establish a long-term trade agreement, facilitating a significant partnership between Kenya and the 27 countries of the European Union (EU).

The Permanent Secretary (PS) recently embarked on a tour of two prominent factories in Kenya, namely the KEDA Ceramic Factory located in Kajiado and the Sunda Baby Diapers Factory in Athi River. These factories collectively employ over 2,000 individuals and have showcased remarkable technology transfer benefits and extensive utilization of backward linkages within the local community.

The Permanent Secretary (PS) of the State Department spearheaded a crucial stakeholders' engagement session aimed at presenting and gathering additional insights on various business and investment-related laws. This collaborative effort seeks to review and enhance the effectiveness of key legislative acts, including the SEZ Act 2015, EPZ Act 1990, Investment Promotion Act 2004, Business Laws Amendment Bill 2023, and the proposed Kenya National Chambers Bill.