61st ANNIVERSARY OF KENYA’S INDEPENDENCE: Investment and Trade treaties for investments & market access

TEXT: Africa Growth and Opportunity Act (AGOA): Duty free and quota free for 16,000 products into the US Market

Kenya-U.S. Strategic Trade and Investment Framework Agreement (STIP) Economic Partnership Agreement (EPA) with the European Union:

27 member EU market with a population of 449 million and a combined GDP of 15.8 trillion Euros

Kenya-United Kingdom Economic Partnership Agreement (EPA) Kenya-UAE Comprehensive Economic Partnership Agreements 22 International Investment Agreements (IIAs) signed: Netherlands, Germany, Italy, United Kingdom, China, Switzerland, Libya, France, Finland, Islamic Republic of Iran, Burundi, Slovakia, Mauritius, Kuwait, Turkey, Qatar, Korea, United Arab Emirates, Japan, Singapore, South Africa and OPEC Fund for International Development. 13 IIAs still in force; 7 not signed into force and 4 terminated

Stable Economy

Kenya has political & macroeconomic stability Robust financial system Global leader in financial inclusion.

Logistics & Innovation hub of the region

Access to regional transport corridors. 4 international airports: JKIA being the busiest in East Africa 2 Sea Ports and 2 Inland Container Depots (ICDs). Home to green data centers. 3rd most established start-up ecosystems in Africa. Nairobi: leading tech innovation hub in sub-Saharan Africa.

Skilled & Dynamic Workforce

Kenya has a youthful population with 70% under the age of 35 years and an impressive 82% literacy rate.

Your Investment is safe with us

Constitutional protection of Property 100% repatriation of profits or interests Dispute Resolution Mechanisms International Centre for Settlement of Investment Disputes Multilateral Investment Guarantee Agency Nairobi Centre for International Arbitration

Renowned Vibrant Democracy

Kenya plays a significant role in regional and international geopolitics and hosts Africa's UN headquarters.

Incentivized Economic Zones & Industrial Parks

More than 100 Export Processing Zones (EPZs) More than 35 Special Economic Zones (SEZs) County Aggregation and Industrial Parks (CAIPs) across all counties.

Kenya is leading Africa’s green transition

93% of energy is from renewable sources

2nd Market in Sub-Saharan Africa to list a private sector green bond Kenya has prioritized low - carbon resilient investments to reduce its already low greenhouse gas emissions a further 32% by 2030

$40Mn Green Investment Fund by Government

National Investment Pillars

1. Competitive Investment Climate and Business Environment for Domestic and Foreign Direct Investments

2. Promotion and facilitation of existing investment opportunities (Kenya Investment Authority)

3. Incentivized Zones (Special Economic Zones & Export Processing Zones)

4. De-risking Domestic and Foreign Direct Investments (Kenya Development Corporation)

Competitive Investment Climate and Business Environment

Investment Climate

Economic Environment

Inflation Interest rates Economic growth & exchange rates

Environmental (Ecological) Factors

Sustainability concerns Environmental regulations & impact

Socio-Cultural Environment

Social trends Demographics Consumer behavior and Cultural factors

Competitive Environment

No. & strength of competitors Market trends Industry trends

Political and Legal Environment

Government policies Regulations & Legal issues

Global Environment

International Trade Policies Global market trends & Cross-border economic relationships Cultural factors

Business Environment

1. Business Entry

2. Business Location

3. Utility Services

4. Labour

5. Financial Services

6. International Trade

7. Taxation

8. Dispute Resolution

9. Market Competition

10. Business Insolvency

Invest in the Export Processing Zones (EPZ)

Imported Goods

• Perpetual exemption from Import duty & VAT on raw materials & machinery

Stamp Duty

• Perpetual Exemption

Corporate Tax Preferential Rates

• Ten-year tax holiday

• Next 10 years: 25%

• Subsequent years: 30%

Local Government Fee Exempt

• Advertisement fees

• Business Service permit fees

Investment Deduction Allowance

• 100% allowance on capital expenditure on building and machinery

Withholding Tax

• 10-year withholding tax holiday

Preferential electricity tariff:

5¢ US/ kWh – Naivasha SEZ 10¢ US kWh – Other SEZs

Incentives in the Special Economic Zones (SEZ)

Withholding Tax

• Dividends - Exempt

• Royalties – Exempt for first 10 years

• Gains on transfer of property - Exempt

• Other payments (commissions & rent) – 10%

Green Channel Port Clearance

• Clearance of select goods done without routine examination

Imported Goods Fully Exempt

• Value Added Tax

• Excise Duty

• Import Duty

• Import Declaration

Investment Deduction Allowance

• 100% allowance on capital expenditure on building and machinery

Local Supplies Zero Rated

• Value Added Tax

Local Government Fee Exempt

• Advertisement fees

• Business Service permit fees

Corporate Tax Preferential Rates

• First 10 years: 10%

• Next 10 years: 15%

• Subsequent years: 30%

Stamp Duty

• Perpetual Exemption

A DIFFERENT SAFARI EXPERIENCE

RETREAT

by Vittoria in the Masai Mara Deep in the Masai Mara ecosystem sits Olarro Conservancy and Lodge. Olarro is like a bubble where time seems to stand still so you can do what you want, when you want. Enjoy private safaris, quad biking and exquisite bush dining to picnics, sundowners, cultural excursions to a Maasai village, unwinding at the Olarro spa and other special treats. Karibu, enjoy the wonder.

KAYAKING AT THE MUGIE DAM

by Ekorian Camp in Laikipia Ekorian Muige Camp is a quaint family friendly camp that offers a variety of activities such as game drives, guided walks, bush meals, camel walks, and picturesque sundowners to keep patrons occupied. One of these features stands out from the rest – kayaking on the Muige Dam, an experience like no other. Its toe-dipping bliss as you glide through the waters, watching kingfishers dive for their feed. Kayaking takes game viewing and bird watching to another level. The absolute thrill of watching animals come for a drink on hot sunny days, being at the same level as the elephants playing in the water is nothing short of magical

MOUNT KENYA:

MORNING FLY FISHING FUN

by Tropic Air in central Kenya Mount Kenya, located deep in the heart of Kenya, is a dormant volcano. With its rugged peaks, glacial valleys and forested slopes, Kenya’s highest mountain is also it most iconic and celebrated natural feature. Lake Michaelson, Lake Ellis, Lake Alice and Fox Tarn are just some of the spots that you can enjoy while here. Almost inaccessible and well off the beaten track, they offer an exciting morning of fly fishing like nowhere else

SUGUTA VALLEY; A DAY TRIP BY HELICOPTER

Within the Great Rift Valley lies the dramatic and diverse landscapes of the Gregory Rift which runs beyond the limits of the Laikipia region. With the freedom of touch down along the way you will fly over crocodile pools, vast salt pans, lava flows, through eroded valleys and eventually over the flamingo-fringed shores of Lake Logipi. Then with a brief landing on the incredible Suguta sand dunes you will continue to the northern most point of this scenic flight, Lake Turkana – sometimes called the jade sea with its turquoise fresh waters. Our journey brings us back via the Ndoto and Matthews mountains, dominant ranges that rise from the arid plains with misty forests and ancient cycads on its summit. The final leg will have you flying over the wildlife savannah plains of Samburu.

BIG CAT SAFARIS

by Gamewatchers, Nairobi, central and southern Kenya Experience a special journey in some of the best areas in the world to see the majestic big cats. Take in four very diverse habitats and immerse yourself in an authentic wildlife and cultural safari among pioneering and globally recognised conservancies that are engaging communities in a meaningful way. Guests stay at gold eco-rated facilities and in two of only 49 that make up the green list of the International Union for Conservation of Nature (IUCN) of protected and conserved areas in the world – the global standard of best practice for area-based conservation. Your stay directly helps protect habitat for the big cats while supporting the neighbouring communities. In the conservancies, every tent you stay in is protecting 700 acres of wildlife habitat while limiting the impact to the environment from vehicles to about on vehicle to 1,400 acres. By the end of the eight day experience you will be planning to return – only this time as a stranger no more, but as a friend.

Magical Kenya

FAST FACTS

OFFICIAL NAME: Republic of Kenya

FORM OF GOVERNMENT: Republic

CAPITAL: Nairobi

POPULATION: 48,397,527

OFFICIAL LANGUAGES: Swahili, English

MONEY: Kenyan shilling

AREA: 224,081 square miles (580,367 square kilometers)

MAJOR MOUNTAIN RANGES: Aberdare Range, Mau Escarpment

MAJOR RIVERS: Athi/Galana, Tana

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