NAIROBI, Kenya- President William Ruto has signed into law three key pieces of legislation aimed at strengthening Kenya’s position as a regional investment and innovation hub.
In a statement issued after the signing ceremony at State House, Nairobi, President Ruto said the new laws are designed to create a more efficient, predictable and competitive business environment to attract both local and foreign investment.
The President assented to the Income Tax Bill, the Special Economic Zones (Amendment) Bill, and the Technopolis Bill, describing them as critical pillars in Kenya’s economic transformation agenda.
“We are streamlining our laws to strengthen Kenya’s position as an attractive investment destination by creating a more efficient, predictable, and competitive business environment,” Ruto said.
The newly enacted Income Tax Act seeks to reform the administration of Capital Gains Tax and align Kenya’s tax regime with international best practices while supporting ongoing efforts to improve the ease of doing business.
According to the President, the law will simplify tax administration and create a more predictable framework for investors and businesses operating in Kenya.
The Special Economic Zones (Amendment) Act expands the scope of special economic zones to include oil and gas operations while harmonising tax incentives for firms operating within the zones.
The legislation also introduces a minimum licence tenure of 10 years for investors undertaking large-scale projects, a move aimed at accommodating long investment cycles often associated with capital-intensive industries.
The law further broadens the sectors eligible for special economic zone incentives to include agro-processing, manufacturing, mining, advanced technology production and petroleum operations.
Ruto said the reforms are intended to enhance Kenya’s competitiveness in attracting strategic investments and industrial development.
Meanwhile, the Technopolis Act establishes a legal framework for the creation, development and management of technopolises in Kenya.
The President said the framework will position Kenya as a leading destination for technology-driven enterprises, research and innovation by creating integrated one-stop hubs for government services and digital business operations.
“The framework is expected to attract global investment, talent, and innovation while accelerating Kenya’s transition into a knowledge-based digital economy,” Ruto stated.
The signing of the three laws comes as Kenya intensifies efforts to position itself as a preferred investment destination in Africa amid increasing global competition for capital, innovation and manufacturing opportunities.
