Kenya is placed at a strategic geographical location which creates immense opportunities for tourism investments. The country has one of the largest skilled human resources with majority of the workers with certification on tourism, this coupled with wide market access, and the quickly improving infrastructure, creates a positive environment for investing in Kenyan tourism.
The low risk investments environment is also a plus for those wishing to invest in Kenya. To make it more attractive to investors the Kenyan Government has created tax incentives for investors, with favorable investment policies. In a quest to increase investments both foreign and Local investors the Kenya Government provides both Fiscal and non-fiscal incentives as summarized here below:
- Guarantee against expropriating of private property which may occur for reasons of security or public interest for a fair and prompt compensation guaranteed.
- Repatriation of Capital and Profits guarantees: Capital repatriation, remittance of dividends and interest are guaranteed to foreign investors under the Foreign Investment Protection Act (FIPA) - CAP 518 after payments of applicable taxes.
- Other guarantees include- (membership) guarantees issues against non-commercial risk by Multilateral Investment Guarantee Agency (MIGA), International Centre for Settlement of Investment Disputes (ICSID), and of the Africa Trade Insurance Agency (ATIA).
- Custom Duty Exemption- to investors constructing or upgrading accommodation facilities - this will be done through recommendations by Tourism Regulatory Authority; exemptions will be on (washing machines, fridges and freezers, carpets, furniture etc.- The items must be engraved, printed or marked with the logo of the tourist hospitality establishment importing for its use.)
- Kenya constitution guarantees and respects property rights
- Kenya is a member to the International Centre for settlement of Investment Disputes (ICSID) which arbitrates cases between foreign investors and host governments.
- Corporation tax at 30% or 25% depending on the type of business
- Capital deduction: given on straight line- in respect of capital expenditure on hotel buildings at 70%
- The tax regime is relatively low with VAT @16%
- Kenya constitution guarantees and respects property right
- Membership to multilateral investments Guarantee Agency (MIGA) insures investments against non-commercial risk.