It seems that Kenya is yet to appreciate how special economic zones can be applied to spur industrialisation. In the run up to this year’s budget, Treasury secretary Henry Rotich proposed to eliminate incentives for special economic zones and in particular- the ten- year tax corporate holiday and customs and duty exemptions.
Predictably, the proposal by the minister was greeted with alarm especially by the manufacturing sector. Come the real Budget speech, and following representations by voices in the manufacturing sector- the minister dropped the idea of reducing the incentive regime incentives for special economic zones.
