Tax-incentive investment threshold halved to attract inflows

The threshold for investments that qualify for tax incentives offered for capital expenditures in the manufacturing or hospitality sector in Kenya, has been halved to Sh1billion in a strategy to woo investors.

The changes, through the Tax Law Amendment Act 2024, which was signed by President William Ruto, will take effect on December 27—allowing investments of Sh1 billion to be deducted from the income that will be subjected to corporate income tax as the country moves to revamp its industrial competitiveness.