Two US firms with operations in Kenya have reported enjoying significant tax benefits arising from the move last year by President William Ruto’s administration to cut taxes for local branches of foreign companies.
Ormat Technologies Inc, a US company that has power generation operations in Kenya, disclosed a tax benefit of $9.4 million (Sh1.49 billion), suggesting that foreign companies will make billions of shillings in savings from the controversial Finance Act, 2023 that reduced the corporate tax rate for the branches from 37.5 percent to 30 percent.
