TRALAC - Trade Law Centre

Kenya's Export law to be reviewed

Monday, 06 April 2009

Source: Daily Nation (Kenya)

The government will review the Export Processing Zone Act to allow for the export of services and enable the business processing outsourcing firms to enjoy tax incentives.

Information permanent secretary, Dr Bitange Ndemo on Wednesday said the review will allow for the EPZ incentives like tax waivers to apply for the firms wherever they are located.

“We have requested the ministry of trade to revise the EPZ Act through the miscellaneous amendment Bill to remove the problem that we have in the sector.” he said.

The PS was speaking in his office at Teleposta Towers during the announcement of the BPO week to be held between 7th and 9th April, which is to be hosted by Kenya Business Processing Outsourcing and Contact Centre.

Dr Ndemo said the review will enable the export of services and allow EPZ to be located anywhere, like is happening in other countries.

He said the ICT sector was bedevilled by many problems, which the government was trying to fix to spur its growth.

The Export Processing Zone was introduced in 1990 with the aim of encouraging investment to spur industrialisation and create employment through market opportunities offered by African Growth and Opportunities Act (AGOA).

The initiative enables sub-saharan countries to access the huge American market without duties and quotas for their products.

The EPZ Act did not envisage the export of services like those done by the business processing outsourcing.

Kencall Limited is the only firm currently located at the designated EPZ, hence able to enjoy a 10 year tax holiday, value added tax, duty and stamp duty waivers.

This has placed BPO firms that operate outside the designated Export Processing Zones at a disadvantage because of the uneven business environment.

According to the society’s chair lady, Ms Gilda Odera the conference, which will be attended by international experts in the field is also intended to link up local and international firms.

The expected exhibitors are BPO firms, technology solution providers, internet service providers and utility firms.



“ Latest AGOA Trade Data currently available on AGOA.info


Click here to view a sector profile of Kenya's bilateral trade with the United States, disaggregated by total exports and imports, AGOA exports and GSP exports.


Other regularly updated trade statistics on AGOA.info include: (click each link to view)

  • AGOA-Beneficiary Countries’ AGOA and GSP Trade Aggregates

  • AGOA Trade by Industry Sector

  • Apparel Trade under AGOA’s Wearing Apparel Provisions

  • Latest Apparel Quotas under AGOA

  • Bilateral Trade Data for all AGOA-eligible countries individually.