The designation of Two Rivers International Financial Centre (owned by Centum) as a Special Economic Zone (SEZ) offers several benefits to investors. Here are some of the key advantages:
1. Tax Incentives:
SEZs often provide attractive tax incentives to investors. This may include exemptions or reductions in corporate income tax, import/export duties, value-added tax (VAT), and other taxes. These incentives can significantly lower the overall tax burden for businesses operating within the SEZ.
2. Simplified Regulations:
SEZs typically have streamlined and business-friendly regulatory frameworks. This simplification of rules and procedures can reduce bureaucratic hurdles, making it easier and faster for investors to set up and operate their businesses. It creates a more conducive environment for business growth and expansion.
SEZs often benefit from robust infrastructure development. This includes well-connected transportation networks, reliable power supply, advanced telecommunications, and other essential facilities. Such infrastructure provisions enhance the efficiency and competitiveness of businesses, attracting investors who can leverage these resources.
4. Access to Markets:
SEZs are strategically located to facilitate trade and access to both domestic and international markets. They may have preferential trade agreements, customs facilitation, and logistical support to promote exports and import substitution. This access to markets can open up new business opportunities and expand the customer base for investors.
5. Investment Support Services:
SEZs usually provide comprehensive investment support services. These may include business incubation centers, specialized training programs, access to finance, and networking opportunities. Such support services help investors overcome challenges, enhance their competitiveness, and foster innovation and knowledge-sharing.
6. Cluster Effect:
SEZs often attract a concentration of related industries and businesses within a specific geographic area. This cluster effect promotes synergies, collaboration, and knowledge spillovers among companies. It creates an ecosystem where suppliers, customers, and partners are in close proximity, fostering innovation, efficiency, and productivity.
7. Enhanced Global Standing:
The designation of a SEZ can enhance the global investment standing of the country and region. It signals the government’s commitment to creating a favorable investment climate and attracting foreign direct investment (FDI). This can instill confidence in investors and attract more capital inflows, technology transfers, and expertise.
These benefits make SEZs attractive investment destinations, providing a conducive environment for business growth, cost savings, market access, and support services.
This presents a great opportunity for the investor and financial professional to engage in finance, and it presents an avenue where Kenya can become East Africa’s regional financial hub.
Two Rivers International Financial Centre Now a Special Economic Zone
Today, 20th June 2023, Two Rivers International Financial Centre become a Special Economic Zone. The Gazette is found here:
There are favorable tax implications of a SEZ, which are well outlined in KPMG’s report below:
The designation of Two Rivers International Financial Centre (owned by Centum) as a Special Economic Zone (SEZ) offers several benefits to investors. Here are some of the key advantages:
1. Tax Incentives:
SEZs often provide attractive tax incentives to investors. This may include exemptions or reductions in corporate income tax, import/export duties, value-added tax (VAT), and other taxes. These incentives can significantly lower the overall tax burden for businesses operating within the SEZ.
2. Simplified Regulations:
SEZs typically have streamlined and business-friendly regulatory frameworks. This simplification of rules and procedures can reduce bureaucratic hurdles, making it easier and faster for investors to set up and operate their businesses. It creates a more conducive environment for business growth and expansion.
READ MORE: June 2023 Infrastructure Bond
3. Infrastructure Development:
SEZs often benefit from robust infrastructure development. This includes well-connected transportation networks, reliable power supply, advanced telecommunications, and other essential facilities. Such infrastructure provisions enhance the efficiency and competitiveness of businesses, attracting investors who can leverage these resources.
4. Access to Markets:
SEZs are strategically located to facilitate trade and access to both domestic and international markets. They may have preferential trade agreements, customs facilitation, and logistical support to promote exports and import substitution. This access to markets can open up new business opportunities and expand the customer base for investors.
5. Investment Support Services:
SEZs usually provide comprehensive investment support services. These may include business incubation centers, specialized training programs, access to finance, and networking opportunities. Such support services help investors overcome challenges, enhance their competitiveness, and foster innovation and knowledge-sharing.
6. Cluster Effect:
SEZs often attract a concentration of related industries and businesses within a specific geographic area. This cluster effect promotes synergies, collaboration, and knowledge spillovers among companies. It creates an ecosystem where suppliers, customers, and partners are in close proximity, fostering innovation, efficiency, and productivity.
7. Enhanced Global Standing:
The designation of a SEZ can enhance the global investment standing of the country and region. It signals the government’s commitment to creating a favorable investment climate and attracting foreign direct investment (FDI). This can instill confidence in investors and attract more capital inflows, technology transfers, and expertise.
These benefits make SEZs attractive investment destinations, providing a conducive environment for business growth, cost savings, market access, and support services.
To find more information regarding Two Rivers Financial Centre, click on the files below:
This presents a great opportunity for the investor and financial professional to engage in finance, and it presents an avenue where Kenya can become East Africa’s regional financial hub.