Tax incentives, infrastructure and market access both locally and internationally will guarantee returns on investment for US firms putting their money in Kenya, President William Ruto now says.
This, as he fronts the Bottom Up Economic Transformation Agenda (BETA) to US investors, amid the push for a Strategic Trade and Investment Partnership (STIP) between the two countries, which he said should be ready for implementation in the second half of this year.
Speaking during this year’s American Chamber of Commerce in Kenya (AmCham) 2024 Business Summit, Ruto called on US companies to tap opportunities in agro-processing (Agriculture), Small and Medium Enterprise (MSME) space, healthcare and affordable housing pillars of his economic agenda.
The government, he said, has also set up Special Economic Zones with preferential tax terms and incentives for investors, mainly in manufacturing and value addition.
Kenya is putting in place measures to support investment and growth of businesses, the President said, including a predictable tax environment.
It is banking on the National Tax Policy, among other measures, to ensure a conducive business and investment climate.
Adopted by the National Treasury in December last year, the National Tax Policy has been designed to address the unpredictability of tax rates, with recommendations to have the tax law reviewed once every five years.
To address international taxation and treaties, the policy recommends putting in place mechanisms to facilitate the smooth exchange of information while also putting in place rules to deter profit shifting and base erosion.
The policy also provides policy recommendations based on specific issues affecting specific tax heads, which include income tax, VAT, Excise, and customs duties.
“I give my word that the business climate and environment in Kenya will become better and better because we will not stop making improvements,” President Ruto said.
The Amcham Summit has seen more than seven key private sector deals sealed this year, mainly in manufacturing, technology and trade.
Ruto said the government has invested heavily in infrastructure to support investments in the country, as Kenya remains strategically located in serving the East and Central Africa region.
“This also allows investors to use Kenya to access the African market under the African Continental Free Trade Area,” the President said.
During a fireside chat with US Commerce Secretary Gina Raimondo, President Ruto further said that Kenya offers investors a skilled labour market that guarantees investors growth.
Raimondo affirmed President Joe Biden’s commitment to continue working with Kenya in exploring opportunities to strengthen bilateral commercial ties across a variety of sectors, including the digital economy, infrastructure, agriculture, clean energy, critical minerals and artificial intelligence.
She commended Kenya as a leader on the continent on digital transformation and Kenya’s strides to achieve its green Silicon Savanah aspirations as a growing hub for technology and clean energy.
“VCs (Venture Capitals) in Kenya are happy, Kenya’s investment climate is attractive and people are people willing to take the risk,” Raimondo noted.
The Amcham annual Summit, which this year reached its fourth series, has over the years been used to strengthen US-Kenya and East Africa Community trade and investment relations.
During this year’s AmCham Summit, Kenya was keen on deals in agriculture, ICT, energy, textile, green energy and manufacturing, with a value exceeding the $700 million (Sh94.5 billion) worth of deals sealed in last year’s summit.