The government is banking on special economic zones to spark growth of industries in the counties in a move that could help the manufacturing sector recover from a difficult operating year.
According to the Fy 2021-22 Budget presented by Ukur Yatani, National Treasury Cabinet Secretary on 9th June 2021, the government has set aside Sh 20.5 billion for the promotion of local industries through various ministries.
This includes Sh 1.4 billion to the Kenya Industry, Sh 8.3 billion allocated to the Dongo Kundu SEZ and Entrepreneurship Project and Sh 448 million to the Kenya Industrial Research Laboratories.
Others that have received cash injections include the Naivasha Industrial Park, Naivasha Textile Park, Kisumu SEZ in Miwani and Athi River Textile Hub.
Ukur Yatani said previous tax incentives for the automotive industry such as removal of excise duty on locally assembled vehicles, duty free importation of Completely Knocked Down kits and reduced corporate tax from 30% to 15% have borne fruit.