Ruto woos investors with 10-year tax guarantee in Kenya’s special economic zones

Kenya has a predictable policy and laws that protect investors in special economic zones, President William Ruto has said.

The president pointed out that the Special Economic Zones Act of 2015, the Finance Act of 2023, as well as the Business Laws Amendment of 2024, give protection to investors in these economic zones.

Speaking during a panel discussion after the groundbreaking ceremony at the Vipingo Special Economic Zone in Kilifi County on Tuesday, President Ruto announced that the law on tax incentives is guaranteed for 10 years.

He explained that Kenya guarantees a stable, investor-friendly special economic zones regime, saying any changes will only benefit investors.

At the same time, President Ruto said Kenya is unlocking its full potential as Africa’s industrial powerhouse.

"We are investing in special economic zones as engines of growth to fast-track industrialisation, attract global investors, and create wealth for our people," he said.

With 38 special economic zones, 111 export processing zones, abundant green energy, a dynamic young workforce, and rich natural resources for value addition, Kenya stands as the gateway to Africa’s 1.4 billion-strong Africa Continental Free Trade Area market.

The Vipingo Special Economic Zone is a transformative 2,000-acre project set to attract $3 billion (Ksh.390 billion) worth of investments.

This project will also generate more than 35,000 direct jobs, thousands of indirect jobs, and spark thousands more economic opportunities across industries.

The president noted that special economic zones are central vehicles for delivering the government’s bottom-up economic transformation agenda.

"They provide critical infrastructure, including roads, power, water and ICT," he said.

On value chain enhancement, President Ruto said special economic zones power various industries, including agro-processing, textiles and apparel, and pharmaceuticals, among others. They create and retain jobs locally while expanding exports.

The president said Kenya has introduced bold reforms to remain attractive to investors and a leader in value addition.

He pointed out that predictable policies, competitive incentives, and modern infrastructure make Kenya Africa’s premier export hub.

Speaking at the Arise Integrated Industrial Platforms Kenya Investment Forum 2025 at Vipingo Ridge, the president said the government is standing tall in positioning Kenya not only as Africa’s premier investment destination, but also as a global hub of choice.

"As Kenya and Africa, we must cast aside the smallness of vision. We must raise our ambition to rival the very best in the world within our lifetime," he said.

The forum brought together investors, policymakers, financial institutions, and industry leaders with a shared mission of unlocking opportunities through special economic zones.

They all agreed that these special vehicles of manufacturing and production are the central engines for driving Kenya and Africa's industrialisation and investment agenda.

The president pointed out three more investment packages Kenya is focusing on, citing textiles and apparel, e-mobility, and business process outsourcing (BPOs).

He announced that their packaging has been completed and will be available to investors next week.

"Together, they form a blueprint for building end-to-end value chain ecosystems that create jobs, raise incomes, strengthen food security, and position our counties as net exporters," he said.

President Ruto commended Arise IIP and their partners for their vision, commitment, and confidence in Kenya.

Their partnership with Centum at the Vipingo Special Economic Zone, the president said, as well as their investment in Dongo Kundu and Naivasha, alongside the $700 million (KSh91 billion) investment by Vision Invest, demonstrates that Kenya is a premier destination for serious and transformative investment.

At the event, President Ruto witnessed the signing of an MoU between the Ministry of Investments, Trade and Industry and the Linglong Group for the establishment of a state-of-the-art auto spare parts industrial park in Kenya, a landmark step in the country’s journey to industrial transformation.

Afrexim Bank president and chairman Benedict Oramah said special economic zones will bolster Kenya's industrialisation aspirations.

Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui and Kilifi Governor Gideon Mung’aro also spoke at the forum.