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Investment Promotion

Frequently Asked Questions

SDIP is a State Department under the Ministry of Investments, Trade and Industry. It was formed through Executive Order No. 1 of 2023. The State Department falls under the Ministry of Investments, Trade and Industry(MITI).

It is headed by a Principal secretary that is answerable to the Cabinet secretary

MITI. The functions of the department include:

  1. Development and Implementation of Investment policy and strategy;
  2. Promote, both locally and internationally, the opportunities for investment in Kenya;
  3. Promotion and Oversight of the Development of Special Economic Zones, Export Processing Zones and Industrial Parks;
  4. Coordinating the transformation of the ecosystem supporting private sector development;
  5. Development of a business reform agenda across the entirety of Government;
  6. Championing automation and re-engineering Government business and services processes;
  7. Driving legislative and regulatory reform on the ease of doing business and business transformation;
  8. Coordination of engagements with the private sector/business community in respect to business climate and business transformation;
  9. Monitoring the implementation of business climate reforms as recommended by key international partners, notably:
    • The World Bank;
    • The World Economic Forum;
    • The Global Investment Forum; and
    • The international bodies and indices and,
  10. Creating public awareness of reforms in the business climate and ease of doing business.



SDIP is in the mother State department under the Ministry of Investments, Trade and Industry. SDIP majorly handles policy matters relating to investment promotion, facilitation, and aftercare.

  •  Investment Authority (KenyaenInvest) Keninvest is a statutory body established in 2004 and currently operating through an Act of Parliament (Investment Promotion Act No. 6 of 2004) with the main objective of promoting investments in Kenya. It is responsible for facilitating the implementation of new investment projects, providing After Care services for new and existing investments, as well as organizing investment promotion activities both locally and internationally.
  • Export Processing Zones Authority (EPZA) The Export Processing Zones Authority (EPZA) is a State Corporation under the Ministry of Investments, Trade & Industry (MITI), established in 1990 by the EPZ Act CAP 517, Laws of Kenya. The Mandate of the EPZA includes:

 Development of all aspects of the Export Processing Zones (EPZ) with particular emphasis on the provision of advice on the removal of impediments to, and creation of incentives for, export-oriented production in areas designated as export processing zones;

 Regulation and administration of approved activities within the export processing zones;

 Protection of government revenues and foreign currency earnings.

  • Special Economic Zones Authority (SEZA) (SEZA)   is the institution responsible for attracting,  facilitating, and retaining domestic and foreign direct investments in Special Economic Zones (SEZs). The Authority serves as the regulator of both public and private SEZs in Kenya. It exists to create an enabling environment for investors through the development of integrated infrastructure facilities, as well as the creation of incentives that eliminate the barriers to doing business in Eastern Africa’s most vibrant economic hub. Established in 2015 by an Act of Parliament (  Special Economic Zones Act No. 16 of 2015  ), the institution’s core objectives are:

A) Facilitate investment in SEZs through one-stop-shop and advisory services. This includes making recommendations to the government of       Kenya through the Ministry of Investments, Trade and Industry on all aspects of designation, approval, establishment, operation and regulation of special economic zones;

B)Collaborate with public and private sector stakeholders to inform and implement the policies   and programmes of the Government with      regard to special economic zones;

C) Support the establishment and operation of SEZs by identifying, mapping, and, where necessary, making available the areas of land and infrastructure to support special economic zones.

D) Continuously assess and evaluate market opportunities so as to streamline policy frameworks and processes to promote investments in the development and operation of SEZs as well as the economic activities within these zones.

Kenya Development Corporation Ltd (KDC) is a Development Finance Institution that was established in 2020 to merge the operations of the Industrial and Commercial Development Corporation (ICDC), Tourism Finance Corporation (TFC), and IDB Capital Limited. KDC is mandated to play a catalytic role in Kenya’s socio-economic development by providing long-term financing and other financial, investment, and business advisory services. Therefore, KDC plays an important role in addressing critical gaps for long-term funding that cannot be met by commercial banks in target sectors in Kenya and elsewhere.


i. Kenya Investment Policy

ii. The Investment Promotion Act. Chapter 485B. Revised Edition 2009 (2004). Published by the National Council for Law Reporting.

Kenya is one of the most developed economies of East and Central Africa, it’s a land of enormous opportunities and strong prospects supported by an emerging middle-income class meaning an appetite for high-quality valued goods and services. Kenya offers a low-risk business environment characterized by political stability, low levels of fraud, and insecurity among other factors. In fact, Kenya has one of the highest Internet penetration rates on the continent with nearly 72% of its people having access to the internet and making it a viable investment destination. Kenya is a signatory to a number of multi-lateral and bilateral trade agreements as part of the trade political, Kenya is a member of WTO. In addition, Kenya is a member of several trade arrangements and beneficiary to trade enhancing schemes that include AGOA, ACP-EU Trade agreement, and COMESA. Sectors to invest in Kenya includes Agriculture, Energy, Manufacturing, Financial services information, communication, infrastructure, and Tourism among others.

There are three main categories of investment incentives, which can be implemented on local, regional, national, and supranational levels: financial incentives, such as various grants and loans; fiscal incentives, such as tax holidays and reduced tax rates; and other incentives, such as subsidized infrastructure. The following are a range of attractive fiscal, physical, and procedural incentives that the EPZ program offers.

  • 10-year Corporate Tax Holiday
  • 10-year Withholding Tax Holiday
  • 100% investment deduction on new investment
  • Perpetual exemption from payment of stamp duty on legal instruments
  • Perpetual exemption from VAT and customs import duty on inputs
  • Operation under essentially one license issued by EPZA
  • Rapid Project approval and licensing
  • No Exchange Controls – liberalized foreign exchange regime
  • On-site customs documentation and inspection by Customs Staff
  • Unrestricted investment by foreigners
  • One-Stop-Shop service for facilitation and aftercare
  • Quality infrastructure for lease