Export Processing Zones Act
This Act may be cited as the Export Processing Zones Act.
- Jurisdiction
- Kenya
- Instrument
- Act or statute
- Citation
- Cap. 517
- Version
- 1 Jul 2023
- Language
- en
- Official source
- View official record ↗
Source attribution: Source: Kenya Law
Statute overview
About this statute
This Act may be cited as the Export Processing Zones Act. This section provides definitions of terms used in the Act (for example: "Authority", "export processing zone", "export", "import", "commercial activity", and others). Section 10 gives the Authority powers to set procedures, security, licences, entry rules and require information for export processing zones, and requires the Authority to decide on designations and approvals within thirty days of receiving a completed application. The Export Processing Zones Authority must have its own general fund; the fund includes fees under the Act and other sums received, the Fund is used to defray the Authority's expenditures, and the annual budget must be approved by the Treasury with excess general fund amounts paid into the Consolidated Fund. The Authority must keep proper books of accounts; the Authority or an authorized person may in writing require a licensee to furnish returns or information within a period (not less than thirty days); licensees are not compelled to disclose patented commercial secrets.
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Provisions of Export Processing Zones Act
Showing 35 of 35
Part I
PRELIMINARY
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PRELIMINARY - 1. Short title
This Act may be cited as the Export Processing Zones Act.
Section 1. Short title Section This Act may be cited as the Export Processing Zones Act. - 2 Verify source ↗
PRELIMINARY - 2. Interpretation
This section provides definitions of terms used in the Act (for example: "Authority", "export processing zone", "export", "import", "commercial activity", and others).
Section 2. Interpretation Section In this Act, unless the context otherwise requires— "adequate security" means security which has been accepted as adequate by the Authority ("the Export Processing Zones Authority established by;") for the purposes of section 10 ; "Authority" means the Export Processing Zones Authority established by section 3 ; "commercial activity" means trading in, breaking bulk, grading, repacking or relabelling of goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") and industrial raw materials ("items used as ingredients in the manufacture of goods;") ; "company" means a company within the meaning of the Companies Act ( Cap. 486 ) or a company incorporated outside Kenya but registered in Kenya under the Companies Act ( Cap. 486 ); "customs control" means the measures applied to ensure compliance with the laws and regulations which the customs officers are responsible for enforcing; "customs officer" means any person employed in the service of the customs; "customs territory" means the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") ; "domestic Kenyan business" means any individual, partnership, corporation or other entity conducting a trade or business within Kenya, which is not an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") ; "duty" means the fiscal, customs and excise duty for the time being leviable under any written law; "eligible activities" includes activities to enable agricultural activities preceding processing and value addition directly related to value addition conducted in Kenya within a gazetted export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") in aquaculture, horticulture, tea, coffee, floriculture, dairy and ranching, and silviculture; "export" means to take or cause to be taken out of the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") or into an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") ; "export processing zone" means a designated part of Kenya where any goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") introduced are generally regarded, in so far as import duties and taxes ("customs duties and all other duties, taxes, fees or other charges which are collected on or in connection with the importation and exportation of goods, but does not include fees and charges which are limited in amount to the costs of services rendered under this Act;") are concerned, as being outside the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") but are duly restricted by controlled access and wherein the benefits provided under this Act apply; "export processing zone developer" means a corporate body established to develop and administer an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") under this Act; "export processing zone enterprise" means a corporate body, including a developer or an export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") which has been granted a licence ("a licence issued under this Act;") under this Act; "export processing zone export" means any product sold by an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") in an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") for exportation direct or through the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") ; "export processing zone import" means any input or service to be supplied to an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") within an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") , whether from outside or inside the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") ; "export processing zone operator" means a corporate body engaged in the management of an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") designated under section 15 ; "goods" includes all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale; "import" means to bring or cause to be brought into the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") from a foreign country or from an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") ; "import duties and taxes" means customs duties and all other duties, taxes, fees or other charges which are collected on or in connection with the importation and exportation of goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") , but does not include fees and charges which are limited in amount to the costs of services rendered under this Act; "industrial raw materials" means items used as ingredients in the manufacture of goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") ; "infrastructure" means a physical structure such as a road, bridge, or storm sewer which facilitates economic or other activity or protects property; "Kenya Revenue Authority" means the Authority ("the Export Processing Zones Authority established by;") established by section 3 of the Kenya Revenue Authority Act ( Cap. 469 ); "licence" means a licence issued under this Act; "manufacture" includes— (a) the conversion of organic or inorganic material by manual, mechanical, chemical or biochemical means into a new product by changing the size, shape, composition, nature or quality of such material; and (b) assembly of parts into a piece of machinery or other products, but excludes— (i) the installation of machinery or equipment for the purpose of construction; or (ii) any process that is composed primarily of agricultural, pastoral, horticultural or sylvicultural activities; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for industry; and "service activity" means an export ("to take or cause to be taken out of the customs territory or into an export processing zone;") -related service provided by an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") , including consultancy, information, brokerage and repair services, but excluding financial services and commercial activity ("trading in, breaking bulk, grading, repacking or relabelling of goods and industrial raw materials;") . [Act No. 7 of 1993 , s. 2, Act No. 6 of 1994 , s. 76(a), Act No. 9 of 2000 , s. 105, Act No. 18 of 2018 , Sch.]
Part II
THE EXPORT PROCESSING ZONES AUTHORITY
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THE EXPORT PROCESSING ZONES AUTHORITY - 10. Power of theAuthorityto make rules
Section 10 gives the Authority powers to set procedures, security, licences, entry rules and require information for export processing zones, and requires the Authority to decide on designations and approvals within thirty days of receiving a completed application.
Section 10. Power of theAuthorityto make rules Section 10(1)(a) determine application procedures and criteria for the approval of export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones or export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") developers or export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") operators and export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises; Section 10(1)(b) determine procedures for providing the benefits accruing to export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") developers, export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") operators and export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises; Section 10(1)(c) ensure adequate security ("security which has been accepted as adequate by the Authority for the purposes of;") within the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones; Section 10(1)(d) determine the form of the licences to be issued under this Act and the procedures for amendment and revocation of the licences; Section 10(1)(e) determine entry of personnel into an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") ; and Section 10(1)(f) require information from export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") developers, operators, and enterprises. Section 10(2) The Authority ("the Export Processing Zones Authority established by;") shall render its decision on the designation of an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") and all other approvals required under this Act within thirty days from the date on which the completed application form for the relevant approval or the licence ("a licence issued under this Act;") has been received by the Authority ("the Export Processing Zones Authority established by;") . [Act No. 14 of 1991 , Sch.] - 11 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 11. General fund and annual budget of theAuthority
The Export Processing Zones Authority must have its own general fund; the fund includes fees under the Act and other sums received, the Fund is used to defray the Authority's expenditures, and the annual budget must be approved by the Treasury with excess general fund amounts paid into the Consolidated Fund.
Section 11. General fund and annual budget of theAuthority Section 11(1) The Authority ("the Export Processing Zones Authority established by;") shall have its own general fund. Section 11(2)(a) all such sums of money as may be paid as fees under this Act; and Section 11(2)(b) all such sums of money as may be received by the Authority ("the Export Processing Zones Authority established by;") for its operations from any other source. Section 11(3) There shall be paid out of the Fund all such sums of money required to defray the expenditure incurred by the Authority ("the Export Processing Zones Authority established by;") in the exercise, discharge and performance of its objectives, functions and duties under this Act. Section 11(4) The annual budget of the Authority ("the Export Processing Zones Authority established by;") shall be subject to approval by the Treasury and any funds generated in the general fund in excess of the amounts deemed appropriate by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") shall be paid into the Consolidated Fund. - 12 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 12. Accounts,etc., of theAuthority
The Authority must keep proper books of accounts; the Authority or an authorized person may in writing require a licensee to furnish returns or information within a period (not less than thirty days); licensees are not compelled to disclose patented commercial secrets.
Section 12. Accounts,etc., of theAuthority Section 12(1) The Authority ("the Export Processing Zones Authority established by;") shall cause proper books of accounts to be kept of its income and expenditure, assets and liabilities and all other transactions of the Authority ("the Export Processing Zones Authority established by;") . Section 12(2) The Authority ("the Export Processing Zones Authority established by;") or any person officially authorized in that behalf by the Authority ("the Export Processing Zones Authority established by;") may, by notice in writing, require any licensee to furnish to the Authority ("the Export Processing Zones Authority established by;") or to an authorized person, within such period as is specified in the notice, not being less than thirty days, all such returns or information as specified in such notice: Provided that nothing in this section shall compel a licensee to disclose his patented commercial secrets. - 13 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 13. Disclosure of information
The Authority and its officers or servants must not disclose or use information acquired under section 12(2) except to achieve the Authority's objectives or if required by a court; officers who contravene are guilty of an offence and liable to a fine up to 200,000 shillings or up to three years' imprisonment or both.
Section 13. Disclosure of information Section 13(1) The Authority ("the Export Processing Zones Authority established by;") or any officer or servant of the Authority ("the Export Processing Zones Authority established by;") shall not disclose to any person or use any return or information acquired under section 12 (2) except for the purpose of achieving the objectives of the Authority unless required to do so by a court of law. Section 13(2) Any officer or servant of the Authority ("the Export Processing Zones Authority established by;") who contravenes this section shall be guilty of an offence and liable to a fine not exceeding two hundred thousand shillings or imprisonment for a term not exceeding three years or to both. - 14 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 14. Committees
The Authority may appoint committees and may delegate such of its powers to those committees.
Section 14. Committees Section The Authority ("the Export Processing Zones Authority established by;") may appoint committees, whether of its own members or otherwise, to carry out such general or specific functions as may be specified by the Authority ("the Export Processing Zones Authority established by;") , and may delegate to any such committee such of its powers as the Authority ("the Export Processing Zones Authority established by;") may deem appropriate. - 3 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 3. Establishment and membership of the Export Processing ZonesAuthority
Establishes the Export Processing Zones Authority and lists its powers, membership, term, grounds for removal, remuneration determination, and exemption from stamp duty.
Section 3. Establishment and membership of the Export Processing ZonesAuthority Section 3(1) There is hereby established an authority to be known as the Export Processing Zones Authority ("the Export Processing Zones Authority established by;") . Section 3(2)(a) suing and being sued; Section 3(2)(b) taking, purchasing or otherwise acquiring, holding, charging and disposing of movable and immovable property; Section 3(2)(c) having and managing its own general fund including borrowing and lending money; Section 3(2)(d) entering into contracts; and Section 3(2)(e) doing or performing all such other things or acts necessary for the proper performance of its functions under this Act which may lawfully be done by a corporate body. Section 3(3)(a) a Chairperson to be appointed by the President; Section 3(3)(b) a representative of the Kenya Association of Manufacturers; Section 3(3)(c) a representative of the Kenya National Chamber of Commerce and Industry; Section 3(3)(d) four other members appointed by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") from the private sector, who in his opinion, have experience and expertise in manufacturing or export ("to take or cause to be taken out of the customs territory or into an export processing zone;") trade or commercial and financial matters; Section 3(3)(e) the Principal Secretary to the Treasury; Section 3(3)(f) the Principal Secretary to the Ministry for the time being responsible for industry; Section 3(3)(g) the Governor of the Central Bank of Kenya; Section 3(3)(h) the Commissioner of Customs; Section 3(3)(i) the Commissioner of Lands; Section 3(3)(j) the managing director of the Investment Promotion Centre; and Section 3(3)(k) the chief executive of the Authority ("the Export Processing Zones Authority established by;") . Section 3(4) The Chairperson and every member appointed under paragraphs (b), (c) and (d) of subsection (3) shall hold office for a period of three years and shall be eligible for re-appointment. Section 3(5)(a) he delivers to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") a written resignation of his appointment; Section 3(5)(b) on the advice of the Authority ("the Export Processing Zones Authority established by;") , the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") removes him from office on the grounds that he is incapacitated by mental or physical illness or is otherwise unable or unfit to discharge the functions of a member or is unable to continue as a member; Section 3(5)(c) he has been absent from three consecutive meetings of the Authority ("the Export Processing Zones Authority established by;") without leave or good cause; Section 3(5)(d) he is adjudged bankrupt or enters into a composition scheme or arrangements with his creditors; Section 3(5)(e) he is sentenced by a court to imprisonment for a term of six months or more; or Section 3(5)(f) he is convicted of an offence involving dishonesty, fraud or moral turpitude. Section 3(6) The members of the Authority ("the Export Processing Zones Authority established by;") shall be paid such remuneration and allowance out of the general fund of the Authority ("the Export Processing Zones Authority established by;") as may be determined by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") . Section 3(7) The Authority ("the Export Processing Zones Authority established by;") shall be exempt from payment of any stamp duty ("the fiscal, customs and excise duty for the time being leviable under any written law;") chargeable under the Stamp Duty Act ( Cap. 480 ). [Act No. 7 of 1993 , s. 3.] - 4 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 4. Meetings and procedures of theAuthority
Sets meeting procedures: the Chairperson must convene monthly meetings and on written request by two members; chief executive convenes if Chairperson absent; quorum is half the members; Chairperson may resign to the President; members with conflicts must disclose and may be excluded; President appoints an acting member during Chairperson's extended absence.
Section 4. Meetings and procedures of theAuthority Section 4(1) The Chairperson of the Authority ("the Export Processing Zones Authority established by;") shall convene meetings at least once each month and whenever he receives a written request signed by at least two members; and in the absence of the Chairperson, meetings shall be convened by the chief executive of the Authority ("the Export Processing Zones Authority established by;") and the members present shall elect one of the members to preside as Chairperson. Section 4(2) The quorum for any meeting of the Authority ("the Export Processing Zones Authority established by;") shall be half of its members and the Authority ("the Export Processing Zones Authority established by;") may, subject to the requirement for the quorum, regulate the procedure in regard to meetings of the Authority ("the Export Processing Zones Authority established by;") and the transaction of business at such meetings. Section 4(3) If the Chairperson of the Authority ("the Export Processing Zones Authority established by;") , by reason of extended illness or absence is temporarily unable to perform the duties of his office, the President shall appoint another member of the Authority ("the Export Processing Zones Authority established by;") to act in his place during the period of absence. Section 4(4) The Chairperson may at any time resign by a letter addressed to the President and the resignation shall take effect upon being accepted by the President. Section 4(5) Any member who has a direct or indirect interest in any decision that is to be taken on any matter by the Authority ("the Export Processing Zones Authority established by;") , shall disclose the nature of such interest at the meeting of the Authority ("the Export Processing Zones Authority established by;") where such decision is being taken and the disclosure shall be recorded in the minutes of the meeting, and if either the member or a majority of the members of the Authority ("the Export Processing Zones Authority established by;") believe that such member’s interest in the matter is such as to influence his judgment, he shall not participate in the deliberation or the decision of the Authority ("the Export Processing Zones Authority established by;") on such matter. - 5 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 5. Seal and execution of documents
The Authority must keep its common seal in its custody and must not affix it to any instrument or document except when authorized; documents and decisions of the Authority may be signed by the Chairperson or, if the Chairperson is absent from the meeting, by the person presiding.
Section 5. Seal and execution of documents Section 5(1) The common seal of the Authority ("the Export Processing Zones Authority established by;") shall be kept in the custody of the Authority ("the Export Processing Zones Authority established by;") and shall not be affixed to any instrument or document except as authorized by the Authority ("the Export Processing Zones Authority established by;") . Section 5(2) All documents, other than those required by law to be under seal, made by, and all decisions of, the Authority ("the Export Processing Zones Authority established by;") may be signified under the hand of the Chairperson, or, in the case of a decision taken at a meeting at which the Chairperson is not present, under the hand of the person presiding at such meeting. - 6 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 6. Appointment of chief executive of theAuthority
The Cabinet Secretary may appoint or remove the Authority's chief executive on the Authority's recommendation; the Cabinet Secretary determines the chief executive's terms and remuneration; the chief executive is charged with directing the Authority's affairs subject to the Authority's direction and control.
Section 6. Appointment of chief executive of theAuthority Section 6(1) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may, on recommendation of the Authority ("the Export Processing Zones Authority established by;") , appoint a chief executive of the Authority ("the Export Processing Zones Authority established by;") whose conditions and terms of employment including remuneration shall be determined by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") . Section 6(2) The chief executive shall, subject to the general direction and control of the Authority ("the Export Processing Zones Authority established by;") , be charged with the direction of the affairs and transactions of the Authority ("the Export Processing Zones Authority established by;") , the exercise, discharge and performance of its objectives, functions and duties, and the administration and control of the servants of the Authority ("the Export Processing Zones Authority established by;") . Section 6(3) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may, on recommendation of the Authority ("the Export Processing Zones Authority established by;") , remove from office the chief executive appointed under subsection (1). - 7 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 7. Appointment and remuneration of staff
The Authority may appoint officers and servants; those officers shall be remunerated as determined by the Authority; officers must carry out powers, functions and duties assigned by the chief executive.
Section 7. Appointment and remuneration of staff Section 7(1) The Authority ("the Export Processing Zones Authority established by;") may appoint such other officers and servants as it considers necessary for the efficient discharge of its responsibilities and functions. Section 7(2) The officers and servants appointed under subsection (1) shall be remunerated in such manner and at such rates, and shall be subject to such conditions of service, as may be determined by the Authority ("the Export Processing Zones Authority established by;") . Section 7(3) Subject to this Act, every officer or servant appointed under subsection (1) shall exercise such powers and functions and perform the duties assigned to him from time to time by the chief executive. - 8 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 8. Protection from legal action
The Authority and its members, officers and servants are not personally liable for acts done in good faith on the Authority's direction or in performing duties or exercising powers under the Act; if a court finds an act was done in good faith, expenses from suits against those persons must be paid from the Authority's general fund unless recovered in the suit.
Section 8. Protection from legal action Section 8(1) Neither the Authority ("the Export Processing Zones Authority established by;") , any of its members, officers nor servants shall be personally liable for an act which is done or purported to be done in good faith by such person, on the direction of the Authority ("the Export Processing Zones Authority established by;") or in the performance or intended performance of any duty ("the fiscal, customs and excise duty for the time being leviable under any written law;") or in the exercise of any power under this Act or the regulations made thereunder. Section 8(2) Any expenses incurred by any person referred to in subsection (1) in any suit or prosecution brought against him before any court in respect of any act which is done or purported to be done by him under this Act or on the direction of the Authority ("the Export Processing Zones Authority established by;") shall, if the Court holds that such act was done in good faith, be paid out of the general fund of the Authority ("the Export Processing Zones Authority established by;") , unless such expenses are recovered by him in such suit or prosecution. - 9 Verify source ↗
THE EXPORT PROCESSING ZONES AUTHORITY - 9. Objectives of theAuthority
Section 9 sets out the objectives and functions of the Export Processing Zones Authority, including advising the Cabinet Secretary, implementing government policies for export processing zones, designating and approving zones and licences, enforcing customs and exchange-control compliance, maintaining performance data, and powers such as suspending or cancelling licences.
Section 9. Objectives of theAuthority Section 9(1)(a) the development of all aspects of the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones with particular emphasis on provision of advice on the removal of impediments to, and creation of incentives for, export ("to take or cause to be taken out of the customs territory or into an export processing zone;") -oriented production in areas designated as export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones; and Section 9(1)(b) the regulation and administration of approved activities within the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones, through implementation of an administrative system in which the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises are self regulatory to the maximum extent; and Section 9(1)(c) the protection of Government revenues and foreign currency earnings. Section 9(2)(a) to advise the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") on all aspects of development of the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones; Section 9(2)(b) to implement the policies and programmes of the Government with regard to development of the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones; Section 9(2)(c) to identify and map the areas to be designated as export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones; Section 9(2)(d) to plan the development and maintenance, and to finance the basic infrastructure ("a physical structure such as a road, bridge, or storm sewer which facilitates economic or other activity or protects property;") up to the perimeter of the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones; Section 9(2)(e) to examine and process applications for designation of export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones and issue relevant approvals; Section 9(2)(f) to examine and process applications for licences by the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") developers, export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") operators, and export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises and issue the relevant licences; Section 9(2)(g) to promote and market export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones among investors; Section 9(2)(h) to issue certificates of origin to export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises for the purpose of a generalized system of preferences and other trade preferences given under bilateral or multilateral trade agreements; Section 9(2)(i) to act as a "one-stop" centre through which the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises can channel all their applications for permits and facilities not handled directly by the Authority ("the Export Processing Zones Authority established by;") ; Section 9(2)(j) to process building plans and issue relevant approvals in consultation with the Ministry responsible for physical planning and other relevant authorities; Section 9(2)(k) to perform all such administrative functions in relation to the designated export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones as would normally be performed by local authorities; Section 9(2)(l) to maintain current data on the performance of the programme in each individual export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") and export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") ; Section 9(2)(m) to enforce within the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") compliance with customs procedures and other requirements for preventing the unauthorized use of designated export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones and export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing enterprises; Section 9(2)(n) to enforce compliance with exchange control procedures and other requirements for preventing the unauthorized use of designated export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones and export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises; Section 9(2)(o) to suspend or cancel the licence ("a licence issued under this Act;") of an export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") or an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") or an export processing zone developer ("a corporate body established to develop and administer an export processing zone under this Act;") which is in the violation of the customs law and the Value Added Tax Act ( Cap. 476 ); and Section 9(2)(p) to do all such other acts as may be incidental or conducive to the attainment of the objectives of the Authority ("the Export Processing Zones Authority established by;") or the exercise of its powers under this Act.
Part III
EXPORT PROCESSING ZONES
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EXPORT PROCESSING ZONES - 15. Declaration ofexport processing zone
The Cabinet Secretary may, on the Authority's recommendation and after consultation with the finance Cabinet Secretary, declare by Gazette any area, land or building in Kenya to be an export processing zone to promote manufacture or provision of services for export.
Section 15. Declaration ofexport processing zone Section 15(1) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may, on the recommendation of the Authority ("the Export Processing Zones Authority established by;") and in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") for the time being responsible for finance, with the object of attracting, promoting or increasing the manufacture of goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") , or provision of services, for export ("to take or cause to be taken out of the customs territory or into an export processing zone;") , by notice in the Gazette , declare any area, land or building or part thereof in Kenya to be an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") . Section 15(2) Every declaration of an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") under subsection (1) shall define the limits of the zone and shall remain in force until revoked by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") by order in the Gazette . [Act No. 7 of 1993 , s. 4, Act No. 6 of 1994 , s. 76(b), Act No. 7 of 2007 , Sch., Act No. 18 of 2018 , Sch.] - 16 Verify source ↗
EXPORT PROCESSING ZONES - 16. Facilities, etc., within anexport processing zone
The Export Processing Zones Authority may require developers to provide and maintain facilities (including enclosures) and may order removal of goods or stop activities it considers dangerous; no one may reside in a zone without prior permission; the Authority must give a person an opportunity to be heard before issuing such an order; contravening the section is an offence punishable by a fine up to 200,000 shillings or imprisonment up to three years, or both.
Section 16. Facilities, etc., within anexport processing zone Section 16(1) The Authority ("the Export Processing Zones Authority established by;") may require the export processing zone developer ("a corporate body established to develop and administer an export processing zone under this Act;") to provide and maintain in an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") such facilities, including adequate enclosure to separate an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") from the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") , as it may consider necessary for the proper and efficient functioning of the zone. Section 16(2) Subject to this Act, no person shall reside within an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") without the prior permission of the Authority ("the Export Processing Zones Authority established by;") . Section 16(3) The Authority ("the Export Processing Zones Authority established by;") may at its discretion order the exclusion or removal from an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") of any goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") or discontinuance of any activity or operations which in its opinion, are dangerous or prejudicial to public interest, health or safety: Provided that the Authority ("the Export Processing Zones Authority established by;") shall not issue an order under this section without first giving such a person an opportunity to be heard. Section 16(4) Any person who contravenes this section shall be guilty of an offence and liable to a fine not exceeding two hundred thousand shillings or to imprisonment for a term not exceeding three years or to both. - 17 Verify source ↗
EXPORT PROCESSING ZONES - 17. Activities permitted within anexport processing zone
An export processing zone enterprise must physically separate manufacturing activities from commercial activities when those commercial activities involve goods manufactured outside Kenya.
Section 17. Activities permitted within anexport processing zone Section 17(1)(i) where manufacturing and commercial activities involving goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") manufactured outside Kenya are carried on by an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") , the two activities shall be physically separated; and Section 17(1)(ii) where commercial activities involve goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") manufactured outside Kenya, such goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") shall be clearly labelled as products of the country where such goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") were manufactured. Section 17(2) For the purposes of subsection (1), notwithstanding the repeal of the First Schedule the activities specified in that Schedule or additions made thereto by the Minster by notice in the Gazette shall continue to be carried out in the manner specified for each designated export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") . [Act No. 7 of 1993 , s. 5, Act No. 8 of 1997 , s. 66.] - 18 Verify source ↗
EXPORT PROCESSING ZONES - 18. Power ofCabinet Secretaryto make rules
The Cabinet Secretary may, in consultation with the Export Processing Zones Authority, make rules for the proper establishment and administration of export processing zones.
Section 18. Power ofCabinet Secretaryto make rules Section The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may, in consultation with the Authority ("the Export Processing Zones Authority established by;") , make rules for the proper establishment and administration of the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones.
Part IV
LICENSING PROVISIONS
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LICENSING PROVISIONS - 19. Licences
No person may carry on business as an export processing zone developer, operator or enterprise, or hold themselves out as providing activities or facilities within an export processing zone, unless licensed.
Section 19. Licences Section 19(1) No person shall carry on business as an export processing zone developer ("a corporate body established to develop and administer an export processing zone under this Act;") , export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") or export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") or hold himself out as providing or maintaining activities or facilities within an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") unless he has been licensed as an export processing zone developer ("a corporate body established to develop and administer an export processing zone under this Act;") or an export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") or an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") , as the case may be. Section 19(2) The Authority ("the Export Processing Zones Authority established by;") may, on receiving application in the prescribed form, issue a licence ("a licence issued under this Act;") to any person to carry on business as an export processing zone developer ("a corporate body established to develop and administer an export processing zone under this Act;") , or an export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") or an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") and every licence ("a licence issued under this Act;") issued under this subsection shall be in the prescribed form. Section 19(2A) The Authority ("the Export Processing Zones Authority established by;") shall, before issuing a licence ("a licence issued under this Act;") allowing commercial activities, consult with the Commissioner-General of the Kenya Revenue Authority ("the Authority established by section 3 of the Kenya Revenue Authority Act ();") . Section 19(3)(a) the activities in respect of which the enterprise is licensed and shall, in relation to commercial activities, indicate whether the enterprise is permitted to deal in goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") not directly related to its manufacturing activities; and Section 19(3)(b) any conditions attached to the licence ("a licence issued under this Act;") . - 20 Verify source ↗
LICENSING PROVISIONS - 20. Register of licences
The Authority must, subject to the National Single Window System, keep and maintain an electronic register of licences issued under this Act showing the prescribed particulars.
Section 20. Register of licences Section 20(1) The Authority ("the Export Processing Zones Authority established by;") shall, subject to the requirements of the National Single Window System, keep and maintain an electronic register of licences issued under this Act indicating the particulars prescribed. Section 20(2)(a) the holder of the licence ("a licence issued under this Act;") ceases to carry on the business to which the licence ("a licence issued under this Act;") relates; or Section 20(2)(b) a change occurs in any particulars which are required to be entered in the register of licence ("a licence issued under this Act;") of licence ("a licence issued under this Act;") holders with respect to the holder of a licence ("a licence issued under this Act;") ,
Part IX
MISCELLANEOUS PROVISIONS
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MISCELLANEOUS PROVISIONS - 31. Appeal to theCabinet Secretary
The Cabinet Secretary may, in the public interest, set aside the Export Processing Zones Authority’s decision.
Section 31. Appeal to theCabinet Secretary Section 31(1)(a) refusing to grant a licence ("a licence issued under this Act;") ; Section 31(1)(b) imposing limitations or restrictions on a licence ("a licence issued under this Act;") ; Section 31(1)(c) cancelling or suspending a licence ("a licence issued under this Act;") ; Section 31(2) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may, if he considers it in the public interest to do so, set aside the Authority ("the Export Processing Zones Authority established by;") ’s decision. - 32 Verify source ↗
MISCELLANEOUS PROVISIONS - 32. Power ofCabinet Secretaryto give directions
The Cabinet Secretary may give directions to the Export Processing Zones Authority and may direct the Authority to furnish returns and information; the Authority must comply with such directions.
Section 32. Power ofCabinet Secretaryto give directions Section 32(1) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may give to the Authority ("the Export Processing Zones Authority established by;") such directions as he may consider necessary for the proper functioning of an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") or for the purpose of protecting revenue and foreign exchange earnings. Section 32(2) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may from time to time direct the Authority ("the Export Processing Zones Authority established by;") to furnish in such form as he may require returns, accounts and any other information with respect to the work of the Authority ("the Export Processing Zones Authority established by;") and the Authority ("the Export Processing Zones Authority established by;") shall comply with such direction. - 33 Verify source ↗
MISCELLANEOUS PROVISIONS - 33. Report to theCabinet Secretary
The Export Processing Zones Authority must, within three months after the end of each financial year, submit to the Cabinet Secretary a yearly report of its operations and audited accounts in the form and detail the Cabinet Secretary may determine.
Section 33. Report to theCabinet Secretary Section The Authority ("the Export Processing Zones Authority established by;") shall within three months after the close of each financial year, submit to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") a report of its operations and activities throughout the year, together with audited accounts in such form and details as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may from time to time determine. - 34 Verify source ↗
MISCELLANEOUS PROVISIONS - 34. Regulations
The Cabinet Secretary responsible for industry may make regulations about matters the Act requires or authorizes to be prescribed.
Section 34. Regulations Section The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may make regulations in respect of any matter required by the Act to be prescribed or in respect of which regulations are authorized to be made. - 35 Verify source ↗
MISCELLANEOUS PROVISIONS - 35. General powers of theCabinet Secretary
The Cabinet Secretary may, by Gazette order and for health, environmental or public security reasons, exclude goods or services from this Act or prohibit goods from being taken into an export processing zone.
Section 35. General powers of theCabinet Secretary Section 35(1) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may, for health, environmental or public security reasons and by order published in the Gazette , exclude goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") or services from the provisions of this Act. Section 35(2) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") may, for health, environmental or public security reasons and by order published in the Gazette , prohibit any goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") from being taken into an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") .
Part V
EXPORT PROCESSING ZONE DEVELOPERS AND OPERATORS
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EXPORT PROCESSING ZONE DEVELOPERS AND OPERATORS - 21. Qualifications ofexport processing zonedevelopers and operators
Sets qualifications for export processing zone developers and operators: they must be a company, have necessary capital and expertise, and (except certain operators) own or lease land/buildings for at least ten years; qualified developers shall receive an operator's licence from the Authority if they meet regulatory criteria.
Section 21. Qualifications ofexport processing zonedevelopers and operators Section 21(1)(a) be a company ("a company within the meaning of the Companies Act () or a company incorporated outside Kenya but registered in Kenya under the Companies Act ();") incorporated in Kenya for the sole purpose of developing and operating an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") ; Section 21(1)(b) have the necessary capital and expertise required for developing the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing zones; and Section 21(1)(c) except for an export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") appointed under section 22 , own or lease land or buildings or part thereof for a minimum period of ten years for land and buildings or part thereof. Section 21(2) Each export processing zone developer ("a corporate body established to develop and administer an export processing zone under this Act;") shall receive an export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") ’s licence ("a licence issued under this Act;") from the Authority ("the Export Processing Zones Authority established by;") if it qualifies under the criteria prescribed in the regulations. [Act No. 14 of 1991 , Sch., Act No. 18 of 2018 , Sch.] - 22 Verify source ↗
EXPORT PROCESSING ZONE DEVELOPERS AND OPERATORS - 22. Powers ofexport processing zonedevelopers and operators
Section 22 gives export processing zone developers and operators powers to appoint operators, improve and provide infrastructure, enclose and secure zones, adopt rules, lease or sell land (charging rent in convertible foreign currency), and duties to maintain accounts, report to authorities and register leases; failure to keep accounts is an offence punishable by a fine not exceeding three hundred thousand shillings.
Section 22. Powers ofexport processing zonedevelopers and operators Section 22(1)(a) act or appoint an export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") to undertake management and administration of the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") on its behalf subject to subsection 19 (1); Section 22(1)(b) lease, sub-lease or sell land or buildings to licensed export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises, and charge rent or fees for other services that may be provided, in convertible foreign currency. Section 22(2)(a) make improvements to the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") site and its facilities according to the plans approved by the Authority ("the Export Processing Zones Authority established by;") ; Section 22(2)(b) provide or facilitate provision of infrastructure ("a physical structure such as a road, bridge, or storm sewer which facilitates economic or other activity or protects property;") and other services according to the design and engineering studies submitted to the Authority ("the Export Processing Zones Authority established by;") together with the application; Section 22(2)(c) provide adequate enclosures to segregate the zone area from the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") for the protection of revenue together with suitable provisions for the movement of persons, conveyances, vessels and goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") entering or leaving the zone; Section 22(2)(d) provide adequate security ("security which has been accepted as adequate by the Authority for the purposes of;") on the site office accommodation and facilities for customs as determined by the Authority ("the Export Processing Zones Authority established by;") ; Section 22(2)(e) adopt rules and regulations for businesses within the zone, which shall promote its safe and efficient operations; Section 22(2)(f) maintain adequate and proper accounts and other records in relation to its business and report on zone activities, performance and development to the Authority ("the Export Processing Zones Authority established by;") on an annual basis or as required by the Authority ("the Export Processing Zones Authority established by;") , the Commissioner of Customs, the Central Bank, the Central Bureau of Statistics or other relevant authorities; and Section 22(2)(g) register any lease agreements and service. Section 22(3) The accounts and records required under paragraph (f) of subsection (2) shall be maintained in English. Section 22(4) An export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") shall have the powers stated in paragraph (b) of subsection (1). Section 22(5) An export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") shall comply with all the provisions of this section including paragraphs (d), (e), (f) and (g) of subsection (2). Section 22(6) Any export processing zone developer ("a corporate body established to develop and administer an export processing zone under this Act;") or export processing zone operator ("a corporate body engaged in the management of an export processing zone designated under;") who fails to maintain adequate and proper accounts and other records as required by this section shall be guilty of an offence and liable to a fine not exceeding three hundred thousand shillings. [Act No. 14 of 1991 , Sch.]
Part VI
EXPORT PROCESSING ZONE ENTERPRISES
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EXPORT PROCESSING ZONE ENTERPRISES - 23. Establishment ofexport processing zoneenterprises
An export processing zone enterprise shall not be established and shall not receive the Part VIII benefits unless it holds a valid licence issued by the Authority.
Section 23. Establishment ofexport processing zoneenterprises Section 23(1) No export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") shall be established, and the benefits described in Part VIII shall not accrue to any enterprise, unless the export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") holds a valid licence ("a licence issued under this Act;") issued by the Authority ("the Export Processing Zones Authority established by;") . Section 23(2)(a) is incorporated in Kenya, whether or not it being one hundred percent foreign owned, for the sole purpose of producing goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") or services for export ("to take or cause to be taken out of the customs territory or into an export processing zone;") within an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") ; Section 23(2)(b) proposes to engage in any activity or activities eligible to be undertaken by an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") in the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") ; Section 23(2)(c) shall not have a deleterious impact on the environment, or engage in unlawful activities, impinging on national security or may prove to be a health hazard; and Section 23(2)(d) conducts business in accordance with the laws for the time being in force save for any exemptions that may from time to time be granted.
Part VII
OPERATIONS WITHIN THE EXPORT PROCESSING ZONES
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OPERATIONS WITHIN THE EXPORT PROCESSING ZONES - 24. Goods deemed to be exported and imported into Kenya
Goods or services taken from the customs territory into an export processing zone are treated as exported from Kenya and must be paid for in convertible currency.
Section 24. Goods deemed to be exported and imported into Kenya Section goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") which are taken out from any part of the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") and brought into an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") or services provided from part of the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") to an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") shall be deemed to have been exported from Kenya and shall be paid for in convertible currency; and - 25 Verify source ↗
OPERATIONS WITHIN THE EXPORT PROCESSING ZONES - 25. Goods within anexport processing zone
Movements of goods into or out of an export processing zone or into the customs territory require approvals and may be subject to customs supervision, procedures and duties.
Section 25. Goods within anexport processing zone Section 25(1)(a) for export ("to take or cause to be taken out of the customs territory or into an export processing zone;") ; or Section 25(1)(b) for export ("to take or cause to be taken out of the customs territory or into an export processing zone;") into the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") , with the approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") and subject to the import ("to bring or cause to be brought into the customs territory from a foreign country or from an export processing zone;") and customs procedures and payment of import ("to bring or cause to be brought into the customs territory from a foreign country or from an export processing zone;") duties; or Section 25(1)(c) for repair and maintenance, or processing or conversion, with prior approval of the Authority ("the Export Processing Zones Authority established by;") under supervision of customs and subject to such conditions as may be imposed. Section 25(2)(a) persons outside Kenya; or Section 25(2)(b) other export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises in furtherance of the export ("to take or cause to be taken out of the customs territory or into an export processing zone;") activities of such enterprises subject to approval of the Authority ("the Export Processing Zones Authority established by;") ; or Section 25(2)(c) persons in the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") subject to approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") . - 26 Verify source ↗
OPERATIONS WITHIN THE EXPORT PROCESSING ZONES - 26. Prohibited activities within theexport processing zone
Section 26 lists activities prohibited in the export processing zone, including carrying on business involving used apparel, carrying on both commercial and manufacturing activities (subject to a saved licence), and commencement restrictions; contraventions are an offence with specified penalties.
Section 26. Prohibited activities within theexport processing zone Section 26(1) No retail trade in goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") produced in the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") or imported into the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") , shall be conducted within the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") . Section 26(2) Goods manufactured in an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") shall not be used in the zone for personal consumption. Section 26(3) Such business services as approved by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") , on advice of the Authority ("the Export Processing Zones Authority established by;") , may be rendered within the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") . Section 26(3A) No person shall, in the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") , carry on business involving the importation or handling of used apparel, including used clothing or footwear. Section 26(3B) Deleted by ActNo. 18 of 2018, Sch . Section 26(3C) Subject to subsection (3D), no person shall, in the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") , carry on both commercial activities and manufacturing activities. Section 26(3D) Subsection (3C) does not apply with respect to the carrying out of commercial and manufacturing activities that a person is licensed to carry out under a licence ("a licence issued under this Act;") issued before subsection (3C) came into operation. Section 26(3E)(a) no person shall commence, on or after the day this subsection comes into operation, to carry on commercial activities in the building if manufacturing activities are already being carried on in the building, by that person or any other person; Section 26(3E)(b) no person shall commence, on or after the day this subsection comes into operation, to carry on manufacturing activities in the building if commercial activities are already being carried on in the building, by that person or any other person. Section 26(4) Any person who contravenes the provisions of this section shall be guilty of an offence and liable to a fine not exceeding two hundred thousand shillings or imprisonment for a term not exceeding three years or to both. [Act No. 4 of 2004 , s. 80, Act No. 18 of 2018 , Sch.] - 27 Verify source ↗
OPERATIONS WITHIN THE EXPORT PROCESSING ZONES - 27. Removal ofgoodsfrom theexport processing zone
Removing or otherwise dealing with goods in an export processing zone is regulated; anyone who contravenes this section commits an offence and may be fined up to two hundred thousand shillings or imprisoned for up to three years, and the goods may be forfeited.
Section 27. Removal ofgoodsfrom theexport processing zone Section 27(1)(a) be removed under supervision of a customs officer ("any person employed in the service of the customs;") from such zone for export ("to take or cause to be taken out of the customs territory or into an export processing zone;") or sent into another export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") or bonded factory either in original package or otherwise; Section 27(1)(b) be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed, or otherwise manipulated or be manufactured in accordance with the provisions of this Act; or Section 27(1)(b)(i) be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed, or otherwise manipulated or be manufactured in accordance with the provisions of this Act; or Section 27(1)(b)(ii) be destroyed under the supervision of the Customs. Section 27(2) Subject to this Act, goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") of any description which would be used directly for the manufacture of other goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") by a licensed export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") or goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") manufactured in any part of the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") which are meant for export ("to take or cause to be taken out of the customs territory or into an export processing zone;") may be brought into an export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") . Section 27(3) Any person who contravenes the provisions of this section shall be guilty of an offence and liable to a fine not exceeding two hundred thousand shillings or imprisonment for a term not exceeding three years or to both and the goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") shall be liable to forfeiture under the customs law. [Act No. 14 of 1991 , Sch.] - 28 Verify source ↗
OPERATIONS WITHIN THE EXPORT PROCESSING ZONES - 28. Exchange controls on receipts and payments byexport processing zoneenterprises
Section 28 sets exchange-control rules for export processing zone enterprises: payments by such enterprises are subject to the Exchange Control Act; receipts must be credited into legally maintained foreign currency accounts when arising from authorized exports or approved transactions; most currency transactions with non-residents are exempt from Exchange Control Regulations except specified export-related regulations; and financial transactions with Kenya residents must be carried out through commercial bank accounts.
Section 28. Exchange controls on receipts and payments byexport processing zoneenterprises Section 28(1)(a) payments of funds by an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") which may be received by residents or non-residents of the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") and debited from the foreign currency account legally maintained and operated by an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") shall be subject to the provisions of the Exchange Control Act (Cap. 113) applicable to all transactions between such persons and non-residents; Section 28(1)(b) receipts of funds by export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises which may be paid by residents or non-residents as defined under the Exchange Control Act (Cap. 113) shall only be credited into foreign currency accounts legally maintained and operated by the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises provided those payments arise in relation to authorized export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") exports or other transactions duly approved under the Exchange Control Act (Cap. 113); Section 28(1)(c) all currency transactions between export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises and non-resident persons, resident outside the customs territory ("the territory in which the customs laws of Kenya apply in full, but does not include an export processing zone;") , shall be exempt from the Exchange Control Regulations, except for the regulations made under this Act and the Exchange Control Act (Cap. 113) to apply to export ("to take or cause to be taken out of the customs territory or into an export processing zone;") processing enterprises. Section 28(2) Notwithstanding subsection (1), all financial transactions, including payment of salaries and wages, between export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises and persons resident in Kenya shall be carried out through commercial bank accounts. [Act No. 7 of 1993 , s. 7.]
Part VIII
BENEFITS TO EXPORT PROCESSING ZONE ENTERPRISES, ETC.
- 29 Verify source ↗
BENEFITS TO EXPORT PROCESSING ZONE ENTERPRISES, ETC. - 29. Benefits accruing toexport processing zoneenterprises, etc.
Export processing zone enterprises, developers and operators are granted a variety of tax and duty exemptions and related benefits (including VAT/excise exemptions on imports for eligible activities, registration exemptions, income tax holidays and a capped income tax rate after the holiday) and other trade and fiscal privileges, with additional exemptions possible by Cabinet Secretary notice in the Gazette.
Section 29. Benefits accruing toexport processing zoneenterprises, etc. Section 29(1) The export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") enterprises, the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") developers and the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") operators shall be granted exemption from all existing and future taxes and duties payable under the Excise Duty Act ( Cap. 472 ) and Value Added Tax Act ( Cap. 476 ) on all export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") imports for use in the eligible business activities of the export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") including machinery and equipment, spare parts, tools, raw materials, intermediate goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") , construction materials and equipment, office equipment and supplies, and transportation equipment subject to the limitations on goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") specified in the Second Schedule to this Act and according to the conditions specified in the Excise Duty Act ( Cap. 472 ) and the Value Added Tax Act ( Cap. 476 ). Section 29(2)(a) exemption from registration under the Value Added Tax Act ( Cap. 476 ); Section 29(2)(b) exemption from the payment of excise duties as specified in the Excise Duty Act ( Cap. 472 ); Section 29(2)(c) exemption from the payment of income tax as specified in the Income Tax Act ( Cap. 470 ) for the first ten years from the date of first sale as an export processing zone enterprise, except that income tax rate will be limited to twenty-five percent for the ten years following the expiry of the exemption granted under this paragraph; Section 29(2)(d) exemption from the payment of withholding taxes on dividends and other payments made to non-residents during the period that the export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") is exempted from payment of income tax under paragraph (c); Section 29(2)(e) exemption from stamp duties on the execution of any instruments relating to the business activities of an export processing zone enterprise ("a corporate body, including a developer or an export processing zone operator which has been granted a licence under this Act;") ; Section 29(2)(f) exemption from quotas or other restrictions or prohibitions on import ("to bring or cause to be brought into the customs territory from a foreign country or from an export processing zone;") or export ("to take or cause to be taken out of the customs territory or into an export processing zone;") trade with the exception of trade in firearms, military equipment or other illegal goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") ; Section 29(2)(g) receipts of export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") exports; Section 29(2)(g)(i) receipts of export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") exports; Section 29(2)(g)(ii) payments for raw materials, intermediate goods ("all kinds of articles, wares, merchandise and stock and, where any such goods are sold under any customs law, includes the proceeds of sale;") , tools, and spares, supplies, construction equipment and construction materials, capital equipment, office equipment, repatriation of royalties, management fees, technology transfer fees, profits, dividends, advertising expenses, inspection fees for quality control, debt service and any other legitimate business expenses; and Section 29(2)(g)(iii) capital transactions, except on capital funds raised from Kenyan persons subject to exchange control in which case remittance of dividends, profits, debt service and any other returns to such capital invested will be subject to the Exchange Control Act (Cap. 113); Section 29(2)(h) exemptions from rent or tenancy controls; and Section 29(2)(i) any other exemptions as may be granted by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for industry; and") for the time being responsible for finance by notice in the Gazette . - 30 Verify source ↗
BENEFITS TO EXPORT PROCESSING ZONE ENTERPRISES, ETC. - 30. Inspection facilities
A customs officer in each export processing zone must offer on-site inspection for imports into and exports out of the export processing zone.
Section 30. Inspection facilities Section The customs officer ("any person employed in the service of the customs;") in each export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") shall offer on-site inspection to the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") for imports into, and exports out of, the export processing zone ("a designated part of Kenya where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside the customs territory but are duly restricted by controlled access and wherein the benefits provided under this Act apply;") .
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Export Processing Zones Act
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