Kenya Act or statute

Parliament of Kenya

Special Economic Zones Act

Jurisdiction: Kenya
Structure: 40 provisions
Citation: Cap. 517A
Dates: As at 27 Dec 2024

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Dates: As at 27 Dec 2024

Source attribution: Source: Kenya Law

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“The Act may be cited as the Special Economic Zones Act.”

The Act may be cited as the Special Economic Zones Act. Section 2 provides definitions for terms used in the Act, including various types of special economic zones and institutional terms such as "Authority", "Board" and "company". States the object and purpose of the Act as the development of integrated infrastructure facilities. The Cabinet Secretary must declare areas as Special Economic Zones by Gazette on the recommendation of the Authority and in consultation with the Cabinet Secretary responsible for finance. Criteria for designating special economic zones include the nature of the proposed project.

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PRELIMINARY - 1. Short title

The Act may be cited as the Special Economic Zones Act.

Section 1

THE SPECIAL ECONOMIC ZONES AUTHORITY - 11. Functions of the Authority

The Authority must make recommendations to the Cabinet Secretary on designation, approval, establishment, operation and regulation of special economic zones.

Section 11

FINANCIAL PROVISIONS - 21. Establishment of the Fund

Establishes a General Fund vested in the Authority; the Board shall administer it; funds include monies from Parliament, fees and other sources; Authority must pay expenditure from the Fund and must utilize year-end balances as directed by the National…

Section 21

REGULATORY PROVISIONS - 30. Register of licences

The register of licences includes the company name and the physical address at which the company carries on its business.

Section 30

MISCELLANEOUS PROVISIONS - 39. Regulations

The Cabinet Secretary must make regulations, on the recommendation of the Authority, for any matter required or authorized by the Act to be regulated.

Section 39

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Showing 40 of 40 provisions

Provision 32Offence 2Amendment 2Short title

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

The Act may be cited as the Special Economic Zones Act.

Section 1. Short title Section This Act may be cited as the Special Economic Zones Act.

Section 1Verify source

§ 2PRELIMINARY - 2. InterpretationInterpretation

Section 2 provides definitions for terms used in the Act, including various types of special economic zones and institutional terms such as "Authority", "Board" and "company".

Section 2. Interpretation Section In this Act, unless the context otherwise requires— "agricultural zone" means a special economic zone declared as such under section 4 to facilitate the agricultural sector, its services and associated activities; "Authority" means the Special Economic Zones Authority established under section 10 ; "Board" means the Board of Directors of the Authority established under section 12 ; "business processing outsourcing" means the provision of outsourcing services to business for specific business functions or processes such as back office support services in human resources, finance, accounting and procurement amongst other services, and includes the delegation of one or more information technology-intensive business processes to an external provider; "business service park" means a special economic zone declared as such under section 4 to facilitate the provision of services including but not limited to regional headquarters, business processing outsourcing centres, call centres, shared service centres, management consulting and advisory services and other associated services; "business service permit" means an administrative grant of authority to operate services within a special economic zone for which no benefits accruing under this Act are granted; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to industrialization; "company" has the meaning assigned to it by section 2 of the Companies Act ( Cap. 486 ) and includes a company incorporated outside Kenya but registered in Kenya under that Act; "customs control" means the measures applied to ensure compliance with the laws and regulations under the East African Community Customs Management Act, 2004; "customs-controlled area" means the special economic zone where certain enterprises carry out customs controlled operations; "customs territory" means the geographical area of the Republic of Uganda, the Republic of Kenya and the United Republic of Tanzania and any other country granted membership of the East African Community under Article 3 of the Treaty for the Establishment of the East African Community, but does not include a special economic zone; "duty" means duty as defined under the East African Community Customs Management Act; "export" means to take or cause to be taken out of the customs territory or into a special economic zone; "export duties" means customs duties and other charges having an effect equivalent to customs duties payable on the exportation of goods; "Freeport zone" means a designated area placed at the disposal of the special economic zone or freeport authority where goods introduced into the designated area are generally regarded, in so far as import duties are concerned, as being outside the customs territory; "free trade zone" means a special economic zone customs-controlled area where goods are off-loaded for transhipment, storage and may include bulk breaking, repacking, sorting, mixing, trading or other forms of handling excluding manufacturing and processing; "Fund" means the General Fund established under section 21 ; "goods" include all kinds of wares, articles, merchandise, animals, matter, baggage, stores, materials, currency and includes postal items other than personal correspondence and where any such goods are sold under this Act, the proceeds of such sale; "import" means to bring or cause to be brought into the customs territory or a special economic zone; "import duties" means any customs duties and other charges of equivalent effect levied on imported goods; "industrial park" means a special economic zone declared as such under section 4 with integrated infrastructure to facilitate the needs of manufacturing and processing industries; "information communication technology park" means a special economic zone declared as such under section 4 to facilitate the information communication technology sector, its services and associated activities; "infrastructure" means roads, power, water, drainage, telecommunication, sanitation or water treatment plants, networks, buildings or other facilities, necessary for the development and operations of special economic zones and appropriate to their particular sector or cluster focus; "Kenya Revenue Authority" means the Authority established by section 3 of the Kenya Revenue Authority Act ( Cap. 469 ); "licence" means a licence issued under this Act; "livestock zone" means a special economic zone declared as such under section 4 , in which the following activities are carried out: livestock marshalling and inspection; livestock feeding or fattening, abattoir and refrigeration; deboning; value addition; manufacture of veterinary products, and other related activities; "manufacture" means to make, produce, fabricate, assemble, process or bring into existence by manual, mechanical, chemical or biochemical methods into a new product having a distinctive name, character or use and includes processes such as refrigeration, cutting, polishing, blending, beneficiation, re-making and re-engineering; "negative list" means a list of activities not allowed to be undertaken by special economic zone enterprises under the laws of Kenya and those of the East African Community; "proper officer" means any officer whose right or duty is to perform or require the performance of the acts referred to in the East African Community Customs Management Act, 2004; "regional headquarters" means a special economic zone enterprise engaged in headquarters management activities to oversee, manage and control their local, regional and global operations by providing managerial, supervisory, shared services centre and other support services to affiliate companies; "science and technology park" means a special economic zone declared as such under section 4 to facilitate the science and technology sector, its services and its associated activities; "services" means tradable services which are covered under the General Agreement on Trade in Services annexed as 1B to the Agreement establishing the World Trade Organisation concluded at Marrakesh on the 15th day of April, 1994 and any successor agreements or amendments thereto; "special economic zone" means a zone declared as such under section 4 ; "special economic zone enterprise" means a corporate body which has been licensed under this Act; "special economic zone developer" means a corporate body which is engaged in or plans on developing, and which may or may not also operate or plan to operate, a special economic zone under this Act; "special economic zones operator" means a corporate body engaged in the management of a special economic zone and designated as such under the provisions of this Act; and "tourist and recreation centre" means a special economic zone declared as such under section 4 to facilitate tourism and recreation sector, its services and associated activities. [ Act No. 20 of 2024 , s. 26.]

Section 2Verify source

§ 3PRELIMINARY - 3. Object and purpose of ActProvision

States the object and purpose of the Act as the development of integrated infrastructure facilities.

Section 3. Object and purpose of Act Section development of integrated infrastructure facilities;

Section 3Verify source

Part II

THE SPECIAL ECONOMIC ZONES

§ 4THE SPECIAL ECONOMIC ZONES - 4. Declaration of special economic zonesProvision

The Cabinet Secretary must declare areas as Special Economic Zones by Gazette on the recommendation of the Authority and in consultation with the Cabinet Secretary responsible for finance.

Section 4. Declaration of special economic zones Section 4(1) The Cabinet Secretary shall, on the recommendation of the Authority, and in consultation with the Cabinet Secretary responsible for matters relating to finance declare, by notice in the Gazette , any area as a Special Economic Zone as set out in the First Schedule. Section 4(2)(a) define the limits of the zone; and Section 4(2)(b) remain in force until revoked by an order in the Gazette by the Cabinet Secretary and on the recommendation of the Authority. Section 4(3) Where upon receipt of a recommendation under subsection (1) , the Cabinet Secretary considers that gazettement of a special economic zone would infringe upon the public interest, the Cabinet Secretary may refer the recommendation back to the Authority to ensure the protection of that public interest. Section 4(4) A special economic zone shall be a designated geographical area which may include both customs controlled area and on-customs controlled area where business enabling policies, integrated land uses and sector-appropriate on - site and off-site infrastructure and utilities shall be provided, or which has the potential to be developed, whether on a public, private or public-private partnership basis, where development of zone infrastructure and goods introduced in customs-controlled area are exempted from customs duties in accordance with customs laws. Section 4(5) Any public land declared as a special economic zone shall not be alienated for private use except to special economic zone developers, operators or enterprises or other bodies established within a special economic zone. Section 4(5A) The Cabinet Secretary shall, on the recommendation of the Authority, set the minimum amount to be invested in an area declared as a special economic zone. Section 4(6)(a) free trade zones; Section 4(6)(b) industrial parks; Section 4(6)(c) free ports; Section 4(6)(d) information communication technology parks; Section 4(6)(e) science and technology parks; Section 4(6)(f) agricultural zones; Section 4(6)(g) tourist and recreational zones; Section 4(6)(h) business service parks; Section 4(6)(i) livestock zones; Section 4(6)(j) convention and conference facilities.

Section 4Verify source

§ 5THE SPECIAL ECONOMIC ZONES - 5. Criteria for designating special economic zonesProvision

Criteria for designating special economic zones include the nature of the proposed project.

Section 5. Criteria for designating special economic zones Section nature of the proposed project;

Section 5Verify source

§ 6THE SPECIAL ECONOMIC ZONES - 6. Goods to be considered as exported and imported into KenyaProvision

Goods or services moved between the customs territory and a special economic zone are treated as exported from Kenya.

Section 6. Goods to be considered as exported and imported into Kenya Section goods which are taken out from any part of the customs territory and brought into the special economic zone or services provided from part of the customs territory to a special economic zone shall be deemed to have been exported from Kenya; and

Section 6Verify source

§ 7THE SPECIAL ECONOMIC ZONES - 7. Goods and services within a special economic zoneProvision

Section 7. Goods and services within a special economic zone Section for export;

Section 7Verify source

§ 8THE SPECIAL ECONOMIC ZONES - 8. Removal of goods from a special economic zoneOffence

Section 8 sets rules for handling goods in a special economic zone, makes contravention an offence with fines, imprisonment or forfeiture, requires enterprises to follow specific customs regulations, and entitles certain goods remaining in customs-controlled areas to benefits under the Act.

Section 8. Removal of goods from a special economic zone Section 8(1)(a) stored, sold, exhibited, broken up, repackaged, assembled, distributed, sorted, graded, cleaned, mixed, or otherwise manipulated or manufactured in accordance with the provisions of this Act; or Section 8(1)(b) destroyed under the supervision of the proper officer; or Section 8(1)(c) removed, under the supervision of the proper officer from the special economic zone for export or sent into another special economic zone or bonded factory, either in its original package or otherwise. Section 8(2) Subject to this Act and the customs laws of the East African Community, goods of any description which would be used in the activities of a licensed special economic zone enterprise may be brought into a special economic zone. Section 8(3) A person who contravenes this section commits an offence and is liable to a fine not exceeding twenty million shillings or imprisonment for a term not exceeding three years or both and the goods shall be forfeited under the East African Community Customs Management Act. Section 8(4) The special economic zone enterprise shall also operate in conformity with the specific regulations issued under the relevant provisions of the East African Community Customs Management Act. Section 8(5) Goods of any description sold to any person that remains within a customs-controlled area of a special economic zone are not deemed to have entered the customs territory and are entitled to the benefits conferred under this Act. [ Act No. 20 of 2024 , s. 28.]

Section 8Verify source

§ 9THE SPECIAL ECONOMIC ZONES - 9. Receipts and payments of special economic zone enterprisesProvision

Payments and receipts of funds by a special economic zone enterprise are subject to the Central Bank of Kenya Act (Cap. 491) and the Banking Act (Cap. 488), unless otherwise provided under this Act or any other applicable law.

Section 9. Receipts and payments of special economic zone enterprises Section Unless otherwise provided under this Act or any other applicable law, payments and receipt of funds by a special economic zone enterprise shall be subject to the provisions of the Central Bank of Kenya Act ( Cap. 491 ) and the Banking Act ( Cap. 488 ).

Section 9Verify source

Part III

THE SPECIAL ECONOMIC ZONES AUTHORITY

§ 10THE SPECIAL ECONOMIC ZONES AUTHORITY - 10. Establishment of the AuthorityProvision

Establishes the Special Economic Zones Authority and lists functions including suing and being sued, acquiring and disposing of property, entering contracts, borrowing or receiving money and performing acts necessary for its functions.

Section 10. Establishment of the Authority Section 10(1) There is established a body to be known as the Special Economic Zones Authority. Section 10(2)(a) suing and being sued; Section 10(2)(b) purchasing or otherwise acquiring, holding, charging and disposing of movable and immovable property in and out of Kenya; Section 10(2)(c) entering into contracts; Section 10(2)(d) borrowing or receiving money including having its own Fund; and Section 10(2)(e) doing or causing to be done or performing all such things or acts for the proper performance of its functions under this Act, as may be lawfully done or performed by a corporate body.

Section 10Verify source

§ 11THE SPECIAL ECONOMIC ZONES AUTHORITY - 11. Functions of the AuthorityProvision

The Authority must make recommendations to the Cabinet Secretary on designation, approval, establishment, operation and regulation of special economic zones.

Section 11. Functions of the Authority Section make recommendations to the Cabinet Secretary on all aspects of designation, approval, establishment, operation and regulation of special economic zones;

Section 11Verify source

§ 12THE SPECIAL ECONOMIC ZONES AUTHORITY - 12. Board of DirectorsProvision

Section 12 lists the Board of Directors' membership and appointment powers, including that the President appoints the Chairperson, the Cabinet Secretary appoints four directors, the Chief Executive Officer is an ex officio member, and appointments under paragraph (1)(f) require compliance with Chapter Six of the Constitution.

Section 12. Board of Directors Section 12(1)(a) a Chairperson to be appointed by the President; Section 12(1)(b) the Principal Secretary of the ministry for the time being responsible for matters relating to industrialization and trade or his designated alternate; Section 12(1)(c) the Principal Secretary to the treasury or his designated alternate; Section 12(1)(d) the Chairperson of the National Land Commission or his designated alternate; Section 12(1)(e) the Commissioner General of the Kenya Revenue Authority or his designated alternate; Section 12(1)(f) four other directors appointed by the Cabinet Secretary, from the private sector or any other public institution being persons who have distinguished service, relevant experience, and expertise. Section 12(1)(g) the Chief Executive Officer who shall be an ex officio member. Section 12(2) No person shall be appointed under subsection (1) (f) unless such person satisfies the requirements of Chapter Six of the Constitution of Kenya.

Section 12Verify source

§ 13THE SPECIAL ECONOMIC ZONES AUTHORITY - 13. Conduct of business and affairs of the BoardProvision

The Board may regulate its own procedure; the conduct and regulation of its business and affairs are to follow the Second Schedule.

Section 13. Conduct of business and affairs of the Board Section 13(1) The conduct and regulation of the business and affairs of the Board shall be as set out in the Second Schedule. Section 13(2) Except as provided in the Second Schedule, the Board may regulate its own procedure.

Section 13Verify source

§ 14THE SPECIAL ECONOMIC ZONES AUTHORITY - 14. Powers of the BoardProvision

The Board has all powers necessary to perform the Authority's functions and may exercise specific powers such as controlling assets, determining expenditures, receiving funds, opening bank accounts, investing unused funds, and performing incidental acts.

Section 14. Powers of the Board Section 14(1) The Board shall have all powers necessary for the proper performance of the functions of the Authority under this Act. Section 14(2)(a) control, supervise and administer the assets of the Authority in such manner as best promotes the purpose for which the Authority is established; Section 14(2)(b) determine the provisions to be made for capital and recurrent expenditure and for the reserves of the Authority; Section 14(2)(c) receive any grants, gifts, donations or endowments and make legitimate disbursements therefrom; Section 14(2)(d) open such banking accounts for the funds of the Authority as may be necessary; Section 14(2)(e) invest any of the funds of the Authority not immediately required for its purposes in the manner provided in section 25 ; Section 14(2)(f) perform all such other acts or undertake any activity as may be incidental or conducive to the attainment or fulfilment of any of the functions of the Authority under this Act.

Section 14Verify source

§ 15THE SPECIAL ECONOMIC ZONES AUTHORITY - 15. Remuneration of directorsProvision

The Authority must pay its directors remuneration, fees or allowances as it may determine on the advice of the Cabinet Secretary.

Section 15. Remuneration of directors Section The Authority shall pay its directors such remuneration, fees or allowances as it may determine upon the advice of the Cabinet Secretary.

Section 15Verify source

§ 16THE SPECIAL ECONOMIC ZONES AUTHORITY - 16. Chief Executive OfficerProvision

There shall be a Chief Executive Officer of the Authority who shall be appointed competitively by the Board; the Chief Executive Officer must meet specified qualifications and perform duties including serving as secretary to the Board and managing day-to-day affairs and staff subject to the Board's directions.

Section 16. Chief Executive Officer Section 16(1) There shall be a Chief Executive Officer of the Authority who shall be appointed competitively by the Board. Section 16(2)(a) possesses a relevant degree from a recognized institution and has at least ten years working experience in matters relating to industry, trade, law, finance, economics, management, entrepreneurship or engineering; Section 16(2)(b) satisfies the requirements of Chapter Six of the Constitution. Section 16(3)(a) be the secretary to the Board; and Section 16(3)(b) subject to the directions of the Board, be responsible for the day to day management of the affairs and staff of the Board.

Section 16Verify source

§ 17THE SPECIAL ECONOMIC ZONES AUTHORITY - 17. Staff of the AuthorityProvision

The Authority may appoint officers and other staff as necessary to discharge its functions, directly or via one-stop shops, on terms the Board decides and on advice of the Salaries and Remuneration Commission.

Section 17. Staff of the Authority Section The Authority may appoint such officers and other staff as are necessary for the proper discharge of its functions under this Act, whether directly or through one-stop shops, upon such terms and conditions of service as the Board may determine and on the advice of the Salaries and Remuneration Commission.

Section 17Verify source

§ 18THE SPECIAL ECONOMIC ZONES AUTHORITY - 18. Delegation by the AuthorityProvision

The Board may, by resolution (generally or in a particular case), delegate to committees or Board members/officers/employees/agents the exercise of Authority powers or performance of its functions or duties under this Act or any other written law.

Section 18. Delegation by the Authority Section The Board may, by resolution either generally or any particular case, delegate to any committee or to any member, officer, employee or agent of the Board, the exercise of any of the powers or the performance of any of the functions or duties of the Authority under this Act or under any other written law.

Section 18Verify source

§ 19THE SPECIAL ECONOMIC ZONES AUTHORITY - 19. Protection from personal liabilityProvision

Staff of the Authority are not personally liable for acts done in good faith on direction of the Authority or Board; expenses of defending such suits may be paid from the Fund if the court finds the act was done in good faith; the Authority remains liable to pay compensation or damages for injury caused by exercise of its powers.

Section 19. Protection from personal liability Section 19(1) The staff of the Authority shall not be personally liable for an act which is done or purported to be done in good faith on the direction of the Authority or the Board in the performance or intended performance of any duty or in the exercise of any power under this Act. Section 19(2) Any expenses incurred by a 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 on the direction of the Board shall, if the court holds that that act was done in good faith be paid out of the Fund, unless the expenses are recovered by him in that suit or prosecution. Section 19(3) The provisions of this section shall not relieve the Authority of the liability in tort or contract, to pay compensation or damages to any person for any injury to him, his property or any of his interests caused by the exercise of any power conferred by this Act, or any other written law.

Section 19Verify source

§ 20THE SPECIAL ECONOMIC ZONES AUTHORITY - 20. Common sealProvision

Rules governing custody, authentication and effect of the Authority's common seal: the Board directs custody and orders for use; the Chairperson and the Chief Executive Officer authenticate the affixing and may authenticate certain documents and decisions; the Board must nominate a member to authenticate in their absence; affixed and authenticated seals are judicially noticed and presumed valid unless contradicted.

Section 20. Common seal Section 20(1) The common seal of the Authority shall be kept in such custody as the Board may direct and shall not be used except on the order of the Board. Section 20(2) The affixing of the common seal of the Authority shall be authenticated by the signature of the Chairperson and the Chief Executive Officer and any document not required by law to be made under seal and all decisions of the Board may be authenticated by the signatures of both the Chairperson and the Chief Executive Officer. Section 20(3) Notwithstanding the provisions of subparagraph (2), the Board shall, in the absence of either the Chairperson or the Chief Executive Officer in a particular matter, nominate one member to authenticate the seal on behalf of either the Chairperson or the Chief Executive Officer. Section 20(4) The common seal of the Authority when affixed to a document and duly authenticated shall be judicially noticed and unless the contrary is proved, any necessary order or authorization by the Board under this section shall be presumed to have been duly given.

Section 20Verify source

Part IV

FINANCIAL PROVISIONS

§ 21FINANCIAL PROVISIONS - 21. Establishment of the FundProvision

Section 21. Establishment of the Fund Section 21(1) There is established a Fund of the Authority to be known as the General Fund which shall vest in the Authority and shall be administered by the Board. Section 21(2)(a) monies provided by Parliament for that purpose, towards expenditure incurred by the Authority in the exercise of its powers or the performance of its functions under this Act; Section 21(2)(b) such fees, monies or assets as may accrue to or vest in the Authority in the course of the exercise of its powers or the performance of its functions under this Act or under any written law; and Section 21(2)(c) all monies from any other source provided for or donated or lent to the Authority. Section 21(3) There shall be paid out of the funds of the Authority all such sums of money required to defray the expenditure incurred by the Authority in the exercise, discharge and performance of its objectives, functions and duties under this Act. Section 21(4) The balance of the funds of the Authority at the end of the financial year shall be utilized as directed by the National Treasury.

Section 21Verify source

§ 22FINANCIAL PROVISIONS - 22. Financial yearProvision

The Authority's financial year is a period of twelve months ending on 30 June each year.

Section 22. Financial year Section The financial year of the Authority shall be the period of twelve months ending on the thirtieth of June in each year.

Section 22Verify source

§ 23FINANCIAL PROVISIONS - 23. Annual estimatesCommencement

The Board must prepare, approve and submit annual revenue and expenditure estimates before each financial year; after Cabinet Secretary approval the Board may not vary the estimates without that Secretary's consent.

Section 23. Annual estimates Section 23(1) At least three months before the commencement of each financial year, the Board shall cause to be prepared estimates of the revenue and expenditure of the Authority for that year. Section 23(2)(a) the payment of allowances and the charges in respect of the directors and the salaries, allowances and other charges in respect of staff of the Authority; Section 23(2)(b) the payment of pensions, gratuities and other charges in respect of staff of the Authority; Section 23(2)(c) the proper maintenance of the buildings and grounds of the Authority; Section 23(2)(d) the maintenance, repair and replacement of the equipment and other property of the Authority; Section 23(2)(e) the creation of such reserve funds to meet future or contingent liabilities in respect of retirement benefits, insurance or replacement of buildings or equipment, or in respect of such other matters as the Board may deem appropriate; Section 23(2)(f) the funding of promotion and marketing of special economic zones; Section 23(2)(g) the funding of training, research and development activities of the Authority; and Section 23(2)(h) any other expenditure incurred by the Authority in the exercise, discharge, and performance of its functions this Act. Section 23(3) The annual estimates shall be approved by the Board before the commencement of the financial year to which they relate and shall be submitted to the Cabinet Secretary for approval and after the Cabinet Secretary's approval, the Board shall not vary the annual estimates of the Authority without the consent of the Cabinet Secretary.

Section 23Verify source

§ 24FINANCIAL PROVISIONS - 24. Accounts and auditProvision

The Board must keep proper books and records of the Authority's income and assets; the Authority must submit an annual operations report to the Cabinet Secretary within four months after the financial year end.

Section 24. Accounts and audit Section 24(1) The Board shall cause to be kept all proper books and records of income, assets of the Authority. Section 24(2)(a) a statement of the income and expenditure of the authority during that year; and Section 24(2)(b) a balance sheet of the Authority on the last day of that year. Section 24(3) The accounts of the Authority shall be audited and reported upon in accordance with the Public Audit Act ( Cap. 412B ). Section 24(4) The Authority shall within four months of the closure of the financial year, submit to the Cabinet Secretary, a report on the operations of the Authority during that year.

Section 24Verify source

§ 25FINANCIAL PROVISIONS - 25. Investment of fundsProvision

The Authority may invest its funds in government securities or other securities approved by the National Treasury; trustees may by law invest in trust funds in relation to such government securities.

Section 25. Investment of funds Section The Authority may invest its funds in government securities, in which for the time being trustees may by law invest in trust funds, or in any other securities which the National Treasury may, from time to time, approve for that purpose.

Section 25Verify source

Part V

REGULATORY PROVISIONS

§ 26REGULATORY PROVISIONS - 26. Licence to operate in special economic zoneProvision

Section 26. Licence to operate in special economic zone — carry on business as a special economic zone developer or operator or enterprise;

Section 26. Licence to operate in special economic zone Section carry on business as a special economic zone developer or operator or enterprise;

Section 26Verify source

§ 27REGULATORY PROVISIONS - 27. Application and issue of licenceAmendment

Sets rules for applying for, issuing, amending, suspending and revoking special economic zone licences: applicants must apply in the prescribed form to the Authority; the Authority may issue licences on recommendation and payment, must assess applications, must decide within one month, may amend/suspend/revoke licences and must publish approved applications and regulations within specified timeframes.

Section 27. Application and issue of licence Section 27(1) A person who, intends to carry on business as a special economic zone developer, operator or enterprise, shall apply in the prescribed form to the Authority for an appropriate licence or for a renewal of the licence. Section 27(2) On receiving an application for licence or for a renewal of a licence, the Authority, may on the recommendation of the Commissioner of Customs and upon payment of the prescribed fee, issue to the applicant the appropriate licence or renew the licence. Section 27(3) In evaluating applications for special economic zone developer, operator and enterprise licences, the Authority shall assess the specific engineering and financial plans, financial viability, and environmental and social impact of the applicant's proposed special economic zone project, as appropriate. Section 27(4) The Authority shall expeditiously render its decisions on licensing under this Act within one month from the date on which the duly completed application form is submitted together with relevant supporting documents. Section 27(5)(a) be in the prescribed form; Section 27(5)(b) authorize the licensee to carry on business as a special economic zone developer, operator or enterprise; Section 27(5)(c) be specific with regard to the activity to be carried out under the licence; Section 27(5)(d) be valid for such period as the Authority may prescribe; Section 27(5)(e) contain such other conditions as the Authority deems necessary. Section 27(6)(a) be amended at any time on written notice to the holder by the authority, if in its opinion the amendment is necessary; or Section 27(6)(b) be suspended or revoked by the Authority if the holder fails to comply with the conditions contained in the licence laid down in this Act or in any regulations made thereunder and where a licence is suspended or revoked, the holder shall take such steps as may be recommended by the Authority. Section 27(7)(a) publish in the Kenya Gazette all approved applications to establish a special economic zone; and Section 27(7)(b) within one hundred and eighty days of the coming into force of this Act, publish regulations on the application, issuance, suspension, revocation and appeal process on licensing of special economic zones.

Section 27Verify source

§ 28REGULATORY PROVISIONS - 28. Qualifications of a special economic zone developer and operatorProvision

A special economic zone developer and operator must be a company incorporated in Kenya or a public entity for the purpose of undertaking special economic zone activities.

Section 28. Qualifications of a special economic zone developer and operator Section be a company incorporated in Kenya or a public entity, for the purpose of undertaking special economic zone activities;

Section 28Verify source

§ 29REGULATORY PROVISIONS - 29. Special economic zone enterprisesProvision

Benefits under Part VI only accrue to an enterprise if it holds a valid licence issued by the Authority.

Section 29. Special economic zone enterprises Section 29(1) The benefits prescribed in Part VI of this Act shall not accrue to any enterprise unless it holds a valid licence issued by the Authority. Section 29(2)(a) is incorporated in Kenya whether or not it is one hundred per cent foreign owned; Section 29(2)(b) proposes to engage in any activity or activities eligible to be undertaken by a special economic zone enterprise in the special economic zone; Section 29(2)(c) does not have a negative impact on the environment or engage in activities impinging on national security or presenting a health hazard; and Section 29(2)(d) conducts business in accordance with the laws for the time being in force save for any exemptions under this Act.

Section 29Verify source

§ 30REGULATORY PROVISIONS - 30. Register of licencesProvision

The register of licences includes the company name and the physical address at which the company carries on its business.

Section 30. Register of licences Section 30(1)(a) the company name; and Section 30(1)(b) the physical address at which the company carries on its business. Section 30(2)(a) the holder of the licence ceases to carry on the business to which the licence relates; or Section 30(2)(b) a change occurs in any particulars which are required to be entered in the register of licence holders with respect to the holder of a licence,

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§ 30AREGULATORY PROVISIONS - 30A. Issuance of Special Economic Zone Business Service PermitProvision

A person who intends to provide a service in a special Economic Zone for which no incentive or benefit accrues under the Act must apply in the prescribed form to the Authority for a special economic zone business service permit or renewal.

Section 30A. Issuance of Special Economic Zone Business Service Permit Section 30A(1) A person who intends to provide a service within a special Economic zone for which no incentive or benefit accrues under this Act, shall apply in the prescribed form to the Authority for a special economic zone business service permit or for a renewal of the permit. Section 30A(2) The Cabinet Secretary may prescribe in regulations the rights and obligations which shall apply upon the issuance of the permit issued under [ Act No. 20 of 2024 , s. 31.]

Section 30AVerify source

Part VI

RIGHTS AND OBLIGATIONS OF SPECIAL ECONOMIC ZONE ENTITIES

§ 31RIGHTS AND OBLIGATIONS OF SPECIAL ECONOMIC ZONE ENTITIES - 31. Activities permitted within a special economic zoneProvision

Permitted activities within a special economic zone are the activities in respect of which the enterprise is licensed.

Section 31. Activities permitted within a special economic zone Section the activities in respect of which the enterprise is licensed; and

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§ 32RIGHTS AND OBLIGATIONS OF SPECIAL ECONOMIC ZONE ENTITIES - 32. Facilities within a special economic zoneProvision

The Authority may require a zone developer to provide and maintain facilities (including adequate enclosure); the Authority must not order cessation or removal of goods without first hearing the concerned enterprise; proper officers must offer on-site inspections for imports and exports; and the Authority is responsible for monitoring and enforcing rules in special economic zones.

Section 32. Facilities within a special economic zone Section 32(1) Taking into account the general intent of the special economic zone developer licence, the Authority may require the special economic zone developer to provide and maintain in a special economic zone such facilities including adequate enclosure to separate a special economic zone from the customs territory, as it may consider necessary for the proper and efficient function of the zone. Section 32(2) The Authority shall not issue an order for cessation of any activities or removal of any goods without first giving the concerned enterprise an opportunity of being heard. Section 32(3) The proper officers in each special economic zone shall offer on-site inspection to the special economic zone for imports into, and exports out of, the special economic zone. Section 32(4) The Authority shall be responsible for the monitoring and enforcement of all rules, within special economic zones.

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§ 33RIGHTS AND OBLIGATIONS OF SPECIAL ECONOMIC ZONE ENTITIES - 33. Rights and obligations of an economic zone developer or operatorOffence

Special economic zone developers and operators have powers to manage, lease, develop and provide services for zones, and must carry out development, security, record-keeping and lease-registration duties; failure to keep required accounts is an offence with fines or imprisonment.

Section 33. Rights and obligations of an economic zone developer or operator Section 33(1)(a) act or appoint a special economic zone operator to undertake management and administration of the special economic zone on its behalf subject to subsections (2) , (3) and (4) of this section, section 28 (b) and such other licensing requirements as may be prescribed; Section 33(1)(b) lease, sub-lease or sell land or buildings to licensed special economic zone operators special economic zone service permit holders and enterprises and residents, and charge rent or fees for other services that may be provided; Section 33(1)(c) acquire, dispose or transfer special economic zone lands or other assets; Section 33(1)(d) develop, operate and service special economic zone lands and other assets in conformity with applicable law and its licence; Section 33(1)(e) provide utilities and other services in the special economic zone, in accordance with its licence, and to charge fees for such services; Section 33(1)(f) provide utilities and other services outside the special economic zone in conformity with applicable law; Section 33(1)(g) enjoy the benefits that may accrue under the provisions of this Act; Section 33(1)(h) enter into contracts with private third parties for the development, operation, and servicing of special economic zone lands and other assets, including on-site and off-site infrastructure; Section 33(1)(i) enter and freely participate in international financial markets, without any legal impediments or restrictions, to obtain funds, credits, guarantees and other financial resources; and Section 33(1)(j) advertise and promote the special economic zone for which it holds a licence to potential investors and service providers. Section 33(2)(a) perform such physical development works or make such improvements to the special economic zone site and its facilities as may be required according to the plans approved by the Authority; Section 33(2)(b) provide adequate measures to segregate the zone area from the customs territory for the protection of revenue together with suitable provisions for the movement of persons, conveyances, vessels and goods entering or leaving the zone; Section 33(2)(c) provide or cause to be provided, adequate security on the site, as may be determined by the Authority in its licence; Section 33(2)(d) adopt and enforce such rules and regulations within the special economic zone that promote safe and efficient business operations; Section 33(2)(e) maintain adequate and proper accounts, and other records in relation to its activities, employment statistics, business and report on zone activities, performance and development to the Authority on a periodic basis or as required by the Authority; and Section 33(2)(f) register all leases with the Authority. Section 33(3) The accounts and records required under paragraph (e) of subsection (2) shall be maintained in any of the official languages. Section 33(4) A special economic zone developer or a special economic zone operator who fails to maintain adequate and proper accounts and other records as required by this section commits an offence and is liable on conviction to a fine not exceeding five million shillings or to imprisonment for a term not exceeding six months, or both. [ Act No. 20 of 2024 , s. 32.]

Section 33Verify source

§ 34RIGHTS AND OBLIGATIONS OF SPECIAL ECONOMIC ZONE ENTITIES - 34. Rights of special economic zone enterprisesProvision

Special economic zone enterprises are entitled to full protection of their property rights against nationalization or expropriation.

Section 34. Rights of special economic zone enterprises Section the full protection of its property rights against all risks of nationalization or expropriation;

Section 34Verify source

§ 35RIGHTS AND OBLIGATIONS OF SPECIAL ECONOMIC ZONE ENTITIES - 35. Benefits accruing to special economic zone enterprises, developers and operatorsRepeal

Licensed special economic zone enterprises, developers and operators are granted specified tax incentives; they are entitled to work permits up to 20% of full‑time employees; additional permits may be obtained on the Authority's recommendation; incentives apply for up to ten years from licence issuance.

Section 35. Benefits accruing to special economic zone enterprises, developers and operators Section 35(1) All licensed special economic zone enterprises, developers and operators shall be granted tax incentives as specified in the respective tax laws. Section 35(2)(a) stamp duty on the execution of any instrument relating to the business activities of special economic zone enterprises, developers and operators; Section 35(2)(b) the provisions of the Foreign Investments and Protection Act ( Cap. 518 ) relating to certificate for approved enterprise; Section 35(2)(c) the provisions of the Statistics Act ( Cap. 112 ); Section 35(2)(d) the payment of advertisement fees and business service permit fees levied by the respective County Governments' finance Acts; Section 35(2)(e) general liquor licence and hotel liquor licence under the Alcoholic Drinks Control Act ( Cap. 121 ); Section 35(2)(f) manufacturing licence under the Tea Act ( Cap. 343 ); Section 35(2)(g) licence to trade in unwrought precious metals under the Trading in Unwrought Precious Metals Act (Cap. 309)(repealed); Section 35(2)(h) filming licence under the Films and Stages Plays Act ( Cap. 222 ); Section 35(2)(i) rent or tenancy controls under the Landlord and Tenant (Shops, Hotels and Catering establishments) Act ( Cap. 301 ); and Section 35(2)(j) any other exemption as may be granted under this Act in consultation with the Cabinet Secretary for that matter, by notice in the Gazette . Section 35(3) The licensed special economic zone enterprises, developers and operators shall be entitled to work permits of up to twenty per cent of their full-time employees; Section 35(4) Despite subsection (3) , on the recommendation of the Authority, additional work permits may be obtained for specialised sectors. Section 35(5) The incentives and tax benefits granted to a licensed special economic zone developer, operator or enterprise under this Act or any other written law shall apply for a period not exceeding ten years from the date of issuance of the licence. [Act No. 38 of 2016 , s. 67, Act No. 20 of 2024 , s. 33.]

Section 35Verify source

Part VII

MISCELLANEOUS PROVISIONS

§ 36MISCELLANEOUS PROVISIONS - 36. Powers of the Cabinet SecretaryProvision

The Cabinet Secretary may direct the Authority to furnish returns, accounts and other information in prescribed form about the Authority's work and activities.

Section 36. Powers of the Cabinet Secretary Section The Cabinet Secretary may from time to time direct the Authority to furnish in such form as may be prescribed returns, accounts and any other information with respect to the work and activities of the Authority.

Section 36Verify source

§ 37MISCELLANEOUS PROVISIONS - 37. Dispute resolutionProvision

When a dispute arises between a special economic zone developer, operator or enterprise and the Authority or the Government, the parties should seek an amicable settlement through negotiations within thirty days; if they do not agree on arbitration mechanisms under subsection (2)(a) and (b) within fourteen days, the Arbitration Act applies. Arbitration may be conducted under UNCITRAL, ICC (Paris), ICSID, bilateral or multilateral investment protection agreements, or the Arbitration Act.

Section 37. Dispute resolution Section 37(1) Where a dispute arises between a special economic zone developer, operator or enterprise and the Authority or the Government in respect of the special economic zone entity, all efforts shall be made to settle the dispute through negotiations and mutual agreement for an amicable settlement within thirty days. Section 37(2)(a) in accordance with the rules of procedure set forth for arbitration by the United Nations Commission on International Trade Law, the International Chamber of Commerce in Paris or the International Center for Settlement of Investment Disputes Resolution; or Section 37(2)(b) within the framework of any bilateral or multilateral agreement on investment protection to which the Government and the country of which the investor is a national are parties; or Section 37(2)(c) in accordance with the Arbitration Act ( Cap. 49 ). Section 37(3) If the parties do not agree to the mechanisms of settlement of dispute under subsection 2(a) and (b) within fourteen days, the Arbitration Act shall apply.

Section 37Verify source

§ 38MISCELLANEOUS PROVISIONS - 38. Exemption from Stamp dutyProvision

The Authority is exempt from paying stamp duty on land transactions.

Section 38. Exemption from Stamp duty Section The Authority shall be exempt from payment of any stamp duty chargeable under the Stamp Duty Act ( Cap. 480 ) for land transactions.

Section 38Verify source

§ 39MISCELLANEOUS PROVISIONS - 39. RegulationsAmendment

The Cabinet Secretary must make regulations, on the recommendation of the Authority, for any matter required or authorized by the Act to be regulated.

Section 39. Regulations Section 39(1) The Cabinet Secretary shall, upon the recommendation by the Authority, make regulations in respect of any matter required by this Act to be prescribed or in respect of which regulations are authorized to be made. Section 39(2)(a) determine criteria for the designation and gazetting of all special economic zones; Section 39(2)(b) determine the application process, criteria, conditions, terms and procedures for designation of special economic zones and licensing of special economic zone developers, operators and enterprises; Section 39(2)(c) determine the form of licences to be issued under this Act and the procedures from amendment and revocation of the licences; Section 39(2)(d) determine the general conditions of entry of persons into a special economic zone; Section 39(2)(e) require information from special economic zone developers, operators and enterprises; Section 39(2)(f) determine the rules pertaining to the establishment, functioning, operations and procedures for the special economic zones one-stop-shops; Section 39(2)(g) determine the investment rules for special economic zones; Section 39(2)(h) determine the land use rules for special economic zones, development and building controls as well as utility provisions and operations; and Section 39(2)(i) determine the fees to be levied under this Act.

Section 39Verify source

Legislative relationships

8 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

7 instruments

Act States the object and purpose of the Act
Section 3
Authority powers or performance of its functions or duties under this Act
Section 18
Authority shall be audited and reported upon in accordance with the Public Audit Act
Section 24
Authority under this Act
Section 14
Companies Act
Section 2
East African Community Customs Management Act
Section 8
Foreign Investments and Protection Act
Section 35

G–M

1 instrument

Kenya Act
Section 9

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