CENTRAL BANK OF KENYA. Last Update 02/10/2020
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map of the special and export processing zones in mombasa kenya

Home for Export Processing Zones and Special Economic Zones in Kenya

Mombasa has been home to EPZs since 1996;the coastal regional office is located in Mombasa and is responsible for the largest number of zones in Kenya 

Market Access 

Mombasa has the largest concentration of Export Processing Zones (EPZ) in Kenya and will soon also be home to a 3,277 acre Special Economic Zone (SEZ), which will include shore-front sites and its own port. Kenya is a key member of the increasingly affluent East African Community of close to 400 million people and participates in trade blocs and global agreements, such as COMESA, AGOA and EPA, facilitating strong and sustainable market access opportunities. Mombasa County is constantly working to expand its business services for local and international markets. 

Export Processing Zones 

Mombasa has been home to an EPZ since 1996;the coastal regional office is located in Mombasa and is responsible for the largest number of zones in Kenya. Investors receive support from a designated officer within the Export Processing Zone Authority (EPZA) to facilitate the investment and registration process on their behalf. Incentives offered to investors include: 

Investment Benefits 

  • 10 year corporation tax holiday and 25% tax thereafter. 
  • 10 year withholding tax holiday. 
  • Stamp duty exemption. 
  • 100% investment deduction on initial investment applied over 20 years. 
  • Perpetual duty and VAT exemption on inputs. 

Mombasa’s EPZ is dominated by apparel manufacturers and tea enterprises, but also includes confectionery, medical supply firms and fish processing. There is one public EPZ and numerous private zones. It is possible to have an EPZ licence as a manufacturer, a developer or a service provider. 

Special Economic Zones (SEZ)

The Dongo Kundu area of Mombasa and Kwale County will host a 3,277 acres SEZ from 2018 onward. The Dongo Kundu SEZ will include an industrial zone, free trade zone, residential zone, re-export zone, multipurpose port and conferencing and exhibition facilities as well as a power plant. SEZs are designed to complement the current EPZs, offering greater flexibility to trade within Kenya and the East African Community and to pursue non-manufacturing activities. Incentives for SEZ enterprises, developers and operators will include: 

Investment Benefits

  • Exemption from excise duty, customs duty, VAT and stamp duty. 
  • Exemption from acquiring certain licenses specific to their businesses. Up to 20% of their full time employees may be foreign. 
  • Corporate income tax rate of 10% for the first 10 years of operation, increasing to 15% for the next 10 years. 
  • Dividends received by SEZ’s will be exempt from tax. 



acres for a Special Economic Zone