This archive report was first published on 13 July 2019.
July 13, 2019 - De La Rue, a British currency printing firm, has been granted a year's tax-free status under an export license to supply products locally. The company will use its subsidiary registered under the Export Processing Zone (EPZ) to enjoy exemptions from custom duties and value-added taxes on imports of raw materials, capital equipment, and other inputs.
According to a letter from Industrialisation Cabinet Secretary Peter Munya to EPZ acting Chief Executive George Makateto, De La Rue Kenya EPZ has been granted permission to sell up to 100% of its annual production into the customs territory for a period of one year.
EPZ firms also enjoy exemptions from income taxes for 10 years from the date of the first sale, as well as a lower tax rate of 25% for 10 years following the end of the tax holiday. They also get exemptions from withholding tax on dividends and other payments made to non-resident investors for 10 years, as well as exemptions from stamp duty on business transactions.
De La Rue has two firms registered in Kenya: De La Rue Currency and Security Print Ltd (trading) and De La Rue Kenya EPZ Ltd (dormant). The EPZ shareholding is held by Thomas De La Rue AG, domiciled in Switzerland, and British De La Rue Holdings Plc.
The National Treasury has been making payments towards acquiring shareholding in the two firms, part of the £5 million (approximately Sh666.8 million) required.
