Kenya has granted tax breaks to entice investors interested in building factories to manufacture human vaccines, including Covid-19.
Investors who make investments of at least Ksh10 billion ($85 million) will benefit from business and income tax breaks negotiated with the government.
This is consistent with the modifications to the law made by the Finance Act, 2022, which President Uhuru Kenyatta signed into law on Friday.
Through the Finance Bill 2022, Parliament changed the Income Tax Act to grant tax breaks to companies that produce vaccines locally.
“A company which is engaged in business under a special operating framework arrangement with the government, incorporated for purposes of undertaking the manufacturer of human vaccines, whose capital investment is at least Sh10 billion, shall be subject to the rate of tax specified in the special operating framework arrangement with the government,” the Finance Act, 2022 states.
Kenya is attempting to construct a full-fledged bulk antigen production facility capable of producing various types of vaccines.
