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Originally published by The Standard Business
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August 21, 2025
5h ago

State pushes new SEZ reforms, China trade deal to boost exports and jobs

State pushes new SEZ reforms, China trade deal to boost exports and jobs

The Ministry of Trade has begun amending laws governing SEZs as it seals a new trade deal with China in a twin strategy aimed at expanding Kenya’s outsourcing industry...

✨ Key Highlights

Kenya is reforming its Special Economic Zones (SEZs) laws and pursuing a new trade deal with China to boost exports and create jobs, particularly in the Business Process Outsourcing (BPO) sector and agricultural exports.

  • The Business Amendment Bill of 2025 proposes five reforms to ease BPO operations in SEZs, allowing them to operate from individual office buildings and exempting capital gains tax on company share transfers.
  • Principal Secretary for Investment Abubakar Hassan announced a new trade deal granting Kenya duty-free and quota-free access to the Chinese market for agricultural products like tea, coffee, and avocados.
  • The Kifaru Exim SEZ at Tatu City, launched on August 21, 2025, is expected to create 600 direct jobs and at least 1,800 indirect jobs, targeting SMEs.
  • Kenya’s BPO industry is projected to grow its revenue from $570 million (Sh72.8 billion) in 2022 to $1.3 billion (Sh169 billion) by 2027.

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