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	You are here: Help CadifKenya > Invest in Africa > Investing in Kenya > Guarantees and incentives for investors
About CadifKenya Home Background information Program and services Activities Events Projects Help CadifKenya Partners and Funders Donate online Volunteer Invest in Africa Tell a friend about CadifKenya Stay in touch Act up! Opportunities and contact Subscribe to newsletter CadifKenya Blog Forum Structure and volunteer profiles Log in Website donated and hosted by designed by Aleksandra Gehrke, a Virtual Volunteer.	Kenya provides the following guarantees to local and foreign investors: Guarantee Against Expropriation The Constitution of Kenya provides guarantees against expropriation of private property, which may occur for reasons of security or public interest. In such a case, a fair and prompt compensation is guaranteed. Repatriation of Capital and Profits Capital repatriation, remittance of dividends and interest are guaranteed to foreign investors under the Foreign Investment Protection Act (FIPA) (Cap 518). Investors can repatriate: After tax profits, including retained profits which have not been capitalized; The proceeds of the investment after payment of the relevant taxes; Principal and interest associated with any loan. Other Guarantees Kenya is a member of the World Bank-affiliated Multilateral Investment Guarantee Agency (MIGA), which issues guarantees against non-commercial risk to enterprises that invest in member countries. Kenya is also a member of the International Centre for Settlement of Investment Disputes (ICSID), and of the Africa Trade Insurance Agency (ATIA). The Government policy is aimed at extending facilitation measures in favor of private sector investment. The following is a summary of current incentives that have been put in place: Tax Incentives Investment allowance Investment allowance is provided as an incentive for investment in the manufacturing and hotel sectors at the rate of 100% countrywide. For Manufacturers Under Bond, the applicable rate is 100%. In addition, eligible capital expenditures have been expanded to include certain infrastructure and environmental protection equipment related to the manufacturing activity. Deprecation Liberal rates are allowed for the depreciation of assets based on book value as follows: Buildings Industrial buildings 2.5% (Straight Line) Hotels 4.0 % (Straight Line) Machinery Tractors, combine harvesters, earth- moving equipment, and similar vehicles 37.5% (Declining Balance) Other self-propelled vehicles, including aircraft 25% (Declining Balance) All other machinery, including ships 12.5% (Declining Balance) Computers and other office equipment 33.3% (Declining Balance) Export promotion program Duty Remission Facility Materials imported for use in manufacturing for export; the production of raw materials for export; or the production of duty free items for sale domestically, are eligible for duty remission. Applications for this facility should be made to the Tax remission for export office (TREO)at the Ministry of Finance. Go back to investing in Kenya.	Click here to see our gallery CadifKenya P.O.BOX 9104(40140) KISUMU-KENYA Send us an e-mail Copyright (C) 2006 by CadifKenya. All Rights Reserved.