NewzNAIROBI, Kenya, Jul 30 – Kenya must provide a predictable and stable tax regime if it is to attract more domestic and foreign investment, industry experts have said, warning that frequent policy changes are increasing investor risk and undermining long-term business confidence. Speaking during the Capital FM Investment, Trade and Opportunity Town Hall at Strathmore University, the panelists argued that while taxation is essential for funding public services, policy certainty—not just tax incentives—has become one of the most important factors influencing investment decisions. They said investors are willing to pay taxes provided the rules remain clear, transparent and consistent throughout the life of their investments.
Sameer Raja, Assistant General Manager and Investment Advisor at I&M Capital Limited, said Kenya’s capital markets demonstrate how clear and predictable tax policies can stimulate investment. “From an investment perspective, the tax laws are fairly clear, particularly around government securities and infrastructure bonds,” Raja said. “Infrastructure bonds attracted significant demand because they were tax-free, and the growing focus on green bonds with tax incentives is the right direction for encouraging sustainable investment.” He said targeted incentives and policy consistency have helped deepen Kenya’s capital markets and could mobilise more private capital into strategic sectors such as infrastructure and climate finance.
However, the panel noted that the predictability enjoyed by capital market investors has not always been replicated across the wider business environment. Onesmus Kiema, Associate Director for Tax and Regulatory Services at KPMG East Africa, said certainty over future tax obligations is fundamental to investment planning. “Investors always ask whether the tax system is predictable because they need certainty before committing their capital.” “If incentives are withdrawn midway through an investment cycle, businesses can struggle to meet financial obligations after having made decisions based on earlier tax policies.” Kiema acknowledged the government’s need to raise revenue to finance healthcare, education, infrastructure and security, but said tax reforms should be implemented in a way that preserves investor confidence.
He added that greater transparency in the use of tax revenues would also strengthen compliance and… NAIROBI, Kenya, Jul 30 – Stable government policies and sustained investment in infrastructure will determine whether Kenya’s Special Economic Zones (SEZs) evolve into engines of industrialisation and export-led growth, Capital FM Managing Director Symon Bargurei has said. Speaking during the Capital FM Business, Investment and Growth Townhall at Strathmore University on Thursday, Bargurei said Kenya has laid many of the foundations investors seek, but warned that long-term competitiveness will depend on policy certainty, efficient institutions and an enabling business environment.
He said flagship projects such as the Dongo Kundu Special Economic Zone and Konza Technopolis demonstrate Kenya’s shift from relying on investment incentives to building integrated ecosystems that support manufacturing, innovation, technology transfer and exports. “Transformation is not built on incentives alone. It combines policy consistency, quality infrastructure, skills development and technology to create globally competitive ecosystems,” Bargurei said.
Kenya’s industrial bet: Are Special Economic Zones paying off? He described the projects as strategic platforms capable of accelerating industrialisation while positioning Kenya as a regional hub for high-value investment. “Dongo Kundu SEZ, Konza Technopolis and other strategic developments are more than infrastructure projects.
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