(3 Minutes Read)
Two US firms with operations in Kenya have reported enjoying significant tax benefits arising from the move last year by President William Ruto’s administration to cut taxes for local branches of foreign companies
Two US firms with operations in Kenya have reported enjoying significant tax benefits arising from the move last year by President William Ruto’s administration to cut taxes for local branches of foreign companies, according to reports. The cut has been carried out to attract more investments from abroad. According to the government sources, the benefits of the reform measures would accrue in the medium and long terms.
Ormat Technologies Inc., a US company that has power generation operations in Kenya, disclosed a tax benefit of USD 9.4 million (Sh1.49 billion). The Finance Act, of 2023 reduced the corporate tax rate for the branches from 37.5 percent to 30 percent. The decision aligned the corporate tax for foreign companies with the rate paid by resident ones.
US-based tower firm American Tower Corporation (ATC) also reported tax savings against the backdrop of a public backlash locally over mounting taxes and levies. The company raised its income tax provision for the nine months to September but revealed that this increase was partially offset by a fresh tax benefit in Kenya.
Read Also:
https://trendsnafrica.com/kenyas-visa-free-policy-comes-under-scrutiny/
https://trendsnafrica.com/kenyas-inflation-at-6-6-driven-by-increase-in-commodity-prices/
ATC through its local subsidiary ATC Kenya owns 3,645 telecom towers in the country that it leases to local mobile network providers.It is unclear the exact number of foreign companies that are operating in Kenya, but data from the Business Registration Service shows 89 have been registered in the current financial year starting July.
