New 2025 Tax Breaks to Make Nairobi a Financial Powerhouse
Kenya has unveiled a major tax incentive scheme to attract startups and large corporations under the newly signed Finance Act 2025. Companies operating under the Nairobi International Financial Centre (NIFC) will now enjoy slashed corporate income tax rates and generous exemptions—provided they meet specific investment conditions.
Startups certified by the NIFC will pay just 15% corporate income tax for the first three years and 20% for the next four years. The aim? To boost innovation and attract foreign and local investment into Kenya’s growing financial hub.
In addition to the startup reliefs, large companies investing at least KSh 3 billion into the Kenyan economy will enjoy a 15% corporate tax rate for 10 years, followed by 20% for the next 10 years. To qualify, these companies must meet several conditions, including ensuring that 70% of senior management are Kenyan citizens and locating their regional headquarters within Kenya.
Dividend tax exemptions have also been extended. Companies reinvesting at least KSh 250 million annually into Kenya will be exempted from withholding tax on dividends.
The government hopes the new tax structure will transform Nairobi into a competitive international financial centre, attracting banks, insurance firms, asset managers, and tech giants. Sectors expected to benefit the most include fintech, healthtech, and agriculture.
The Finance Act also opens doors for firms outside carbon exchange or emissions trading systems—previously the only beneficiaries of tax holidays—to now benefit from reduced tax rates.
According to the Treasury, these reforms are key to turning Nairobi into a regional powerhouse for financial innovation and investment. The NIFC, launched three years ago, is expected to become a magnet for multinational firms eyeing East Africa as a growth frontier.
With billions in tax breaks on the table, Kenya is betting big on business.
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New 2025 Tax Breaks to Make Nairobi a Financial Powerhouse