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{
    "id": 1590414,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590414/?format=api",
    "text_counter": 344,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "Clause 28 is providing for incentives to companies certified by the Nairobi International Financial Centre Authority. An investment of Ksh3 billion will get 15 per cent preferential income tax rate for the first 10 years and 20 per cent for subsequent 10 years. However, there is a provision that they must have a particular percentage of their senior management being Kenyans. For start-up, they will get a preferential income tax rate of 15 per cent for the first three years and a 20 per cent preferential tax rate for subsequent five years. This provision will lead to increased attraction of foreign direct investments and grow our manufacturing as a percentage of GDP. Most importantly, it will attract fintech companies into this country. We have seen Kenya take lead in fintech business. Even during Covid-19 and post Covid-19, while all other sectors of the economy were contracting, we saw financial services sector continue to grow. We must make Kenya the hub of financial services growth across the globe and across Africa. Notice that I will be tabling a Report on Virtual Assets Providers Bill Next week. That will make Kenya the fourth country in Africa to provide a legal framework for trading in virtual assets. They are cryptos, bitcoins, virtual assets, and blockchain technology. If this honourable House passes the Bill, we will see many of these institutions set up base in Kenya and operate in the rest of Africa. The Committee carefully, reviewed Clause 28(b)(ii) and (iii) that proposes to eliminate the preferential 15 per cent corporate tax rate extended to companies involved in the local assembly of motor vehicles and those undertaking construction of at least 100 residential housing units. After comprehensive consultations with stakeholders and members of the public, the Committee resolved to reject the proposal. The Committee recognised that this lower tax rate is a crucial policy tool in supporting strategic sectors that play a significant role in job creation, industrial growth, and addressing the national housing deficit. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}