Kenya mulls tax incentives to spur growth of ICT manufacturers

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Kenya mulls tax incentives to spur growth of ICT manufacturers

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NAIROBI, Oct. 3 (Xinhua) -- Kenya is considering putting in place a raft of tax incentives to spur growth of information and communication technology (ICT) manufacturers, officials said on Wednesday.

Jerome Ochieng, principal secretary in the ministry of ICT, told a media briefing in Nairobi that Kenya is prioritizing the development of the ICT industry because it is an enabler for all sectors of the economy.

"We are currently in talks with the ministry of industrialization and the national Treasury to reduce taxes for firms who set up ICT-related manufacturing plants in the country," Ochieng said during a CEO forum for companies implementing President Uhuru Kenyatta's Big Four Agenda on affordable housing, universal health care, food security, and manufacturing.

He said two local companies are assembling laptops for use for the cou ntryh's digital literacy project.

The government is in discussion with the two computer assembling firms to support them expand their operations so that Kenya can become an ICT regional manufacturing hub, Ochieng added.

He said Kenya is planning to attract global ICT manufacturing firms to move their operations to Kenya to take advantage of the large pool of skilled workers.

The value of the ICT sector in 2017 was approximately 3.45 billion dollars, making its contribution to the gross domestic product (GDP) to less than 5 percent of the economy's output, Ochieng said.

A robust ICT industry will help to expand the digital economy, he said.

Source: Google News Kenya | Netizen 24 Kenya

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