Kenya Tourism Investment Opportunities
Total Page:16
File Type:pdf, Size:1020Kb
KENYA Tourism Finance Corporation TOURISM Utalii House, Uhuru Highway Po Box 42013-00100 GPO, Nairobi, Kenya Tel: 254 (0)20 3224000 INVESTMENT www.tourismfinance.go.ke [email protected] OPPORTUNITIES @TourismFinance Tourism Finance Corporation tourismfinancecorporationke TABLE OF CONTENTS Who we are ................................................................................ 4 The industry ................................................................................ 5 Incentives ..................................................................................... 7 Diversified products ................................................................ 9 Opportunities within the Counties .................................10 Central Island - Lake Turkana 2 3 KENYA'S TOURISM INDUSTRY Tourism Finance Corporation (TFC) is a specialized Development Financial Institution KES119.9b established in 1965 through an act of parliament CAP 382 of the laws of Kenya. Total Visitor Spend 20.3% GDP Direct Contribution International Tourist arrivals VISION The leading financial partner driving 1.3 Million 1.4 Million sustainable tourism development in Kenya. MANDATE 96.3 1. Provide financial assistance to investors or entrepreneurs in 3.7% 3.7% the Tourism sector including small, medium and MISSION community based enterprises for development, expansion and maintenance of Tourism activities and services. To provide customer focused financial 2. Provide for investment opportunities in the Tourism sector, 2016 2017 solutions that drive tourism sector and development and socio-economic growth. 3. Provide business advisory services to the Tourism sector. Number of hotel bed nights Purpose of visit 68.4% 13.7% 6.4m 5.9% OUR SERVICES 2016 12% 7.2m 01 SUPPORT OF 03 Holiday (68.40%) Business (13.70%) Transit (5.90%) INVESTMENT 2017 Other (12%) PROJECTS PROMOTION OF KENYA • Offering all necessary LOAN FINANCING 150 AS A TOURISM INVESTMENT information on tourism DESTINATION opprtunities in Kenya • Supporting investments • Profiling of Investment • Offer financial products projects in all phases of 100 Capital Investment in tourism projects to the Tourism sector implementation through for new and established • Support strategic Travel & Tourism is expected to have attracted capital a tailor made approach. private sector operators. product development 50 through engaging the investment of KES84.9bn in 2017. This is expected to rise private sector and by 7.1% in 2018, and rise by 4.4% pa over the next ten communities years to KES139.3bn in 2028. 0 02 2015 2016 2017 2018E 2028F 4 5 A. INDUSTRIAL DEDUCTIONS WHY KENYA: Industrial Deductions cover capital expenditure incurred by a person on the construction of an industrial building to be used in a business carried out by them or their lessee. This allowance is claimed by the person who incurred the capital expenditure i.e. the owner of the building and the building must be used for the purpose of the business only so as to OUR VALUE PROPOSITION enjoy the industrial building deduction. B. INVESTMENT DEDUCTIONS Relatively well East Africa’s establishes social and 2.5% capital deduction applicable within the first Largest Economy physical infrastructure Industrial Building Market Access Forty (40) years of operation. Hotels 10% capital deduction applicable within the first 10 years of operation Low Risk Investment Political and Macro Environment Economic Stability Building in uses for training 100% capital deduction. Rental residential building approved by Well established 25% capital deduction. private sector the minister in a planneddeveloped area Strategic Location as Regional Financial, Communication and Transport Hub Commercial building 25% capital deduction in a developed area Hostels and Educational Buildings 50% capital deduction for the first 2 years of operation. Reducing energy Reducing energy certified by the commissioner These buildings include; Laboratory, Workshops, cost and improving cost and improving Accommodation halls, classrooms, dining halls/cafeteria, availability other halls for use by the students, administration building, Highly skilled availability sporting facilities and staff quarters. human resource 1. Duty Exemption The Government, upon application, exempts import duty on the following items and equipment for hotel Vibrant capital construction or refurbishment; markets Unique products Customs duty exception is provided for under the East African Community Customs Management Act, 2004, Fifth Schedule, Part B, Item 21 for the following items:- 6 7 1. Washing machines 7. Televisions 2. Kitchen ware 8. Carpets 3. Cookers 9. Furniture DIVERSIFIED TOURIST 4. Fridges and freezers 10. Linen and Curtains 5. Air Conditioning Systems 11. Gymnasium Equipment DESTINATION 6. Cutlery The items must be engraved, printed or marked with the logo of the tourist hospitality establishment importing for its use. Four-wheel drive vehicles for tour operators are duty exempt (special purpose vehicles). 2. Guarantees to investors: - Kenya provides the following guarantees to local and foreign investors: GUARANTEE REPATRIATION OF CAPITAL AND OTHER GUARANTEES AGAINST PROFITS Kenya is a member of the EXPROPRIATION Capital repatriation, remittance of The Constitution of dividends and interest are Multilateral Investment 1Kenya provides 2 guaranteed to foreign investors 3 Guarantee Agency (MIGA), guarantee against under the Foreign Investment which issues guarantees expropriation of Protection Act (FIPA) - Cap 518. against non-commercial private property, Investors can repatriate: risk to enterprises that Types of which may occur for ¥ After tax proÞts, including invest in member Tourism and reasons of security retained proÞts which have countries. Kenya is also a Drivers or public interest. In not been capitalized; member of the such a case, a fair ¥ The proceeds of the International Centre for • Natural Environment and prompt investment after payment of Settlement of Investment compensation is the relevant taxes; Disputes (ICSID), and of the • National Parks guaranteed. ¥ Principal and interest Africa Trade Insurance • Lakes and rivers associated with any loan. Agency (ATIA). • Coastal/Beach destinations • Striking landscapes NON-FISCAL INCENTIVES • Cultural/Heritage Attractions ¥ Issuing investment certiÞcates • Ancient rock art ¥ Assisting investors in obtaining licenses, permits, incentives and exemptions ¥ Advising the government on improving the investment environment • Fossils and ancient geology ¥ Following up with investors at regular intervals to assist in smooth project implementation and address any concerns • Historic settlements ¥ Providing information on investment opportunities and sources of capital • World War I attractions 8 9 INVESTMENT OPPORTUNITIES WITHIN THE COUNTIES 10 11 No COUNTIES PROJECT PRODUCT OWNER 13 MERU Rainbow Roadside Centre Accommodation Private 1 NAIROBI Nairobi International Convention & MICE National Government 14 KAJIADO Five Star Hotel & Conference Centre Accommodation/MICE County Exhibition Centre Green Woods Entertainment Centre Accommodation/Recreation Private Nairobi City Duck Tours Recreation Private Saikeri Estate Accommodation Private Nairobi Eye Recreation Private Flower Fountain Garden Recreation Private 2 KWALE MajiMoto Eco lodge& Wellness Centre Accommodation County 15 KERICHO Hot Air Balloon Tea Farm Tours Adventure County Mwaluganje Eco-Tented camp Accommodation Community 16 KISUMU Cruise Ship Recreation County 3 KITUI Kalundu Eco park Recreation County Paga Beach Amusement & Heritage Park Recreation County Ikoo Valley Zipline Tour Adventure County Nyakagera Island Golf Resort Accommodation/Sport Private Kanyonyo Wildlife Conservancy Accommodation County 4 MAKUENI Makongo view point Adventure County 17 SIAYA GOT Ramogi Hotel & Conference Centre MICE County Nzaui Forest Camp Accommodation County 18 NYERI Mount Kenya Luxury Hotel Accommodation Private 5 MACHAKOS Iveti Forest Cabins Accommodation County Mweiga Mountain Lodge & Lesatima Accommodation Private Holiday Homes 6 TAITA TAVETA Ndovu Game Lodge and Resort Accommodation Private 18 LAIKIPIA Kirimun Eco Lodge Accommodation County Recreational & Amusement park Recreation County Mkogodo Forest Tented Camp Accommodation Community 5 Star hotel & Conference Centre MICE County Nareto Conservancy Accommodation Private Chawia Forest Eco lodge Accommodation Community Ilngwesi Conservancy Accommodation Community Kasigau Community Based Eco-Tourism Accommodation Community Project Wakumpe Conservancy Accommodation Private 7 MOMBASA Tudor creek Mixed- use Private 19 EMBU Thagana Cabins Accommodation County 8 BARINGO Kerio Valley Cable Car Adventure County Embu University Hotel Accommodation Private Lake Baringo Eco-Park Recreation County 20 ISIOLO Shaba game reserve Accommodation County 9 UASIN GISHU River Sosiani Nature and Amusement Recreation County Samburu National Reserve Accommodation County park Chagaiya Training Camp Sports County 21 VIHIGA Vihiga Cable Car Adventure County Eldoret Convention Centre MICE County Recreation & Amusement Park Recreation County 10 ELGEYO MARAKWET Rimoi National Reserve Eco-Lodge Accommodation County 22 MURANGA Ndakaini Dam Resort Accommodation Private Kerio Valley Cable Car Project Adventure County 23 NAKURU Menengai Forest Zipline Tour Adventure County 11 TURKANA Lobokat and Kainuk Eco-Lodge Accommodation County Lolaser Hotel & Spa Accommodation Private 12 KIAMBU Fourteen Falls Convection Centre MICE County 24 NANDI Chepkiit Falls Accommodation County Green Hub Off-Grid