What is in store for companies under coveted flagship status
AN ARTIST'S IMPRESSION OF A SECTION OF THE PROPOSED KONZA TECHNOPOLIS. FILE PHOTO | NMG
What you need to know:
- Among them are lower taxes and easy as well as faster licensing processes, special work permits for specialised experts and the sentimental value notwithstanding.
- The special economic zones provides customs and excise duty exemptions, VAT benefits, profit and capital repatriation at reduced rates, as well as enhanced intellectual property rights among other benefits.
- The flagship status is given to projects with the most innovative ideas and, which are in tandem with goals of the Vision 2030 which are improving quality of life and have the potential to drive Kenya into a middle income and industrialising nation.
- Among those that have attained this status are Konza, Tatu City, Lapsset, Base Titanium Kwale mining project.
Companies are going all out to attain Vision 2030 flagship status with an eye on the benefits that come with such a tag.
Among them are lower taxes and easy as well as faster licensing processes, special work permits for specialised experts and the sentimental value notwithstanding.
The special economic zones provides customs and excise duty exemptions, VAT benefits, profit and capital repatriation at reduced rates, as well as enhanced intellectual property rights among other benefits.
The flagship status is given to projects with the most innovative ideas and, which are in tandem with goals of the Vision 2030 which are improving quality of life and have the potential to drive Kenya into a middle income and industrialising nation.
Among those that have attained this status are Konza, Tatu City, Lapsset, Base Titanium Kwale mining project. Base was awarded the status in recognition of creating employment – 640 direct jobs, 1,430 indirect jobs (supply chain), 1,360 induced jobs.
Other flagships are the Kenya National Electronic Single Window System, digital migration, the Digital Literacy Programme (School Laptop Project) and the one-stop-shop Service centres (popularly known as Huduma Centres).
Of importance is their potential impact on socio-economic and their alignment to the visions aspirations.
The National Treasury Cabinet Secretary Henry Rotich, delivering the 2016/2017 budget speech, said the government’s focus is on reviving agriculture, industrial and service sectors through increased allocations and removal of taxes perceived as barriers to growth.
Kenya’s economy has grown at an average rate of four per cent in eight years against a planned 10 per cent, thanks to the poor performance of key economic sectors such as agriculture, manufacturing and tourism.
The latest company, which has set its eyes on the flagship status is the Sh85 billion Longonot Gate, a premier development resort city in Naivasha.
The project is set to earn a sentimental Vision 2030 project tag in the next week as recognition by the government of its role in economic growth.
Speaking to Smart Company, Longonot Estate Development Chairman Lee Karuri said firms that are planning to establish their operations at the 2,400 acre land will enjoy easy licensing process.
“The support by the government will apply to both local and foreign investors equally,’ said Mr Karuri.
The holiday resort, conference and leisure city whose construction started in 2012 is situated off Moi South Lake Road at the foothills of Mount Longonot-a dormant volcano located 70 kilometres from Nairobi on Mai Mahiu Road.
The project includes holiday homes, an 18-hole golf course (whose construction is underway), a helicopter landing area, conference facilities, a police post, leisure facilities, retirement cottages, sporting arenas and theme parks.
Plot owners have the option to build villas, cottages, or bungalows of between two and five bedrooms.
An acre at the development which has so far attracted investors such as GEMS Cambridge International Schools and Africa International University was selling at Sh15 million. As part of its private enterprise mission, the development has been providing cross cutting solutions to challenges identified by Vision 2030 pillars including wealth creation, jobs, social development and housing provision.
“It is this transformation that Longonot is set to create in this country that we applied for accreditation by Vision 2030 Delivery Secretariat.
“Luckily enough, at the end of 2017, we received an interim letter of accreditation from Vision 2030 Delivery Board Secretariat saying we are set for listing as a vision 2030 flagship project in the next three week,” he said.
On its part, Tatu City which was among the first to land this now coveted status is a 5,000-acre, mixed-use development with homes, schools, offices, a shopping district, medical clinics, nature areas, a sport and entertainment complex.
It also has a manufacturing area for more than 150,000 residents and tens of thousands of day visitors. Schools and businesses are already open at Tatu City, and a range of houses are under construction to suit all incomes.
Mr Karuri says that listing the development as a Vision 2030 project will set a great precedent towards positioning Kenya globally as a major investment hub and a key tourism destination in line with Vision 2030.
He noted that once the project is fully complete, it will contribute about Sh18 billion annually to the Gross Domestic Product (GDP) of the annually.
The project, he said will also distinguish itself as an exceptional contemporary real estate investment employing about 20,000 locals annually.
“We are very happy that the Kenyan government has now recognised Longonot Gate Development as a vision 2030 project. We are going to provide investment opportunities in sectors such as housing, education, hospitality, health, retail and manufacturing.”
Longonot gate development whose construction started in 2012 is running concurrently with another Sh120 billion Aberdare Hill project in Naivasha.
