Tax incentives for the textile industry of Kenya

Kenya has started offering tax incentives to clothing companies, a key part of it’s under performing manufacturing sector, to create jobs and provide affordable new clothes for the domestic shoppers.

The textiles industry is now allowed to sell 20% of their annual production locally without sales taxes and without paying import duties on the materials and equipment used to produce the textiles and garments.

The advent of cheap, second-hand clothes imports from the US and Europe, locally known as mitumba, in the 1980s, put local apparel firms out of business and reduced production of raw materials like cotton.

 

 

 
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