Kenya: Centum bets big on Special Economic Zone

Diversified financial services firm Centum Investments is making waves in Kenya with its latest venture into the Special Economic Zone (SEZ) sector. The company recently acquired a license at Its Two Rivers International Financial and Innovation Centre to operate a Special Economic Zone, becoming the first private business entity in the country to do so. This move is projected to attract a significant influx of investors and boost economic growth in the region. CNBC Africa had the opportunity to speak with Fred Murimi, Managing Partner of Centum Capital Partners LTD, to discuss the company's future prospects and the impact of the SEZ on Kenya's business landscape. Murimi highlighted the potential of the East Africa community, emphasizing the need to remove barriers and tariffs to facilitate seamless trade across borders. With a population of over 100 million when considering the entire East African community and recent entry of the DRC, Murimi sees vast opportunities for investment and collaboration within the region. By tapping into larger markets and making it easier to do business across countries, Centum aims to drive growth and expand its presence in Africa. The establishment of the Special Economic Zone at Two Rivers presents a game-changing opportunity for businesses looking to operate in a tax-efficient environment. With incentives such as reduced corporation tax, 0% stamp duty, capital gains tax, and VAT, companies can benefit from significant cost reductions and create a conducive environment for growth and expansion. The SEZ framework provides a favorable platform for multinational corporations, professional service firms, and tech companies to thrive and contribute to Kenya's economic development. Centum's private equity portfolio has also seen significant growth, with many companies weathering the challenges of the COVID-19 pandemic and returning to profitability. The company's strategic investments across various sectors have yielded positive results, reinforcing its position as a key player in Kenya's financial services industry. Centum remains optimistic about the future and is poised for continued growth and success in the dynamic African market. In conclusion, the introduction of the SEZ at Two Rivers marks a significant milestone for Centum Investments and Kenya's business landscape. With a focus on driving investment, creating employment opportunities, and fostering innovation, Centum is set to lead the way in unlocking the country's economic potential. The SEZ framework provides a solid foundation for businesses to thrive and contribute to the growth of the local economy, signaling a promising future for Kenya's business sector.