New Bill proposes 7 major changes to Kenya’s Special Economic Zones

A new Bill before Kenya's National Assembly aims to overhaul the country's Special Economic Zones and Export Processing Zones. The Kenya Economic Zones Bill, 2026, published on July 2, 2026, seeks to replace the current framework with a broader system encompassing SEZs, EPZs, and businesses within them. The proposed law introduces the Kenya Economic Zones Authority to oversee the zones, governed by a board with specified qualifications and responsibilities.

The Bill also establishes formal processes for declaring and designating SEZs and EPZs, with distinct criteria and categories for each. It defines permitted and prohibited activities within these zones to create clearer boundaries for businesses. The legislation changes how goods and services moving through SEZs and EPZs are treated for regulatory purposes, including provisions for goods considered exported or imported.

A structured licensing framework for businesses operating in economic zones is also introduced, along with a Kenya Economic Zones Service Permit. The Bill establishes a comprehensive infrastructure and operations framework within the zones, with provisions for facilities, receipt, and payment of enterprises. The proposed authority would have a chief executive officer, staff, and a corporate secretary, with specified qualifications and responsibilities.

This single legal framework for Kenya's economic zones must undergo consideration and debate in the National Assembly before becoming law.