Kenya mulls tax incentives to boost film sector

6 April 2018

Investment

NAIROBI, March 28 (Xinhua) -- Kenya plans to introduce tax incentives in order to boost the film sector, the country's film marketing agency said on Wednesday.

Chris Foot, Chairman of Kenya Film Commission (KFC), told Xinhua in Nairobi that the industry stakeholders have already drafted regulations on tax rebates have already been developed.

"We hope by the end of September, Kenya will be able to offer 35 percent tax refunds on cost of production of films made domestically by both local and foreign film makers," Foot said during the Kalasha International TV and Film Market.

The three-day event brought together players in the film industry from East Africa to review latest technology in the film sector.

Foot said the tax incentives together with other measures should help to lure film makers to choose Kenya as their location.

Foot noted that the National Treasury has already approved duty remission on film equipment brought into the country.

"However, Kenya Revenue Authority has not developed regulations to exempt imported film equipment from paying taxes," he added.

Latest statistics from the government indicate that the film sector comprising of audio visual sector contributes about two percent of the Gross Domestic Product (GDP).

Foot said that once the tax incentives are operational, Kenya will be able to compete with other African countries for international films to be produced in Kenya.

KFC also plans to begin location mapping for films so as to assist film makers choose the best locations for their film.

He added that an online directory of all players in the film sector will soon be launched in order to give more visibility to the film sector.

Source: Xinhaunet