Tatu City and China-Economic Trade Chamber of Commerce (CAETC), have signed a collaboration agreement backed by the Changsha County Government aimed at stimulating bilateral investment between Kenya and China.
The collaboration between Tatu City and CAETC is a step toward forging more mutual relationships between Kenya and China considering the role played by CAETC is a non-profit social organization comprising Changsha-based enterprises.
Through this collaboration, CAETC will continue furthering its crucial role in fostering trade and cooperation between China and Africa. According to Solomon Mahinda, Executive Vice President of Tatu City, this will promote investments and market access in Africa through favorable trade policies in actualizing the conversation in business ties.
“This collaboration with CAETC is a step towards enduring friendships between our countries and establishing Kenya and the greater East Africa region as the landing ports for continental investments,” he said.
Johanna Chen, Executive President of the Changsha Chamber of Commerce, lauded the partnership as a significant milestone in strengthening ties between China and Kenya.
“We are excited about the potential to drive economic growth through Tatu City SEZ,” she said.
Tatu City, the 5,000-acre mixed-use Special Economic Zone (SEZ), is already home to several Chinese companies, including Sinotruk’s assembly, Tianglong, a gas cylinder manufacturer, Stecol Corporation, a global construction and engineering company, and footwear manufacturer Peonystar.
The SEZ hosts over 75 companies, either operational or under development, representing over Sh300 billion (USD 2 billion) in investments in Kenya.
These companies, employing more than 9,000 people, include Dormans, Copia, Cooper K-Brands, Grit Real Estate Income Group, Twiga Foods, Freight Forwarders Solutions, Friendship Group, Davis & Shirtliff, Kenya Wine Agencies Limited, and Roast by Carnivore.
Businesses operating in Tatu City SEZ enjoy benefits such as VAT zero-rating, import and stamp duty exemptions, and a reduced corporate tax rate of 10 percent for the first 10 years and 15 percent for the subsequent 10 years.