Point in Time
Act No: CAP. 517
Act Title: EXPORT PROCESSING ZONES
[ Date of commencement: 23rd November, 1990. ]
[ Date of assent: 21st November, 1990. ]
Arrangement of Sections
PART I – PRELIMINARY
1.
Short title

This Act may be cited as the Export Processing Zones Act, 1990.

PART II – THE EXPORT PROCESSING ZONES AUTHORITY
4.
Meetings and procedures of the Authority
(1)

The chairman of the Authority shall convene meetings at least once each month and whenever he receives a written request signed by at least two members; and in the absence of the chairman, meetings shall be convened by the chief executive of the Authority and the members present shall elect one of the members to preside as chairman.

(2)

The quorum for any meeting of the Authority shall be half of its members and the Authority may, subject to the requirement for the quorum, regulate the procedure in regard to meetings of the Authority and the transaction of business at such meetings.

(3)

If the chairman of the Authority, by reason of extended illness or absence is temporarily unable to perform the duties of his office, the President shall appoint another member of the Authority to act in his place during the period of absence.

(4)

The chairman may at any time resign by a letter addressed to the President and the resignation shall take effect upon being accepted by the President.

(5)

Any member who has a direct or indirect interest in any decision that is to be taken on any matter by the Authority, shall disclose the nature of such interest at the meeting of the Authority where such decision is being taken and the disclosure shall be recorded in the minutes of the meeting, and if either the member or a majority of the members of the Authority believe that such member’s interest in the matter is such as to influence his judgment, he shall not participate in the deliberation or the decision of the Authority on such matter.

5.
Seal and execution of documents
(1)

The common seal of the Authority shall be kept in the custody of the Authority and shall not be affixed to any instrument or document except as authorized by the Authority.

(2)

All documents, other than those required by law to be under seal, made by, and all decisions of, the Authority may be signified under the hand of the chairman, or, in the case of a decision taken at a meeting at which the chairman is not present, under the hand of the person presiding at such meeting.

6.
Appointment of chief executive of the Authority
(1)

The Minister may, on recommendation of the Authority, appoint a chief executive of the Authority whose conditions and terms of employment including remuneration shall be determined by the Minister.

(2)

The chief executive shall, subject to the general direction and control of the Authority, be charged with the direction of the affairs and transactions of the Authority, the exercise, discharge and performance of its objectives, functions and duties, and the administration and control of the servants of the Authority.

(3)

The Minister may, on recommendation of the Authority, remove from office the chief executive appointed under subsection (1).

7.
Appointment and remuneration of staff
(1)

The Authority may appoint such other officers and servants as it considers necessary for the efficient discharge of its responsibilities and functions.

(2)

The officers and servants appointed under subsection (1) shall be remunerated in such manner and at such rates, and shall be subject to such conditions of service, as may be determined by the Authority.

(3)

Subject to this Act, every officer or servant appointed under subsection (1) shall exercise such powers and functions and perform the duties assigned to him from time to time by the chief executive.

8.
Protection from legal action
(1)

Neither the Authority, any of its members, officers nor servants shall be personally liable for an act which is done or purported to be done in good faith by such person, on the direction of the Authority or in the performance or intended performance of any duty or in the exercise of any power under this Act or the regulations made thereunder.

(2)

Any expenses incurred by any person referred to in subsection (1) in any suit or prosecution brought against him before any court in respect of any act which is done or purported to be done by him under this Act or on the direction of the Authority shall, if the Court holds that such act was done in good faith, be paid out of the general fund of the Authority, unless such expenses are recovered by him in such suit or prosecution.

11.
General fund and annual budget of the Authority
(1)

The Authority shall have its own general fund.

(2)

There shall be paid into the general fund—

(a)

all such sums of money as may be paid as fees under this Act; and

(b)

all such sums of money as may be received by the Authority for its operations from any other source.

(3)

There shall be paid out of the Fund all such sums of money required to defray the expenditure incurred by the Authority in the exercise, discharge and performance of its objectives, functions and duties under this Act.

(4)

The annual budget of the Authority shall be subject to approval by the Treasury and any funds generated in the general fund in excess of the amounts deemed appropriate by the Minister shall be paid into the Consolidated Fund.

12.
Accounts, etc., of the Authority
(1)

The Authority shall cause proper books of accounts to be kept of its income and expenditure, assets and liabilities and all other transactions of the Authority.

(2)

The Authority or any person officially authorized in that behalf by the Authority may, by notice in writing, require any licensee to furnish to the Authority or to an authorized person, within such period as is specified in the notice, not being less than thirty days, all such returns or information as specified in such notice:

Provided that nothing in this section shall compel a licensee to disclose his patented commercial secrets.

13.
Disclosure of information
(1)

The Authority or any officer or servant of the Authority shall not disclose to any person or use any return or information acquired under section 12(2) except for the purpose of achieving the objectives of the Authority unless required to do so by a court of law.

(2)

Any officer or servant of the Authority who contravenes this section shall be guilty of an offence and liable to a fine not exceeding two hundred thousand shillings or imprisonment for a term not exceeding three years or to both.

14.
Committees

The Authority may appoint committees, whether of its own members or otherwise, to carry out such general or specific functions as may be specified by the Authority, and may delegate to any such committee such of its powers as the Authority may deem appropriate.

PART III – EXPORT PROCESSING ZONES
16.
Facilities, etc., within an export processing zone
(1)

The Authority may require the export processing zone developer to provide and maintain in an export processing zone such facilities, including adequate enclosure to separate an export processing zone from the customs territory, as it may consider necessary for the proper and efficient functioning of the zone.

(2)

Subject to this Act, no person shall reside within an export processing zone without the prior permission of the Authority.

(3)

The Authority may at its discretion order the exclusion or removal from an export processing zone of any goods or discontinuance of any activity or operations which in its opinion, are dangerous or prejudicial to public interest, health or safety:

Provided that the Authority shall not issue an order under this section without first giving such a person an opportunity of being heard.

(4)

Any person who contravenes this section shall be guilty of an offence and liable to a fine not exceeding two hundred thousand shillings or to imprisonment for a term not exceeding three years or to both.

18.
Power of Minister to make rules

The Minister may, in consultation with the Authority, make rules for the proper establishment and administration of the export processing zones.

PART IV – LICENSING PROVISIONS
20.
Register of licences
(1)

The Authority shall keep in such form as it deems appropriate a register of the holders of current licences issued under this Act specifying in relation to each holder of a licence—

(a)

his name;

(b)

the address of the principal place at which he carries on business; and

(c)

the name or style under which the business is carried on if different from the name of the holder of the licence.

(2)

Where—

(a)

the holder of the licence ceases to carry on the business to which the licence relates; or

(b)

a change occurs in any particulars which are required to be entered in the register of licence of licence holders with respect to the holder of a licence,

the holder of the licence shall within fourteen days of the occurrence of the event concerned give to the Authority particulars of such change in the prescribed form.

PART V – EXPORT PROCESSING ZONE DEVELOPERS AND OPERATORS
PART VI – EXPORT PROCESSING ZONE ENTERPRISES
23.
Establishment of export processing zone enterprises
(1)

No export processing zone enterprise shall be established, and the benefits described in Part VIII shall not accrue to any enterprise, unless the export processing zone enterprise holds a valid licence issued by the Authority.

(2)

The licence shall be granted by the Authority if the application is found to meet the objectives of this Act and if the proposed business enterprise—

(a)

is incorporated in Kenya, whether or not it is one hundred percent foreign owned, for the sole purpose of producing goods or services for export within an export processing zone;

(b)

proposes to engage in any activity or activities eligible to be undertaken by an export processing zone enterprise in the export processing zone;

(c)

shall not have a deleterious impact on the environment, or engage in unlawful activities, impinging on national security or may prove to be a health hazard; and

(d)

conducts business in accordance with the laws for the time being in force save for any exemptions that may from time to time be granted.

PART VII – OPERATIONS WITHIN THE EXPORT PROCESSING ZONES
24.
Goods deemed to be exported and imported into Kenya

Unless otherwise provided under this Act or under any other written law—

(a)

goods which are taken out from any part of the customs territory and brought into the export processing zone or services provided from part of the customs territory to an export processing zone shall be deemed to have been exported from Kenya and shall be paid for in convertible currency; and

(b)

goods which are brought out of an export processing zone and taken into any part of the customs territory for use therein or services provided from an export processing zone to any part of the customs territory shall be deemed to be imported into Kenya.

PART VIII – BENEFITS TO EXPORT PROCESSING ZONE ENTERPRISES, ETC.
30.
Inspection facilities

The customs officer in each export processing zone shall offer on-site inspection to the export processing zone for imports into, and exports out of, the export processing zone.

PART IX – MISCELLANEOUS PROVISIONS
31.
Appeal to the Minister
(1)

Any person aggrieved by any direction given by the Authority to such person or by a decision of the Authority—

(a)

refusing to grant a licence;

(b)

imposing limitations or restrictions on a licence;

(c)

cancelling or suspending a licence,

may appeal to the Minister against such direction, refusal, limitations or restrictions, cancellations, suspension or removal, as the case may be, within thirty days from the date on which the decision was communicated to such person.

(2)

The Minister may, if he considers it in the public interest to do so, set aside the Authority’s decision.

32.
Power of Minister to give directions
(1)

The Minister may give to the Authority such directions as he may consider necessary for the proper functioning of an export processing zone or for the purpose of protecting revenue and foreign exchange earnings.

(2)

The Minister may from time to time direct the Authority to furnish in such form as he may require returns, accounts and any other information with respect to the work of the Authority and the Authority shall comply with such direction.

33.
Report to the Minister

The Authority shall within three months after the close of each financial year, submit to the Minister a report of its operations and activities throughout the year, together with audited accounts in such form and details as the Minister may from time to time determine.

34.
Regulations

The Minister may make regulations in respect of any matter required by this Act to be prescribed or in respect of which regulations are authorized to be made.

35.
General powers of the Minister
(1)

The Minister may, for health, environmental or public security reasons and by order published in the Gazette, exclude goods or services from the provisions of this Act.

(2)

The Minister may, for health, environmental or public security reasons and by order published in the Gazette, prohibit any goods from being taken into an export processing zone.

FIRST SCHEDULE add image

FIRST SCHEDULE

[Repealed by Act No. 7 of 1993, s. 8.]

SECOND SCHEDULE

[Section 29(1).]

LIMITATION ON IMPORTS

The following goods may not be imported free of import duty and value added tax by an export processing zone enterprise —

1.

Any vehicle not used solely within an export zone and in any case—

Passenger

cars.

Mini

buses.

SECOND SCHEDULE

[Section 29(1).]

LIMITATION ON IMPORTS [Act No. 5 of 1998.]

The following goods may not be imported free of import duty and value added tax by an export processing zone enterprise or export processing zone developer—

1.

Any vehicle not used solely within an export zone and in any case—

Passenger

cars.

Mini

buses.

2.

Fuel (but excluding fuel oil or heavy diesel).

3.

Spare parts for motor vehicles, including tyres.

SECOND SCHEDULE

[Section 29(1).]

LIMITATION ON IMPORTS [Act No. 5 of 1998, Act No. 4 of 1999.]

The following goods may not be imported free of import duty and value added tax by an export processing zone enterprise or export processing zone developer—

1.

Any vehicle not used solely within an export zone and in any case—

Passenger

cars.

Mini

buses.

2.

Fuel (excluding fuel oil which is exclusively and physically expended as raw material for the manufacture of bitumen, in such quantities as the Commissioner may, from time to time, approve).

3.

Spare parts for motor vehicles, including tyres.

SECOND SCHEDULE

[Section 29(1).]

LIMITATION ON IMPORTS [Act No. 5 of 1998, Act No. 4 of 1999, Act No. 9 of 2000.]

The following goods may not be imported free of import duty and value added tax by an export processing zone enterprise or export processing zone developer—

1.

Any vehicle not used solely within an export zone and in any case—

Passenger

cars.

Mini

buses.

2.

Fuel, excluding—

(i) fuel oil which is exclusively and physically expended as raw material for the manufacture of bitumen, in such quantities as the Commissioner may, from time to time, approve;
(ii) fuels for use in generators only, during periods of power rationing, in such quantities and subject to such conditions as the Commissioner may prescribe.
3.

Spare parts for motor vehicles, including tyres.

SECOND SCHEDULE

[Section 29(1).]

LIMITATION ON IMPORTS [Act No. 5 of 1998, Act No. 4 of 1999, Act No. 9 of 2000, Act No. 6 of 2001.]

The following goods may not be imported free of import duty and value added tax by an export processing zone enterprise or export processing zone developer—

1.

Any vehicle not used solely within an export zone and in any case—

Passenger cars.
Mini

buses.

2.

Fuel, excluding—

(i) fuel oil which is exclusively and physically expended as raw material for the manufacture of bitumen, in such quantities as the Commissioner may, from time to time, approve;
(ii) fuel for use in generators and boilers, in such quantities and subject to such conditions as the Commissioner may prescribe.
3.

Spare parts for motor vehicles, including tyres.