ADVOKS GLOBAL · KENYA
Special Economic Zones Act
27. Application and issue of licence
Edition: 2026-05-15 · In force
27. Application and issue of licence
(1)A person who, intends to carry on business as a special economic zone developer, operator or enterprise, shall apply in the prescribed form to the Authority for an appropriate licence or for a renewal of the licence.(2)On receiving an application for licence or for a renewal of a licence, the Authority, may on the recommendation of the Commissioner of Customs and upon payment of the prescribed fee, issue to the applicant the appropriate licence or renew the licence.(3)In evaluating applications for special economic zone developer, operator and enterprise licences, the Authority shall assess the specific engineering and financial plans, financial viability, and environmental and social impact of the applicant's proposed special economic zone project, as appropriate.(4)The Authority shall expeditiously render its decisions on licensing under this Act within one month from the date on which the duly completed application form is submitted together with relevant supporting documents.(5)A licence issued under this section shall—(a)be in the prescribed form;(b)authorize the licensee to carry on business as a special economic zone developer, operator or enterprise;(c)be specific with regard to the activity to be carried out under the licence;(d)be valid for such period as the Authority may prescribe;(e)contain such other conditions as the Authority deems necessary.(5A)A licence issued under this Act to a special economic zone developer, operator or enterprise carrying on business or undertaking activities within an industrial park shall be valid for a minimum period of ten years.(5B)A licence issued under subsection (5A) shall be subject to the licensee meeting the minimum investment value of Kenya Shillings five billion.(5C)The Cabinet Secretary may by notice in the Gazette amend the minimum investment value set out under subsection (5B).(5D)The Authority shall, on an annual basis, and for the entire period during which a licence remains valid, conduct a compliance audit of a special economic zone developer, operator or enterprise to whom a licence is issued pursuant to subsection (5A) to ensure compliance with such terms and conditions of licence as prescribed in regulations, and the developer, operator or enterprise shall pay such annual licence fees to the Authority as may be prescribed.(5E)A special economic zone developer, operator or enterprise that fails to pay the prescribed annual licence fees within sixty days after the expiry of each twelve-month period following the date of issuance of the licence shall be liable to pay a penalty may be prescribed in the regulations.(6)A licence issued under this section may—(a)be amended at any time on written notice to the holder by the authority, if in its opinion the amendment is necessary; or(b)be suspended or revoked by the Authority if the holder fails to comply with the conditions contained in the licence laid down in this Act or in any regulations made thereunder and where a licence is suspended or revoked, the holder shall take such steps as may be recommended by the Authority.(6A)Before suspending or revoking a licence under subsection (6), the Authority shall give written notice of at least thirty days, specifying the—(a)grounds for the intended suspension or revocation;(b)terms and conditions of the licence or the provisions of law that have been contravened, not complied with or violated;(c)remedial action required;(d)period within which the licensee is required to comply or show cause why the licence should not be suspended or revoked.(6B)Where a licence is revoked, the Authority shall, in consultation with the Cabinet Secretary, make such arrangements as may be necessary to provide for the protection of third-party interests and the orderly exit, transfer or disposal of assets within the special economic zone.(6C)A special economic zone developer, operator or enterprise aggrieved by a decision of the Authority to suspend or revoke a licence may appeal the decision to the Cabinet Secretary within thirty days of receipt of the notification of suspension or revocation.(7)The Cabinet Secretary shall—(a)publish in the Kenya Gazette all approved applications to establish a special economic zone; and(b)within one hundred and eighty days of the coming into force of this Act, publish regulations on the application, issuance, suspension, revocation and appeal process on licensing of special economic zones.