Written by David Lewis on Apr 27, 2007. Posted in Incentive News

Kenya Film Commission Pushes For New Legislation

The newly formed Kenya Film Commission (KFC) is pushing for legislation to be passed in early 2007, which is designed to encourage productions of all scales to film in Kenya.

Since its inception in early 2006, the KFC, with support from the Kenya Tourism Board, has been an active intermediary between foreign producers and relevant government ministries, negotiating reductions and waivers in licensing and location fees.

Plans are now underway to attract overseas productions with incentives such as free flights through Kenya Airways, hotels, and ground transportation at development. Film Licensing is a simple and relatively cheap procedure. There is an initial cost of $210 for a feature film or $70 for a short film, and thereafter $15 dollars a day.

Work permits are provided to each foreign crew member at $30 dollars per person for three months. There are no limits on the number of foreign crew, and foreign crews are not subject to any local taxation.

Local crews continue to offer competitive prices in a highly de-regulated economy. They are generally subject to only a 5% withholding tax, which the production company deducts at source.

Rebates for VAT – currently at 16% - are available through productions which have been accorded Export Processing Zone (EPZ) status through a local production company. This is in the form of an exemption granted at source, and covers all purchases that attract VAT.

There is a huge commitment from both the Kenya government and the private sector to capitalize on growing international confidence in Kenya’s film industry. It is widely understood the impact that foreign exposure can have on Kenya’s whole economy and, with sufficient lead time, significant rebates and financial incentives can be explored fully, and budgets kept internationally competitive.

Cynthia Kahumbura, International Marketer, Kenya Film Commission
T: 254 20 6752947
E: cynthia@filmingkenya.com
W: www.filmingkenya.com

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