6.3 Promoting Tourism and Film Industry for Employment Creation
102. First, Mr. Speaker, as Hon Members are already aware, our tourism sector was adversely
affected by last year’s post election violence. This was compounded later in the year by the ongoing
global economic recession. In order to revive and promote growth of this important sector, I
propose to grant an exemption of import duty on all four wheel drive motor vehicles specially
designed and built for tourist purposes.
103. Second, Mr. Speaker, our film industry has lagged behind other destinations such as
South Africa, Egypt, and Nigeria. To encourage growth of this industry that has the potential to
create employment to our youth, generate income and promote entertainment industry, I propose
to remove the current import duty of 25 percent and VAT of 16 percent on television cameras,
digital cameras and video camera recorders.
104. Third, Mr. Speaker, Kenyans are leisure-loving people who enjoy watching Television
Programs, but unfortunately the many programmes available to them are foreign programmes
and movies. Many film makers find Kenya expensive yet an attractive destination for shooting
and making movies. To promote the film industry in Kenya and also attract foreign film makers
so as to profile Kenya as a film making destination of choice, I propose to zero rate for VAT
taxable goods and services offered to film producers.
105. Fourth, Mr. Speaker, the Government fully recognizes the pool of talents we have in our
country and the need to provide appropriate incentives to this upcoming industry to create
employment opportunities for the youth. In this regard, Mr. Speaker, I also propose to grant a
one hundred (100%) per cent investment deduction on capital expenditure incurred by a film
producer on purchase of any filming equipment.

I don’t know exactly what all this means, but it’s clear I can import any kind of video or still camera for zero duty/VAT. What I’m unclear about is other production equipment. Editing/lighting/sound, etc.