Proposed Kenya Film Incentive Package

The proposed film incentive proposal has five pillars namely: Local Industry & Content Development; Large Film& Television Film Incentive; Film Infrastructure Development; film Development Fund; and increased funding for the Kenya Film Commission. The package seeks for an all inclusive intervention that will propel the film industry to be one of Kenya’s key economic sectors generating jobs, government, revenue and content for Kenya in both the short and long run…

Large Film & Television Film Incentive
This proposal seeks for an introduction of a competitive Incentive scheme for Film and TV production. In essence, this scheme is a PRODUCTION REBATE, whereby an eligible applicant will qualify for a 25% rebate and a further 10% for production that incorporates local trainee programmes for both Above & Below-the-Line personnel. This incentive applies for the qualifying local spend. The applicant will also be able to include as part of the qualifying spend, the cost of crew members brought in from abroad if a local person is trained in that position. Eligible projects must have a budget of at least US$500,000 and have at least 50% of principle shooting undertaken in Kenya. The maximum rebate for any project is US$2 million. The initial funding provision for this facility will be US$10 million. The rebate is tax exempt for the purposes of income tax.

To further assist a range of policy initiatives in the present and near future, it is recommended that consideration be given to the establishment of Producers Equity Investment Fund to allow for further equity participation by qualified production entities. This component will be managed through the Industrial & Commercial Development Corporation (ICDC).

ICDC is a self-financing national development finance institution that provides financing to entrepreneurs
engaged in competitive industries. ICDC follows normal company policy and procedures in its operations, pays income tax at corporate rates and reports on a fully consolidated basis, with its Annual Report freely available to the public.

In general, ICDC finance will be available for projects within Kenya. The ICDC does not seek shareholding
control or management participation but sees its role as a provider of financial assistance.

Financial participation is usually by way of loan finance. The financing instruments are:
• Equity
• Quasi-equity
• Commercial Loans
• Wholesale finance
• Share Warehousing
• Export/Import finance
• Short-term trade finance
• Guarantees

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http://www.kenyafilmcommission.com/public_site/webroot/cache/article/file/Proposed_Kenya_Film_Incentive_Package1.pdf