Kenya Film Incentive Overview
The Kenya Film Incentive supports international productions by offering VAT exemptions, import duty waivers, and film-friendly policies. Though the Kenya Film Incentive is not a formal rebate system yet, it is backed by the Kenya Film Commission and encourages productions that partner with local companies. Key benefits of the Kenya Film Incentive include streamlined permitting, reduced bureaucratic barriers, and access to government support. Productions that showcase local culture and involve Kenyan crews are prioritized under the Kenya Film Incentive. As Kenya continues to invest in its film industry, the Kenya Film Incentive is becoming a stronger draw for global filmmakers.
Hoodlum Introduction
Hoodlum Film Fixers makes navigating the Kenya Film Incentive process seamless and efficient. Our local expertise ensures that your production fully qualifies for the Kenya Film Incentive benefits, from tax exemptions to customs assistance. We guide you through each stage of the Kenya Film Incentive application, including government coordination and local vendor management. With our support, you can meet all requirements of the Kenya Film Incentive and avoid costly delays. Let Hoodlum streamline your experience with the Kenya Film Incentive and help your production thrive in East Africa.
Incentives Offered
The Kenya Film Rebate offers several incentives to boost the film industry in Kenya. Here are some of the key incentives:
Rebate Options for Foreign Film Companies:
- 33% rebate: Requires 90% of production to happen in Kenya, with a strict number of Kenyan employees, a Kenyan co-producer, and a minimum number of local crew members.
- 10% rebate: Requires meeting local expenditure thresholds, hiring below-the-line interns, and selling tax credits to a Kenyan company.
Tax Rebate for Local Productions:
- 20% tax rebate: For fully Kenyan-owned productions that spend KES 1 million or more in Kenya from pre-production to post-production.
Tax Credits for Investors:
- Tax credits: For individuals or companies that invest KES 5 million or more in a film or TV show produced and released in Kenya.
Investment Allowance:
- 25% per year on reducing balance: For filming equipment used by local film producers licensed by the Cabinet Secretary responsible for filming.
National Film Fund:
- A proposed fund to provide financial and tax credits, rebates, and other incentives for the film industry, promoting public-private partnerships.
These incentives aim to attract foreign film productions, support local filmmakers, and stimulate investment in the industry.
Eligibility Criteria
To be eligible for the Kenya Film Rebate, applicants must meet specific requirements. Here are the eligibility criteria:
For Foreign Film Productions (33% rebate):
- At least 90% of principal photography must take place in Kenya.
- A Kenyan co-producer must be part of the production team.
- A minimum number of Kenyan crew members must be employed.
For Foreign Film Productions (10% rebate):
- Meet local expenditure thresholds.
- Hire below-the-line interns.
- Sell tax credits to a Kenyan company.
For Local Film Productions (20% tax rebate):
- The production company must be fully Kenyan-owned.
- The production must spend KES 1 million or more in Kenya from pre-production to post-production.
Additional Requirements:
- Compliance with Kenyan laws and regulations.
- Adherence to industry standards and best practices.
- These criteria ensure that productions contribute to the local economy, promote Kenyan talent, and adhere to industry standards.
What is the minimum QPE per project
The minimum Qualified Production Expenditure (QPE) per project in the Kenya Film Rebate isn’t explicitly stated. However, here’s what we do know about the Kenya Film Rebate:
Rebate Options for Foreign Film Companies:
- 33% rebate: Requires 90% of production to happen in Kenya, with a strict number of Kenyan employees, a Kenyan co-producer, and a minimum number of local crew members.
- 10% rebate: Requires meeting local expenditure thresholds, hiring below-the-line interns, and selling tax credits to a Kenyan company.
Tax Rebate for Local Productions:
- 20% tax rebate: For fully Kenyan-owned productions that spend KES 1 million or more in Kenya from pre-production to post-production.
Production categories accepted:
The Kenya Film Rebate Scheme accepts various categories of productions for evaluation. These include:
- Feature Films
- Television Series
- Documentaries
- Animation
- Post-production projects
- High-end commercials
Qualifying Production Expenditures (QPE)
Qualifying Production Expenditures (QPE) for the Kenya Film Rebate include various costs incurred during pre-production, production, and post-production. Here are some examples of QPE:
Pre-Production Expenditures
- Storyboarding
- Scriptwriting
- Location scouting
- Casting
- Budgeting and scheduling
Production Expenditures:
- Equipment rental (e.g., cameras, lighting, sound)
- Crew costs (e.g., salaries, accommodation)
- Talent fees (e.g., actors, extras)
- Location fees
- Set construction and design
Post-Production Expenditures:
- Editing
- Visual effects
- Sound design and mixing
- Music composition and licensing
- Color grading
Production Expenditures
Production Expenditures under the Kenya Film Rebate include:
Cast and Crew Salaries and Fees:
- Actor fees
- Director fees
- Producer fees
- Crew member salaries (e.g., camera, lighting, sound)
Professional Fees:
- Director’s fees
- Producer’s fees
- Screenwriter’s fees
- Editor’s fees
- Other industry professionals’ fees
These costs are considered Qualifying Production Expenditures (QPE) and are eligible for the rebate, provided they are incurred in Kenya.
Labour Costs:
Labour costs that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Salaries and wages of cast and crew members
- Fees for industry professionals (e.g., directors, producers, editors)
- Benefits and allowances paid to employees
These labour costs must be incurred in Kenya to be eligible for the rebate.
Equipment rental fees:
Equipment rental fees that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Camera equipment rental
- Lighting equipment rental
- Sound equipment rental
- Grip equipment rental
- Other specialized equipment rental (e.g., drones, stabilizers)
These equipment rental fees must be incurred in Kenya to be eligible for the rebate.
Location fees:
Location fees that are considered Qualifying Production Expenditures (QPE) under the Kenya Rumwaganyaga Film Policy include:
- Fees paid to private landowners for filming on their property
- Fees paid to government agencies for filming in public spaces or national parks
- Permits and licenses required for filming in specific locations
These location fees must be incurred in Kenya to be eligible for the rebate.
Wardrobe and costume expenses:
Wardrobe and costume expenses that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Costume design and creation
- Costume rental fees
- Purchase of clothing and accessories for cast members
- Alterations and fittings for costumes
These wardrobe and costume expenses must be incurred in Kenya to be eligible for the rebate.
Set design and construction costs:
Set design and construction costs that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Set design fees
- Set construction materials and labor
- Set dressing and props
- Set decoration
These set design and construction costs must be incurred in Kenya to be eligible for the rebate.
Special effects and stunts expenses:
Special effects and stunts expenses that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Visual effects (VFX)
- Special effects (SFX), such as pyrotechnics or CGI
- Stunt coordination and performance
- Stunt equipment rental
These special effects and stunts expenses must be incurred in Kenya to be eligible for the rebate.
Catering ,craft and services costs:
Catering, craft, and services costs that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Catering services for cast and crew
- Craft services, such as food and beverages
- Accommodation and transportation services for cast and crew
These costs must be incurred in Kenya to be eligible for the rebate.
Specialized Services:
Specialized services that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Catering services
- Transportation services
- Accommodation services
- Security services
- Location management services
- Other specialized services required for production
These costs must be incurred in Kenya to be eligible for the rebate.
Accommodation and transportation costs for cast and crew:
Accommodation and transportation costs for cast and crew that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Hotel accommodations
- Transportation services (e.g., car rentals, shuttle services)
- Travel costs (e.g., airfare, fuel)
These costs must be incurred in Kenya to be eligible for the rebate.
Travel:
Travel costs that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Airfare
- Car rentals
- Fuel
- Transportation services (e.g., shuttle services, taxis)
- Travel agency fees
These travel costs must be related to the production and incurred in Kenya to be eligible for the rebate.
Miscellaneous:
Miscellaneous costs that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Office expenses
- Communication costs (e.g., phone, internet)
- Insurance premiums
- Permits and licenses
- Other production-related expenses
These miscellaneous costs must be incurred in Kenya and directly related to the production to be eligible for the rebate.
Post-Production Expenditures
Post-production expenditures that are considered Qualifying Production Expenditures (QPE) under the Kenya Film Rebate include:
- Editing services
- Visual effects (VFX)
- Sound design and mixing
- Color grading
- Music composition and licensing
- Post-production equipment rental
These post-production costs must be incurred in Kenya to be eligible for the rebate.
Non-Qualifying production Expenditures (NQE)
Non-Qualifying Expenditures under the Kenya Film Rebate typically include:
- Expenditures incurred outside of Kenya
- Development costs (e.g., script development, research)
- Financing costs (e.g., interest, bank fees)
- Marketing and distribution costs
- Expenditures not directly related to production
- Expenditures for goods and services not used in Kenya
These costs are not eligible for the rebate.
Application process
The application process for the Kenya Film Rebate typically involves the following steps:
- Eligibility Check: Ensure your production meets the eligibility criteria set by the Kenya Film Commission (KFC).
- Pre-Production Application: Submit an application before production begins, including:
- Project details (script, budget, shooting schedule)
- Production team and cast information
- Location details
- Approval: The KFC reviews and approves the application, verifying eligibility and ensuring compliance.
- Production: Begin production, ensuring adherence to the approved application and rebate guidelines.
- Expenditure Tracking: Keep detailed records of expenditures, as these will be required for the rebate claim.
- Post-Production Application: Submit a claim for the rebate, including:
- Detailed expenditure reports
- Supporting documentation (invoices, receipts)
- Final production materials (e.g., final cut, trailer)
- Audit and Verification: The KFC may conduct an audit to verify expenditures and ensure compliance.
- Rebate Payment: Upon successful verification, the rebate is paid out according to the approved percentage.
Ready to maximize your film incentives?
Partner with Hoodlum Film Fixers to navigate rebate programs, streamline compliance, and connect with trusted local partners. Let us handle the logistics so you can focus on creating. Contact us today to get started.