WebThis list of investors with investments in Kenya provides data on their investment activities, fund raising history, portfolio companies, and recent news. The National Council on the Administration of Justice spearheaded legislative reforms to accommodate mediation in the formal court process as well as introduce small claims courts to expedite resolution of commercial cases. Office of the Special Envoy for Critical and Emerging Technology, Office of the U.S. While Kenya was a magnet for foreign direct investment in East Africa in the 1960s and 1970s, the country has underperformed significantly in the past couple of WebThe private sector in Kenya 28 Investment climate: Key factors for foreign investors 32 III. Regarding the arbitration of property issues, the Foreign Investments Protection Act (2014) cites Article 75 of the Kenyan Constitution, which provides that [e]very person having an interest or right in or over property which is compulsorily taken possession of or whose interest in or right over any property is compulsorily acquired shall have a right of direct access to the High Court. Kenya in 2020 prevailed in an ICSID international arbitration case against WalAm Energy Inc, a U.S./Canadian geothermal company in a geothermal exploration license revocation dispute. Kenya passed the Data Protection Act (2019) which imposes restrictions on the transfer of data in and out of Kenya without consent of the Data Protection Commissioner and the subject, functionally requiring data localization. EURO. Many GOK laws grant significant discretionary and approval powers to government agency administrators, which can create uncertainty among investors. , Mar 7, 2023. P.O. The Kenya Insurance Act (2010) restricts foreign capital investment to two-thirds, with no single person controlling more than 25 percent of an insurers capital. The law permits workers in collective bargaining disputes to strike but requires the exhaustion of formal conciliation procedures and seven days notice to both the government and the employer. The major intellectual property enforcement issues in Kenya related to counterfeit products are corruption, lack of penalty enforcement, failure to impound imports of counterfeit goods at the ports of entry, and reluctance of brand owners to file a complaint with the Anti-Counterfeit Agency (ACA). Despite attacks against Kenyan forces in Somalia, the GOK has maintained its commitment to promoting peace and stability in Somalia. In 2017 and 2018 Kenya instituted broad reforms to improve its business environment, including passage of the Tax Laws (amended) Bill (2018) and the Finance Act (2018), establishing new procedures and provisions relating to taxes, simplifying registration procedures for small businesses, reducing the cost of construction permits, easing the payment of taxes through the iTax platform, and establishing a single window system to speed movement of goods across borders. In December 2018, the Cabinet Secretary for Interior and Coordination of National Government issued a directive that requires foreign nationals to apply for their work permits while in their country of origin and will have to prove that the skills they have are not available in the Kenya labor market. Year-on-year, Kenya continues to improve its regulatory framework and its attractiveness as a destination for foreign direct investment. Its provisions generally correspond to those of the United Nations Model Law on Cross Border Insolvency. 03 / Select Countries You can add more than one country or area. The act also provides a mechanism to request a review of the governments failure to disclose requested information, along with penalties for failures to disclose. The NSE is a member of the Association of Futures Market and is a partner exchange in the United Nations-led SSE initiative. Outside of such an agreement, a foreign judgment is not enforceable in the Kenyan courts except by filing a suit on the judgment. The iCMS features enable Customs to efficiently manage revenue and security related risks for imports, exports and goods on transit and transshipment. The government domestic debt market, however, is deep and liquid. In July 2020, the Ministry of Lands and Physical planning released draft electronic land registration regulations (2020) to guide the e-transaction of land. The project will significantly speed up the hearing of cases as judges will no longer be required to record proceedings by hand. The private sector-supported Bribery Act (2016) stiffened penalties for corruption in public tendering and requires private firms participating in such tenders to sign a code of ethics and develop measures to prevent bribery. The law provides for equal pay for equal work. WebFDI in Figures. There are no restrictions for foreign investors to seek credit in the domestic financial market although it still struggles to fund big ticket projects. In 2021 alone, China accounted for nearly US$5 billion in foreign direct investment in African countries. After the U.S. government also raised the issue with the Kenyan government, the clause was repealed. Coordinator for the Arctic Region, Deputy Secretary of State for Management and Resources, Office of Small and Disadvantaged Business Utilization, Under Secretary for Arms Control and International Security, Bureau of Arms Control, Verification and Compliance, Bureau of International Security and Nonproliferation, Under Secretary for Civilian Security, Democracy, and Human Rights, Bureau of Conflict and Stabilization Operations, Bureau of Democracy, Human Rights, and Labor, Bureau of International Narcotics and Law Enforcement Affairs, Bureau of Population, Refugees, and Migration, Office of International Religious Freedom, Office of the Special Envoy To Monitor and Combat Antisemitism, Office to Monitor and Combat Trafficking in Persons, Under Secretary for Economic Growth, Energy, and the Environment, Bureau of Oceans and International Environmental and Scientific Affairs, Office of the Science and Technology Adviser, Bureau of the Comptroller and Global Financial Services, Bureau of Information Resource Management, Office of Management Strategy and Solutions, Bureau of International Organization Affairs, Bureau of South and Central Asian Affairs, Under Secretary for Public Diplomacy and Public Affairs, U.S. The Privatization Act 2003 establishes the Privatization Commission (PC) which is mandated to formulate, manage, and implement Kenyas Privatization Program. Companies operating in the SEZs will receive the following benefits: all SEZ supplies of goods and services to companies and developers will be exempted from VAT; the corporate tax rate for enterprises, developers, and operators will be reduced from 30 percent to 10 percent for the first 10 years and 15 percent for the next 10 years; exemption from taxes and duties payable under the Customs and Excise Act (2014), the Income Tax Act (1974), the EAC Customs Management Act (2004), and stamp duty; and exemption from county-level advertisement and license fees. The Kenyan Judiciary reported in its 2018-2019 State of the Judiciary and Administration Report that it had commenced its court recording and transcription project with the installation of recording equipment in six courtrooms in the Commercial and Tax Division in Nairobi. Both local and foreign employers are required to register with National Industrial Training Authority (NITA) within 30 days of operating. The GOK has responded by loosening fiscal policies like corporate income tax and other measures to cushion companies and individuals. Laws and Regulations on Foreign Direct Investment. In 2016, the U.S. International Development Finance Corporation (formerly OPIC) established a regional office in Nairobi, but the office is not currently staffed. Privately-owned land comprised six percent of the total land area in 1990; government land was about 20 percent of the total and included national parks, forest land and alienated and un-alienated land. IMF no longer publishes Kenya data as part of its CDIS. Global AIDS Coordinator and Global Health Diplomacy, Office of the U.S. Special Presidential Coordinator for the Partnership for Global Infrastructure and Investment, Special Presidential Envoy for Hostage Affairs, Special Representative for Syria Engagement, U.S. Security Coordinator for Israel and the Palestinian Authority, Office of the U.S. In 2016, Kenyas judiciary instituted specialized courts focused on corruption and economic crimes. In November 2019, KenInvest launched the Kenya Investment Policy (KIP) and the County Investment Handbook (CIH) (http://www.invest.go.ke/publications/) which aim to increase foreign direct investment in the country. The 2017 National ICT Masterplan envisages the sector contributing at least 10 percent of GDP, up from 4.7 percent in 2015. Instability in Somalia has heightened security concerns and led to increased security measures aimed at businesses and public institutions around the country. Whether you call them private investors, seed investors, informal investors, business angels or angel funders, these are the names used to refer to angel investors in Kenya. 148.3703. Issuance of a work permit now requires an assured income of at least USD 24,000 annually. WebSectors to invest in Kenya include; Energy, Financial Services, information, Communication, Technology, Agriculture, Infrastructure, Manufacturing, Real In 2019, the National Treasury published the Kenya Sovereign Wealth Fund policy (2019) and the Kenya Sovereign Wealth Fund Bill (2019) for stakeholders comments as a constitutional procedure. The Presidential Task Force on Parastatal Reforms (2013) proposed that the three intellectual property agencies, namely: the Kenya Industrial Property Institute (KIPI), the Kenya Copyright Board (KECOBO) and the Anti-Counterfeit Authority (ACA) be merged into one Government Owned Entity (GOE). Investors have access to a large pool of highly qualified professionals in diverse sectors from a working population of over 47.5 percent out of a population of 47.6 million people. More information on permit classes can be found at https://kenya.eregulations.org/menu/61?l=en. Market Overview Discusses key economic indicators and trade statistics, which countries are dominant in the market, and other issues that affect trade. Kenya has 15 money remittance providers as at 2020 following the operationalization of money remittance regulations in April 2013. There have been very few investment disputes involving U.S. and international companies. The purpose of the USF is to fund national projects that have significant impact on the availability and accessibility of ICT services in rural, remote, and poor urban areas. In March 2018, however, President Kenyatta and opposition National Super Alliance (NASA) leader Raila Odinga publicly shook hands and pledged to work together to heal the political, social, and economic divides revealed by the election. Kenya has been no exception. 138.3324. Secretary Blinken is on travel to Sweden, Norway, and Finland from May 29-June 2, 2023. Should I file my tax returns if my income is earned from outside Kenya? The Insolvency Act (2015) increased the rights of borrowers and prioritizes the revival of distressed firms. The government policy of Kenya on foreign investment and the role of Kenya Investment Authority have been instrumental in attracting and facilitating foreign investments. The GOK has trade facilitation agreements (TFA) through the WTO, EAC Customs Union Protocol, Common Market for Eastern and Southern Africa (COMESA) Protocol on FTA, the U.S.-EAC Cooperation Agreement on Trade Facilitation, Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade, and the EU-EAC economic partnership agreement. Kenya has strong telecommunications infrastructure, a robust financial sector, a developed logistics hub, and extensive aviation connections throughout Africa, Europe, and Asia. The law states that a debtor will automatically be discharged from debt after three years. China is an important economic player in Africa. The Movable Property Security Rights Bill (2017) enhanced the ability of individuals to secure financing through movable assets, including using intellectual property rights as collateral. In 2013, the GOK initiated the Access to Government Procurement Opportunities program, requiring all public procurement entities to set aside a minimum of 30 percent of their annual procurement spending facilitate the participation of youth, women, and persons with disabilities (https://agpo.go.ke/). In the private sector, agriculture, forestry, and fishing employed 296,700 workers while manufacturing employed 329,000 workers. Kenya also is a member of COMESA and the Inter-Governmental Authority on Development (IGAD). The legal system, however, has remained slow to prosecute corporate malfeasance in both areas. The National Treasury principal secretary, however, must approve such purchases. The site documents the process of exporting and importing by product, by steps, by paperwork, and by individuals, including contact information for officials responsible relevant permits or approvals. Collective bargaining is common in the formal sector but there is no data on the percentage of the economy covered by collective bargaining agreements (CBA). Several categories of imported goods, specifically food products, electronics, and medicines, must have an import standardization mark (ISM). WebForeign investors face a number of challenges operating in Ethiopia. In a measure to boost the tourism industry, one-week employee vacations paid by employers are a tax-deductible expense. Foreign Direct Investment and Foreign Portfolio Investment Statistics, http://apps.bea.gov/international/factsheet/, Host Country Gross Domestic Product (GDP) ($B USD), U.S. FDI in partner country ($M USD, stock positions), Host countrys FDI in the United States ($M USD, stock positions). U.S.-Kenya bilateral trade in goods totaled $1.07 billion in 2019. In 2019, Kenya did not sign any new BITs or FTAs with other countries. 14. Contact at government agency or agencies are responsible for combating corruption: Rev. KenTrade is mandated to facilitate cross-border trade and to implement the National Electronic Single Window System. There are different bodies established to settle investment disputes. A stable environment, a Although Kenya contributes less than 0.1 percent of global greenhouse gas (GHG) emissions annually, the country has put measures in place to pursue a low carbon and resilient development pathway to help realize its Vision 2030: to transform Kenya into a newly industrializing, middle-income country. WebForeign investors seeking to establish a presence in Kenya generally receive the same treatment as local investors, and multinational companies make up a large percentage of Kenyas industrial sector. Corruption remains endemic and Transparency Internationals (TI) 2019 Global Corruption Perception Index ranked Kenya 137 out of 198 countries, worsening by seven spots compared to 2018. While some government agencies have amended laws or published clear guidelines for decision-making criteria, others have lagged in making their transactions transparent. NAIROBI, Kenya May 30 Nominee for Central Bank of Kenya Governor post Kamau Thugge has defended the proposed Finance Bill 2023 despite vehement In the last three years, it has moved up 54 places on this index. The law requires that all public officers declare their income, assets, and liabilities every two years. Kenya is also a signatory to the UN Anticorruption Convention and the OECD Convention on Combatting Bribery, and a member of the Open Government Partnership. Kenyas macroeconomic fundamentals remain among the strongest in Africa, with five to six percent GDP growth over the past five years, six to eight percent inflation, improving infrastructure, and strong consumer demand from a growing middle class. The act repeals the Bankruptcy Act (2012) and updates the legal structure relating to insolvency of natural persons and incorporated and unincorporated bodies. The United Kingdom and Kenya also agreed to begin discussions on a new trade agreement in anticipation of the UKs exit from the EU. The other 10 COMESA countries that are not part of the FTA trade with Kenya on preferential terms, observing tariff reductions between 60 and 80 percent. The nine COMESA FTA member countries are Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia, and Zimbabwe. Foreign currency is readily available from commercial banks and foreign exchange bureaus and can be freely bought and sold by local and foreign investors. The law identifies interests that public officials must register, including directorships in public or private companies, remunerated employment, securities holdings, and contracts for supply of goods or services, among others. In 2018, Societ Generale (France) also set up a representative office in Nairobi. According to the Africa Regional Integration Index Report 2019, Kenya is the second best integrated country in Africa and a leader in regional integration policies within the EAC and COMESA regional blocs, with strong performance on regional infrastructure, productive integration, free movement of people, and financial and macro-economic integration. The government is the largest employer in the formal sector, with an estimated 865,200 government workers in 2019. From time to time KEBS and the Anti-Counterfeit Agency conduct random seizures of counterfeit imports but there is no clear database of seizures kept. Proposed laws and regulations pertaining to business and investment are published in draft form for public input and stakeholder deliberation before their passage into law (http://www.kenyalaw.org/ and http://www.parliament.go.ke/the-national-assembly/house-business/bills-tracker). In general, competitive equality is the standard applied to private enterprises in competition with public enterprises. IRENE MWANGI Published 3 mins ago NAIROBI, Kenya May 30 Nominee for Central Bank of Kenya Governor post Kamau Thugge has defended the proposed Finance Bill 2023 despite vehement opposition from various stakeholders, insisting it will be the magic wand that will grow the nation economically. The Land Act, Water Act, and Fair Administrative Action Act (2015) also include provisions providing for public participation in agency actions. In the ongoing land registry digitization process, the Kenyan Government is working on a database, known as the single source of truth (SSOT), to eliminate fake title deeds in the Ministry of Lands. In February 2019, Kenya implemented a new Integrated Customs Management System (iCMS) which includes automated valuation benchmarking, automated release of green-channel cargo, importer validation and declaration, and linkage with iTax. The combined use of both the Central Depository and Settlement Corporation (CDSC) and an automated trading system has moved the Kenyan securities market to globally accepted standards. The Anti-Corruption agencies mandated to fight corruption have been inconsistent in coordinating activities, especially in bringing cases against senior officials. The fund would receive income from any future privatization proceeds, dividends from state corporations, oil and gas, and minerals revenues due to the national government, revenue from other natural resources, and funds from any other source. Chairperson and Commissioner The Ministry of Devolution has produced a guide for counties on how to carry out public participation; many counties have enacted their own laws on public participation. The Nairobi Securities Exchange (NSE) is the best ranked exchange in sub-Saharan Africa in terms of performance in the last decade. The Insolvency Act (2015) modernized the legal framework for bankruptcies. KTLN is aimed at lowering the cost of doing business in the country, which will be achieved through the provision of port, rail, and pipeline infrastructure in a cost effective and efficient manner. In 2017, KenTrade launched InfoTrade Kenya, located at infotrade.gov.ke, which provides a host of investment products and services to prospective investors in Kenya. km), and Kisumu (700 sq. China is an important economic player in Africa. Information contained in these declarations is not publicly available, and requests to obtain and publish this information must be approved by the relevant commission. Kenyas regulatory system is relatively transparent and continues to improve. Box 61130 00200 Nairobi, Kenya Kenya and its neighbors are working together to mitigate the threats of terrorism and insecurity through African-led initiatives such as the African Union Mission in Somalia (AMISOM) and the nascent Eastern African Standby Force (EASF). However, the U.S. and Kenya signed an intent to negotiate a Free Trade Agreement in February 2020 and launched negotiations in July 2020 towards a comprehensive trade agreement. The regulations or enforcement actions are appealable and are adjudicated in the national court system. Restrictions on foreign exchange, constraints around repatriation of funds, as well as restrictive customs regulations and shipping constraints pose significant hurdles. Foreign private investment in Africa has fallen dramatically as a result of COVID-19, with foreign direct investment (FDI) flows to the continent dropping by some 16% in 2020. The country has made significant progress in improving its investment climate and drawing investors from various sectors. SECRETARY ANTONY J. BLINKEN. Transparency International Kenya The Act is similar to the European General Data Protection Regulation requirements on data processing. Bilateral Investment and Taxation Treaties, 12. Kenya has been no exception. Kenya was among the first countries to ratify the African Continental Free Trade Area (AfCFTA) instruments. In an attempt to combat the import of counterfeits, the Ministry of Industrialization and the Kenya Bureau of Standards (KEBS) decreed in 2009 that all locally-manufactured goods must have a KEBS standardization mark. The Land (Extension and Renewal of Leases) Rules (2017) stopped the automatic renewal of leases and tied renewals to the economic output of the land that must be beneficial to the economy. United States business associations, however, raised concerns over the bill, pointing to its lack of clarity and the possibility such measures could run afoul of Kenyas commitments under the WTO. The Public Procurement and Asset Disposal Act (2015) offers preferences to firms owned by Kenyan citizens and to products manufactured or mined in Kenya in a GOK strategy called Buy Kenya Build Kenya which mandates 40 percent of GOK procurement be locally produced goods and services. Openness To, and Restrictions Upon, Foreign Investment, 2. 3. e-Sports and Gaming. In 2021 alone, China accounted for nearly US$5 billion in foreign direct investment in African countries. Historical lack of political will, limited progress in prosecuting past corruption cases, and the slow pace of reform in key sectors were reasons cited for Kenyas chronic low ranking. Despite this progress in the ease of doing business rankings, U.S. businesses operating in Kenya still face aggressive tax collection attempts and significant bureaucratic processes and delays in issuing necessary business licenses. Mombasa Port is the gateway for most of the East African trade. Outward investment has been focused in the East Africa Community and select central African countries, taking advantage of the EAC preferential access between the EAC member countries. Kenya is listed as a country of primary concern for money laundering and financial crime by the State Departments Bureau of International Narcotics and Law Enforcement. Kenya is neither party to the Government Procurement Agreement (GPA) within the framework of the World Trade Organization (WTO) nor an Observer Government. The Kenyan National Treasury has launched its mobile money platform government bond to retail investors locally dubbed M-Akiba purchased at USD 30 on their mobile phones. In an effort to encourage foreign investment, the GOK in 2015 repealed regulations that imposed a 75 percent foreign ownership limitation for firms listed on the Nairobi Securities Exchange, allowing such firms to be 100 percent foreign-owned. By the end of 2019, Kenya had 74 designated EPZs, with 137 companies and 60,383 workers contributing KSH 77.1 billion (about USD 713 million) to the Kenyan economy. Kenya has enjoyed a steadily improving environment for foreign direct investment (FDI). The Kenyan government regularly issues permits for key senior managers and personnel with special skills not available locally. Private sector representatives can serve as board members on Kenyas state-owned enterprises. Kenya has been no exception. Kenya moved up 6 ranks in the World Bank Groups Doing Business 2020 report, moving to 50 of 190 countries in the resolving insolvency category. Bankruptcy is not criminalized in Kenya. Kenya provides both fiscal and non-fiscal incentives to foreign investors (http://www.invest.go.ke/starting-a-business-in-kenya/investment-incentives/). WebInvestors permit (confirm endorsement of Investors permit on the valid passport) and the name of the company indicated on the permit should be that as of bullet no. For additional information about treaty obligations and points of contact at local IP offices, please see the World Intellectual Property Organizations country profiles at http://www.wipo.int/directory/en/. Kenya was removed from the inter-governmental Financial Action Task Force (FATF) Watchlist in 2014 following progress in creating the legal and institutional framework to combat money laundering and terrorism financing. At $6.3 billion as of March 2023 according to Treasury figures, Chinese loans account for roughly 64 per cent of Kenyas current stock of bilateral external debt and only 17 per cent of total external public debt. The BRS also devolves to the counties business registration services such as registration of business names and promoting local business ideas/legal entities, thus reducing costs of registration. The Kenyan banking sector in 2020 included 40 operating commercial banks, one mortgage finance company, 13 microfinance banks, nine representative offices of foreign banks, 70 foreign exchange bureaus, 15 money remittance providers, and three credit reference bureaus which are licensed and regulated by the Central Bank of Kenya. The GOK has instituted different programs to link and create employment opportunities for the youth, which include a website (http://www.mygov.go.ke/category/jobs/). However, unless classified as agricultural, there are no restrictions on foreign-owned companies leasing land or real estate. Employers in all sectors routinely bribe labor inspectors to prevent them from reporting infractions, especially in the area of child labor. The 2010 constitution guarantees protection from expropriation, except in cases of eminent domain or security concerns, and all cases are subject to the payment of prompt and fair compensation. The new method permits state agencies to bypass existing public procurement laws under certain circumstances. The act created the Nairobi Financial Centre Authority to establish and maintain an efficient operating framework to attract and retain firms. The unit focuses on reducing the bureaucratic steps related to setting up and doing business in the country. A slump in both domestic and foreign spending, reduced government investment in social programmes (including sanitation and social housing in urban informal settlements) as well as the increasing debt burden in Sub-Saharan Africa have compounded the situation and undermined advances towards public investment in housing. The GOK does not promote or incentivize outward investment. Any person who publishes or makes public information contained in public officer declarations without permission may be subject to fine or imprisonment. The Mining Act (2016) restricts foreign participation in the mining sector and reserves the acquisition of mineral rights to Kenyan companies, requiring 60 percent Kenyan ownership of mineral dealerships and artisanal mining companies. make a proposal investment of at least USD 100,000 or the equivalent in another currency Local investor - make a proposal investment of at least KSh.1,000,000 or the equivalent in another currency Read more about obtaining an investment certificate here. An investment guide to Kenya, also referred to as iGuide Kenya, can be found at http://www.theiguides.org/public-docs/guides/kenya/about#.