1. What is Kenya’s government policy on overseas companies doing business in Kenya?
18. What taxes are levied by the government?
19. Do Kenyan produced products have access to other markets?
20. Are there Avoidance of Double Taxations Agreements (DTA) and Investment Promotion and Protection Agreements (IPPA) between Kenya and other countries?
21. What customs procedures are applied when goods are being imported?
22. Do you have labour laws in Kenya? What are the important provisions these laws?
23. Do you have regional offices?
1: What is Kenya’s government policy on overseas companies doing business in Kenya?
Kenya has long recognised the benefits of inward investments and has welcomed overseas-owned companies looking to do business in and with Kenya. Kenya Investment Authority is funded by the Kenya government and demonstrates Kenya’s commitment to attracting inward investments by providing free, confidential services to prospective investors. 2: What services does Kenya Investment Authority provide?Kenya Investment Authority provides support to foreign and domestic companies looking to set up or expand in Kenya. We do this by providing a fully integrated advisory service, assistance in acquiring licences and requisite entry permits in addition to aftercare support. Specific services include:- Key information on regulatory factors
- Issuance of the Investment Certificate that facilitates immediate start of business
- Key information on location factors and business opportunities
- Sector information and introduction to key sector networks
- Support to build collaborative partnerships with Kenyan businesses.
- * Continued support to companies once they have established.
For more information about our services please visit the click here 3. Are there any fees or charges required to obtain the Investment Certificate?No. The application for and issuance of the Investment Certificate is free of charge. 4. How long does it take to evaluate and approve the Investment Certificate?Depending on the speed with which a prospective investor presents the requisite documents on application for the Certificate, it takes about 1-3 working days. 5. Can I get government protection if I was to relocate my business to Kenya?Yes. The Constitution of Kenya guarantees protection of the investment. Additionally, if the investment is from a country that has signed an Investment Promotion and Protection Agreement with Kenya, then there will be additional protection guarantees in the Agreement. Furthermore;- The Foreign Investment Protection Act guarantees against expropriation of private property by government.
- Kenya is a signatory to and Member of the Multilateral Investment Guarantee Agency (MIGA) an affiliate of theWorld Bank which guarantees investors against loss of investment to political problems in host countries.
- Kenya is also a signatory to International centre for Settlement of Investment Disputes (ICSID) which is achannel for settling disputes between foreign investors and host governments.
6. Do I need a local partner to operate any business in Kenya?No. An investor is free to choose to operate their business with either 100% ownership or in partnership with local investors. 7. Are there any government projects/companies available that an investor can buy or invest in?Yes. These will mainly be infrastructure projects that are promoted by the government on the basis of Private Public Partnership (PPP). Information on specific projects can be provided by KenInvest. 8. What type of land is available in Kenya?Kenya has government, trust and privately owned land available. 9. Does the Kenya Investment Authority have an ‘Investment Fund’ from which approved investments can benefit?No. Kenya Investment Authority does not provide funding to investors, but can advise on sources of financing. 10.Is it easy to transfer money out of Kenya by companies set up by foreign investors who need to make overseas payments?Yes. Foreign companies may freely transfer profits after complying with tax obligations as per the provisions of the Foreign Investment Protection Act. 11: How do I register and establish my company? It is a straightforward process to establish a company in Kenya and there are no separate rules for foreign nationals. To register a company, certain mandatory documents such as the ‘Memorandum of Association’ and ‘Articles of Association’ must be filed with the Registrar of Companies within the Kenya State Law Office. The procedures, cost of registering a company and the duration taken for registration can be found at the website below. http://www.attorneygeneral.go.ke/ 12: What type of company should I set up? The majority of foreign investors will establish a Kenyan registered company when setting up in Kenya. - There are four different types of Kenyan registered companies:
- Private company limited by shares (Ltd). The members’ liability is limited to the amount unpaid on shares they hold
- Private company limited by guarantee – the members’ liability is limited to the amount they have agreed to contribute to the company’s assets if it is wound up
- Private unlimited company – there is no limit to the members’ liability
- Public company limited by shares (Plc) – the company’s shares are offered for sale to the general public through a stock exchange and the members’ liability is limited to the amount unpaid on shares held by them
Other business entities include;- Partnerships – overseas investors can establish a partnership in Kenya. The partners have ‘joint and several’ liability for all debts
- Limited Partnerships – consists of one or more persons called ‘general partners’ who are liable for all debts and one or more persons called ‘limited partners’ who contribute a sum or sums of money as capital, or property valued at a stated amount. Limited Partners are not liable for debts/obligations beyond the amount contributed
- Limited Liability Partnership – this structure provides the benefit of limited liability but allows its members the flexibility of organising its internal structure and tax arrangements as a traditional partnership.
You are strongly advised to seek legal advice before deciding on the best entity that suits your kind of business.
13. What are the approval and licensing procedures of new investment projects?KenInvest will facilitate approvals of prospective investment projects which have their details submitted on a prescribed application form issued by KenInvest. The project must comply with the environment, health and security standards set in the pertinent Kenyan laws. KenInvest will then issue an Investment Certificate to all projects that are ready to start operations and have complied with the standards above. 14. Are there any restrictions to doing business in Kenya?Whilst there are no blanket restrictions on doing business in Kenya, foreign investments in the telecommunication and insurance sectors are subject to specific requirements on the percentage of ownership. 15: What are the general living conditions in Kenya?Kenya has a modern and vibrant social and economic fabric, with a good range of schools, both public and private, affordable housing, world class entertainment and hospitality facilities, excellent communication links, as well as adequate healthcare. We have a warm and welcoming people, and English is widely spoken both in formal and informal set ups. 16. What are the immigration and visa requirements?Information on immigration, visa and permits requirements can be accessed at http://www.immigration.go.ke 17. Does the Government grant incentives to investors?Yes. There are a number of tax based incentives available in Kenya, mainly covering exemptions from duty and VAT on capital equipment and machinery to be used in the investment project. Other incentives include capital deductions and investment allowances, details of which may be accessed at; http://www.kra.go.ke , and; http://www.kra.go.ke The incentives are granted on a case by case basis and are approved by the Ministry of Finance. KenInvest assists by applying for the incentives upon request from the investor. 18. What taxes are levied by the government?Taxes levied in Kenya are administered by the Kenya Revenue Authority (KRA), and information on these may be accessed at http: //www.kra.go.ke 19. Do Kenyan produced products have access to other markets?Yes, including; - Unrestricted entry into the United States of America market under African Growth and Opportunity Act (AGOA) for specified Kenyan products.
- Market access to the Common Market for East and Southern Africa (COMESA) market of 400 million people.
- Market access to the East African Community (EAC) market of 150 million people.
- Market access to the European Union
- Many Kenyan products have access to other markets in Europe, USA and Japan.
20. Are there Avoidance of Double Taxations Agreements (DTA) and Investment Promotion and Protection Agreements (IPPA) between Kenya and other countries?Yes; - Kenya has concluded Avoidance of Double Taxation Agreements with; United Kingdom, Germany, India, Canada, Norway, Sweden, Denmark, Zambia, France, South Africa, East African Community and Thailand, and is currently negotiating a number of others with various countries.
- Kenya has concluded Investment Promotion and Protection Agreements with France, Finland, Germany, Italy, Netherlands, Switzerland, China, Libya, Iran, Burundi and the United Kingdom, and is currently negotiating a number of others with various countries.
21. What customs procedures are applied when goods are being imported?Information on customs procedures may be found at http://www.kra.go.ke/index.php 22. Do you have labour laws in Kenya? What are the important provisions these laws?Yes. Information on labour laws in Kenya may be accessed at http://www.labour.go.ke/ 23. Do you have regional offices? Yes. KenInvest’s headquarters are in Nairobi and we also operate a liaison office at Jomo Kenyatta International Airport (JKIA), and regional offices in Eldoret, Mombasa and, Kisumu.
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