Kenya lifts ceiling on foreign ownership of listed firms

Kenya amended Capital Markets (Foreign Investors) Regulations, 2002, by issuing Legal Notice No. 113 of 2015. This amendment abolished the 75 per cent threshold of foreign ownership in listed companies and allows, as a general rule, 100 per cent ownership by foreign investors. However, the Cabinet Secretary may prescribe a maximum foreign shareholding in an issuer or listed company by notice in the gazette. He may only exercise his power above where: 1) in a privatization transaction, the government or its agency is divesting its shares to the public; 2) some level of local ownership in a strategic industry or sector in the country is to be maintained; or 3) it is in the national interest.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • Capital Market Authority of Kenya, The Capital Markets (Foreign Investors) Regulations with 2015 Amendments, http://www.cma.or.ke/index.php?view=download&alias=445-the-capital-markets-foreign-investors-regulations-with-2015-amendments&category_slug=regulations&option=com_docman&Itemid=523, 11 Jun 2015
  • The EastAfrican, Kenya joins Tanzania in lifting cap on foreign ownership of listed firms, http://www.theeastafrican.co.ke/business/Kenya-joins-Dar-lifting-cap-on-foreign-ownership-of-listed-firms/-/2560/2842076/-/3yitmez/-/index.html, 22 Aug 2016