Kenya implemented 30% domestic ownership requirement for newly registering foreign companies
15 Jun 2016
Kenya's Attorney-General appointed 15 June 2016 as the date to enforce in full the Companies Act 2015. This new law requires that foreign companies registering in Kenya cede at least 30 per cent of their shareholding to persons who are Kenyan citizens by birth. Investors who fail to comply with this rule will be fined Sh 5 million. However, the new law does not apply to existing companies already registered in Kenya. The law also empowers the Treasury Cabinet secretary to issue regulations on how foreign companies will operate in Kenya.
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Sources:
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Kenyalaw.org, Legal Notice No. 109 on the Companies Act, 2015, http://kenyalaw.org/kl/index.php?id=6177, 16 Jun 2016
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Kenya-eRegulations.org, The Companies Act No. 158 of 2015, https://kenya.eregulations.org/media/TheCompaniesAct_No17of2015_RevisedCompressed.pdf, 15 Sep 2015
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Business Daily Africa, Foreign companies to face 30 per cent local ownership rule, http://www.businessdailyafrica.com/Corporate-News/Foreign-companies-to-face-30-per-cent-local-ownership-rule/539550-3290444-b9ir5x/index.html, 11 Jul 2016
