Kenya repealed the 30% domestic ownership requirement for foreign companies

On 20 September 2016, the new Finance Act (Act No. 38 of 2016) was adopted, repealing the 30 per cent domestic ownership requirement for foreign companies established in the Companies Act 2015. The abolition of the ownership requirement will become effective on 1 January 2017.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • Kenya-eRegulations.org, Finance Act 2016, http://kenyalaw.org/kl/fileadmin/pdfdownloads/AmendmentActs/2016/FinanceAct_No38of2016.pdf, 20 Sep 2016
  • Kenya-eRegulations.org, The Companies Act No. 158 of 2015, http://kenyalaw.org/kl/fileadmin/pdfdownloads/Acts/TheCompaniesAct_No17of2015_RevisedCompressed.pdf, 15 Sep 2016
  • Oraro (legal alert), Karibu Kenya (Welcome to Kenya)! Repeal of the 30% local shareholding requirement for foreign companies in the Companies Act, 2015, http://www.oraro.co.ke/alert/karibu-kenya-welcome-to-kenya-repeal-of-the-30-local-shareholding-requirement-for-foreign-companies-in-the-companies-act-2015/, 11 Oct 2016