Introduction
Since 2005, Kenya has embarked on a program aimed at fostering local investments in the country. Investors in Kenya are required to register with the Kenya Investment Authority (Kenvest). In Kenya a foreign investor is defined as a natural person who is not a citizen ,a partnership whose controlling interests is persons who are not citizens of Kenya and a company incorporated under the laws of a country other than Kenya. Foreign investors seeking to invest in Kenya may apply for an Investment Certificate.
The foreign investor is only entitled to an investment certificate if the investor meets the following conditions;
- The application for investment certificate must be complete and it meets all the requirements of the applicable law.
- The amount to be invested is USD 100,000 or its equivalent in another currency.
- The target investment is lawful and beneficial to the country.
In determining whether the target investment is beneficial to the country, the Kenya Investment Authority shall consider the investment and the investment activity shall lead to the following;
- creation of employment for Kenyans;
- acquisition of new skills or technology for Kenyans;
- contribution to tax revenues or other Government revenues;
- a transfer of technology to Kenya;
- An increase in foreign exchange , either through exports or import substitution;
- Utilization of domestic raw materials, supplies and services;
- Adoption of value addition in the processing of local, natural and agricultural resources;
- Utilization, promotion, development and implementation of information and communication technology;
- Any other factors that the Authority considers beneficial to Kenya.
The Kenya Investment Authority may revoke an investment certificate if the certificate was issued on the basis of incorrect information and if the certificate was obtained through fraud.
Requirements for an investor permit application;
- Investment application form (original)
- Cover letter (original) The Letter should be addressed to the Managing Director of Kenya
Investment Authority and should indicate the activities of the company. - Memorandum and articles of association (copy)
- Certificate of incorporation (copy) for local companies
- Certificate of compliance (copy) for a branch of a foreign company
- Proof of investment
- Proof of investment can be in the form of a bank statement (whether from a local bank or a
foreign bank), equipment and assets on site or inform of Import declaration forms
/receipts showing that the investor has already bought equipment /assets worth that
amount or any other evidence that the amount to be invested is 100,000 USD for foreign investors.
The holder of an investor permit is allowed to do the following;
- Class D entry permits for management and technical staff;
- Class C, F and G permits for owners, shareholders and partners.
An foreign investor having been issued with an investment certificate is at liberty to apply for an investor permit. An investor permit is also known as Class G permit and it is issued to investors who wish to carry on business in Kenya.
The application for an investor’s permit shall be in the prescribed form. Once you have made the application, you have to wait between 2 to six months for the permit to be processed.
Once the investor permit is issued , its only valid for two years. The applicant is also required to pay a security bond for $1,000.
The provision of general information herein does not constitute an advocate-client relationship with any reader. This article is provided free of charge for information purposes only; it does not constitute legal advice and should be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary as set in the article should be held without seeking specific legal advice on the subject matter. Your If you have any query regarding the same, please do not hesitate to contact us via legal@wnkadvocates.com
