FAQs

To register a company, a certain mandatory document such as the ‘Memorandum of and Articles of Association’ must be filled with the Register of Companies within the Kenyan State Law Office.

The procedures, cost of registering a company and the duration taken for registering can be found (www.attoneygeneral.go.ke) or eprocedures.investkenya.go.ke The One Stop Center at Invest Kenya has an officer seconded from the Business Registration Services (BRS) to provide guidance on the same.

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. This can be a local or a branch of Foreign Company.
• 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 to the amount unpaid on shares held by them.

For more details, visit eprocedures.investkenya.go.ke

Other business entities include:

• Partnerships-Overseas investors can establish partnership in Kenya.
• The partners have a joint and several ‘liability for all debts.
• Limited partnerships-consists of one or more persons called ‘general’ who are liable for all debts and one or more persons called ‘limited partners’ who contribute a sum 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 but allows its members the flexibility of organizing its internal structure and tax arrangements as a
  traditional partnership.

Investors are strongly advised to seek legal advice before deciding on best entity that suits their kind of business.

Kenya has long recognized the benefits of inward investments and has welcomed overseas owned companies looking to do business in and with Kenya. The Authority is funded by the Kenya government and demonstrates Kenya’s commitment to attracting inward investments by providing free, confidential services to prospective investors. Overseas investments are protected through various international and multilateral instruments, and there are attractive incentives available.

The application for and issuance of the Investment Certificate is free of charge.

Depending on the speed with which a prospective investor presents the requisite documents on application for the certificate, it takes about 1-5 working days.

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 guarantee 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 the World Bank which guarantees investors against a non-commercial risk.
• Kenya is also a signatory to the International Centre for Settlement of Investment Disputes (CSID) which arbitrates disputes between foreign investors and host government.
• Africa Trade Insurance Agency (ATIA), that provides insurance against commercial and non-commercial risks as headquarters in Nairobi.

An investor is free to choose to operate their business with either 100% ownership or in a partnership with local investors except in the issuance, ICT, Air service and investments in the stock market.

There will mainly be infrastructure projects that are promoted by the government on the basis of Private Public Partnerships (PPP). Information specific projects can be provided by Invest Kenya and also available on the digital platform eprocedures.investkenya.go.ke

Land in Kenya is classified as Public, Community or Private. The land is available for lease up to 99 years renewable for foreign investors. For more on this visit opportunities.invest.go.ke

The Authority does not provide funding to investors but can advise on sourcing of financing.

Foreign companies may freely transfer profits after complying with Tax obligations. The country has sufficient foreign exchange.

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 and vibrant education sector. We have warm and welcoming people, and English is widely spoken both in formal and informal setups. The weather in most parts of the country is excellent. The country is the leading headquarters of two UN agencies and thus hosts a sizeable international community.

Information on immigration, via and permits requirements can be accessed at www.immigration.go.ke and an officer from the Department of Immigration at the One Stop Center for investors located in Invest Kenya offices.

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 investment project.
Other incentives include capital deductions and investment allowances, details of which may be accessed at www.kra.go.ke or eprocedures.investkenya.go.ke and our website www.investkenya.go.ke The incentives are granted on a case-by-case basis and are approved by the Ministry of Finance. Invest Kenya will assist in applying for the incentives upon request from the investor.

Taxes levied in Kenya are administered by the Kenya Revenue Authority (KRA), and information on these may be accessed at www.kra.go.ke or from the KRA officers stationed at the One Stop Centre.

• Kenya has unrestricted entry into the United States of America market under Africa Growth and Opportunity Act (AGOA) for up to 6000 products.
• Market access to the Common Market for East and Southern Africa (COMESA) market of 492 million people.
• Market Access to the East African Community (EAC) of about 150 million people.
• Market access to European Union under the (EAP) arrangement.
• Many Kenyan products have access to other markets in Europe, USA and Japan.
• enya negotiates and signs bilateral special status agreements with various countries.

Kenya has concluded Avoidance of Double Taxation Agreements with United Arab Emirates, United Kingdom, Germany, India, Canada, Norway, Sweden, Denmark, Zambia, France, South Africa and Singapore 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, The Islamic Republic of Iran, Burundi, and the United Kingdom, and is currently negotiating a number of others.

Information on custom procedures may be found at www.kra.go.ke

Kenya has considerable labor flexibility and ranks highly at a global level. Information on labour laws in Kenya may be accessed at eprocedures.investkenya.go.ke or www.labour.go.ke

Invest Kenya head office is in Nairobi, regional offices in Eldoret, Kisumu and Mombasa.

Invest Kenya works closely with the 47 County Governments to ensure seamless investment promotion and facilitation.