Kenya -ownership rule for foreign companies comes into force

12 July 2016 - RPS Partnership

RPS Partnership has been working in Kenya for many years and we assist organisations to live and work there in Nairobi and up country as well as in the region. We run first aid courses, security awareness courses and conflict management and disengagement skills courses together with Crisis Management and contingency planning courses. All this mitigates the risk to staff and businesses.

Interesting news from Kenya with regards to the ownership rule for foreign companies working in Kenya. This comes into force as of now.

Kenya has implemented the Companies Act 2015 under which foreign companies registering in the country must cede at least 30 percent of their shareholding to people who are Kenyan citizens by birth.

Businesses that fail to comply with the rule will be fined about USD50,000, local media have reported. The law will not be applied retrospectively.

The regulation could make it harder for Nairobi to attract foreign investment, with the American Chamber of Commerce, a lobby of US investors in Kenya, stating, “It may be very expensive, if not impossible, for Kenyan individuals to purchase or invest at least 30 percent in a foreign company.”

Please contact us if you are planning to live, work or travel to Kenya and want advice or training. We have a consultant running security and first aid courses in Nairobi this week, so contact us for up to date travel advice. Download our pdf file to find out about conflict management and disengagement skills training courses for you and your staff.

Contact us on [email protected]

Photos: RPS Partnership working in Kenya.

Information: with thanks to PGI.