WebSectors to invest in Kenya include; Energy, Financial Services, information, Communication, Technology, Agriculture, Infrastructure, Manufacturing, Real +254 (0)20 363 6050. There is relative political stability due to the Building Bridges Initiative (BBI) and President Kenyatta has remained focused on his second term Big Four development agenda, seeking to provide universal healthcare coverage; establish national food security; build 500,000 affordable new homes; and increase employment by doubling the manufacturing sectors share of the economy. According to the Kenya National Bureau of Statistics (KNBS), in 2019 non-agricultural employment in the formal sector was at 18.1 million, with nominal average earnings of Ksh778,248 (USD 7,200) per person per annum. Publicly listed companies adhere to International Financial Reporting Standards (IFRS) that have been developed and issued in the public interest by the International Accounting Standards Board. ICDC assumes a coordinating role over the Kenya Ports Authority (KPA), Kenya Railways Corporation (KRC) and Kenya Pipeline Company (KPC). The act also calls for at least 30 percent of government procurement contracts to go to firms owned by women, youth, and persons with disabilities. Once the product qualifies for a Confirmation of Conformity, KEBS will issue the ISM free of charge. In 2021 alone, China accounted for nearly US$5 billion in foreign direct investment in African countries. Kenya has 15 money remittance providers as at 2020 following the operationalization of money remittance regulations in April 2013. The law provides for equal pay for equal work. Box 61130 00200 Nairobi, Kenya The Nairobi Securities Exchange (NSE) is the best ranked exchange in sub-Saharan Africa in terms of performance in the last decade. KenTrade is mandated to facilitate cross-border trade and to implement the National Electronic Single Window System. In 2017, KenTrade launched InfoTrade Kenya, located at infotrade.gov.ke, which provides a host of investment products and services to prospective investors in Kenya. But the Finance Act 2019 introduced taxes to non-resident ship owners, and the Finance Act 2020 enacted a 1.5 percent Digital Service Tax (DST), which will be implemented in January 2021. In 2014, the Kenya Revenue Authority launched an Alternative Dispute Resolution (ADR) mechanism aiming to provide taxpayers with an alternative, fast-track avenue for resolving tax disputes. To strengthen Kenyas manufacturing capacity, the government offers incentives to produce goods for export. In general, competitive equality is the standard applied to private enterprises in competition with public enterprises. The Kenyan banking sector in 2020 included 40 operating commercial banks, one mortgage finance company, 13 microfinance banks, nine representative offices of foreign banks, 70 foreign exchange bureaus, 15 money remittance providers, and three credit reference bureaus which are licensed and regulated by the Central Bank of Kenya. The Republic of Kenya has legislations that address the interests of Foreign Investors, (click link for comprehensive information) and The other 10 COMESA countries that are not part of the FTA trade with Kenya on preferential terms, observing tariff reductions between 60 and 80 percent. The regulations or enforcement actions are appealable and are adjudicated in the national court system. There is no systematic executive or other interference in the court system that affects foreign investors, however, the courts face allegations of corruption, as well as political manipulation in the form of unjustified budget cuts which significantly impact the ability of the judiciary to deliver on its mandate and delayed confirmation of nominated Judges by the President resulting in an understaffed judiciary and long delays in rendering judgments. The Third Medium Term Plan of Kenyas Vision 2030 economic development agenda calls for a study for an SEZ at Dongo Kundu, and an SEZ was also under consideration at a location near the Olkaria geothermal power plant. Kenyas banking sector has been affected by the COVID-19 pandemic. Kenya developed the draft Financial Markets Conduct bill (2018) to consolidate and harmonize the financial sector in the country. Kenyas membership in the East African Community (EAC), the Africa Continental Free Trade Area (AfCFTA), and other regional trade blocs provides growing access to larger regional markets. The governments export promotion programs do not distinguish between goods produced by local or foreign-owned firms. The Kenya Labour Market Information System (KLMIS) portal (https://www.labourmarket.go.ke/), run by the Ministry of Labour and Social Protection in collaboration with the labor stakeholders, is a one-stop shop for labor information in the country. There are no known material compliance gaps in either law or practice with international labor standards that would be expected to pose a reputational risk to investors. By the end of 2019, Kenya had 74 designated EPZs, with 137 companies and 60,383 workers contributing KSH 77.1 billion (about USD 713 million) to the Kenyan economy. The Public Procurement and Asset Disposal Act (2015) offers preferences to firms owned by Kenyan citizens and to products manufactured or mined in Kenya in a GOK strategy called Buy Kenya Build Kenya which mandates 40 percent of GOK procurement be locally produced goods and services. This had the unintended side effect of introducing coordination and jurisdictional confusion between the commission and the Ministry of Lands mainly fueled by land interests by the political class. Corporate governance in SOEs is guided by the 2010 Constitution chapter 6 on integrity, Leadership and Integrity Act 2012 and the Public Officer Ethics Act 2003 which provide integrity and ethical requirements governing the conduct of State and public officers. 03 / Select Countries You can add more than one country or area. The Mining Act (2016) restricts foreign participation in the mining sector and reserves the acquisition of mineral rights to Kenyan companies, requiring 60 percent Kenyan ownership of mineral dealerships and artisanal mining companies. The National Treasury is increasingly focused on efforts to ensure prudent debt management. Transparency Internationals (TI) 2019 Global Corruption Perception Index ranks Kenya 137 out of 198 countries, six places lower than in 2018 and Kenyas score of 28 remains below the sub-Saharan Africa average of 32. In 2020, a high-level conviction was secured for a Member of Parliament setting a precedent for top officials convictions. Kenya Investment Authority (KenInvest), the countrys official investment promotion agency, is viewed favorably by international investors (http://www.invest.go.ke/). Work permit processing remains a problem, with overlapping and sometimes contradictory regulations. WebThe 2020 Foreign Investment Survey (FIS) is the sixth in a series of similar surveys that have been conducted since 2010 (FIS 2010, FIS 2013, FIS 2015, FIS 2016, FIS 2018). The legal system, however, has remained slow to prosecute corporate malfeasance in both areas. A task force on the merger comprising staff from KIPI, ACA, KECOBO, the Ministry of Industrialization, Trade and Enterprise Development is drafting the instruments of the merger which has led to a draft GOE named Intellectual Property Office of Kenya (IPOK) and has also drafted Intellectual Property Office Bill, 2020 for establishing IPOK. The Finance Act (2014) also reintroduced the withholding VAT system by government ministries, departments, and agencies. Performance and Data Localization Requirements. 2020 Investment Climate Statements: Kenya, An official website of the United States Government, http://www.theiguides.org/public-docs/guides/kenya/about#, http://www.parliament.go.ke/the-national-assembly/house-business/bills-tracker, https://www.wto.org/english/thewto_e/countries_e/kenya_e.htm, http://www.invest.go.ke/starting-a-business-in-kenya/investment-incentives/, https://drive.google.com/file/d/0BytnSZLruS3GQmxHc1VtZkhVVW8/edit, http://kenyalaw.org/kl/fileadmin/pdfdownloads/LegalNotices/2020/LN69_2020.pdf, https://www.pc.go.ke/sites/default/files/2019-06/APPROVED%20PRIVATIZATION%20PROGRAMME.pdf, https://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2015_09_28_Kenya_Final_Country_Report.pdf, https://eacc.go.ke/default/report-corruption/, https://kenya.eregulations.org/menu/61?l=en. Kenya is neither party to the Government Procurement Agreement (GPA) within the framework of the World Trade Organization (WTO) nor an Observer Government. Kenya does not have a competition or Anti-Trust policy, however the Competition Act (2010) created the Competition Authority of Kenya (CAK) which covers restrictive trade practices, mergers and takeovers, unwarranted concentrations, and price control. Eliud Wabukala (Ret.) Figures are from 2012 (latest available). China is an important economic player in Africa. Several categories of imported goods, specifically food products, electronics, and medicines, must have an import standardization mark (ISM). The NSE is a member of the Association of Futures Market and is a partner exchange in the United Nations-led SSE initiative. Key CBK Indicative Exchange Rates. The governments export promotion programs do not distinguish between goods produced by local or foreign-owned firms. KenInvests mandate is to promote and facilitate investment by assisting investors in obtaining the licenses necessary to invest and by providing other assistance and incentives to facilitate smoother operations. Regional conflict, most notably in Ethiopia, Somalia, and South Sudan, sometimes have spill-over effects in Kenya. Several mobile money platforms have achieved international interoperability, allowing the Kenyan diaspora to conduct financial transactions in Kenya from abroad. In 2019, the World Trade Organization conducted a trade policy review for the East Africa Community (EAC), of which Kenya is a member (https://www.wto.org/english/tratop_e/tpr_e/tp484_e.htm). The purpose of the USF is to fund national projects that have significant impact on the availability and accessibility of ICT services in rural, remote, and poor urban areas. The investment policy intends to guide laws being drafted to promote and facilitate investments in Kenya. WebInvestment Environment Strategic Geographical Location Strong Regional Player Kenya is the largest and the most advanced economy in East and Central Africa; with strong Commercial disputes, including those involving government tenders, are more common. Foreign investors seeking to establish a presence in Kenya generally receive the same treatment as local investors, and multinational companies make up a large percentage of Kenyas industrial sector. The minimum foreign investment to qualify for GOK investment incentives is USD 100,000, a potential deterrent to foreign small and medium enterprise investment, especially in the services sector. The prevalence of gray market products genuine products that enter the country illegally without paying import duties also presents a challenge, especially in the mobile phone and computer sectors. The GOK has not yet effectively implemented this provision. More information on permit classes can be found at https://kenya.eregulations.org/menu/61?l=en. The majority of the exports are textiles Kenyas third largest export behind tea and horticulture and more recently handicrafts. The site seeks to help address the challenge of inadequate supply of crucial employment statistics in Kenya by providing an interactive platform for prospective employers and job seekers. However, Kenyas large informal sector consisting of approximately 80 percent of the labor force makes accurate labor reporting difficult. The Mining Act 2016 provides for holders of mineral rights to develop a comprehensive community development agreement that secures socially responsible investment and provides for employment preference for those living in communities around mining operations. WebThis list of investors with investments in Kenya provides data on their investment activities, fund raising history, portfolio companies, and recent news. In 2019, Kenya did not sign any new BITs or FTAs with other countries. In 2021 alone, China accounted for nearly US$5 billion in foreign direct investment in African countries. Foreign advocates may practice as an advocate in Kenya for the purposes of a specified suit or matter if appointed to do so by the Attorney General. Kenya, however, still performs poorly in the post-filing index, which measures value-added tax (VAT) refunds and corrections made to corporate income tax returns, scoring only 59.6 out of 100 in post-filing efficiency. The Insolvency Act (2015) increased the rights of borrowers and prioritizes the revival of distressed firms. Correlation analysis amongst FDI and other factors, for example, human capital, private ventures, government spending and openness of host country to foreign exchange likewise uncovered a The Kenyan government regularly issues permits for key senior managers and personnel with special skills not available locally. China is an important economic player in Africa. In 2014, CAK imposed a filing fee for mergers and acquisitions set at one million Kenyan shillings (KSH) (approximately USD 10,000) for mergers involving turnover of between one and KSH 50 billion (up to approximately USD 500 million).