Law and regulations on investments
Kenya is a member of UNCTAD’s international network of transparent investment procedures.
The Investment Promotion Act (2004) is the main legislative framework governing investments. Other texts regulating investments are listed below
Other texts regulating investments
|Constitution of Kenya (2010)||Public Private Partnership Act (2013)||Companies Act (2015|
Limits on foreign control
|Sector||Maximum foreign ownership|
|Firm listed on the Nairobi Securities Exchange||No limit (100%)|
|Derivative exchanges (options, futures)||85%|
|Artisanal mining company||40%|
|Insurance company||2/3rd with no single person controlling more than 25%|
|Private security company||75%|
|Telecommunication company||80% (during the first three years after receiving a license)|
In order to be able to take advantage of benefits reserved to investors, the foreign investor has to obtain an investment certificate. The document, issued for free by Kenya Investment Authority, allows the investor a legal entitlement to certain licences.
Expropriation and compensation
The Constitution of Kenya (2010) clearly stipulates that investors cannot be expropriated except in cases of eminent domain or security concerns. In case of expropriation, the Constitution clearly specifies that the government of Kenya has to pay promptly and adequately compensate the investor. The Land Acquisition Act (2010) precises specific compensation for expropriation of land.
Investments made by foreign investors benefit from an extra protection.
In case of dispute, the investor has different options. He may notably turn to the court or start an arbitration procedure. Arbitration is governed by the Arbitration Act (1995).