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Doing Business in Kenya: Frequently Asked Question's
1: What are the procedures of establishing a business in Kenya ?
Registration of a company in Kenya with the Registrar of companies. This could be:-
• A branch office of an overseas company, or
• A locally incorporated company
Registration could also be done under the Business Names Act.
2: What are the approval and licensing procedures of new investment?
• The Kenya Investment Authority (KIA) will process and grant approvals of new investment, once proposals are submitted on a prescribed application form. Proof of company registration must be attached to the application.
• Where the investment may have adverse impact on security, health or environment, clearance from the competent authorities (such as, National Environment Management Authority (NEMA), Public Health authorities, etc) will be required before approval is granted.
• Also, clearance is required from parent ministries for investments in restricted areas before IPC approval is granted. These investments comprise:-
• Investments to produce excisable goods (clearance from Customs and Excise is a pre-condition.
• Investments in forest products and mining (clearance from Ministry of Environment and Natural resources).
• Investments in energy and petroleum products (clearance from Ministry of Energy)
• Investments in the manufacture Under Bond Programme (MUB) (authority to manufacture under bond must be obtained from Minister for finance).
• Investments in the tourism industry (clearance from the Ministry of Tourism).
3: Are there any restrictions to doing business in Kenya ?
• Equity restrictions are only in telecommunications sector (a minimum of 30% must be local).
• Investments in the insurance industry must have local participation.
• Ownership of agricultural land by foreigners is restricted.
• Engagement in petty business by foreigners is also restricted.
4: How are the living conditions?
Security situation in Kenya is satisfactory and not worse than that prevailing in many parts of the world.
Adequate health facilities of international standards are available, particular in urban areas.
High quality educating for investors locating in Kenya is available for their families. Overseas curricular is available in most of the international schools.
There are adequate world class entertainment facilities for the comfort
About the Author: Robert is a tour consultant in Kenya and has planned business and vacation safaris for over 10,000 tourists in the East African region. He is a tour operation- major and involved in National tourism policy development in Kenya.
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