Kenya to allow foreign firms to retain full ownership
10 November 2015, 21:19
Nairobi - Kenya plans to reform its
company law in order to allow foreign firms to establish local branches that
can own 100 percent, a senior official said on Monday.
Cabinet Secretary for Industrialization and Enterprise
Development Adan Mohamed said during a business forum in Nairobi that Kenya
recognizes the role that foreign capital plays in the economic development of
the country and will create better environment for foreign investment.
President Uhuru Kenyatta in September signed into law the
Companies Act. The new law, which is yet to be operationalized, is expected to
overhaul company registration procedures that have been place in the past 50
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The new law stipulates, however, that the foreign companies
that want to establish branches in Kenya need to cede 30 percent ownership to
"We need foreign capital and expertise in order to
create employment opportunities," said Mohamed. "We will reform the
law so that we send the message to the international community that Kenya is a
safe investment destination."
The CS said that new law contains 1,000 new provisions that
will make it easier for companies to operate in Kenya. He noted that foreign
ownership of companies is only restricted in a few select industries such as in