Kenya Investment Corporation Requires Ksh5M Proof for Investment Certificates
Individuals in Kenya will be required to provide evidence of Ksh5 million before obtaining an investment certificate from the Kenya Investment Corporation.
This information is in line with the 2023 Investment Promotion and Facilitation Bill, which is presently in the phase of public participation.
In the context of establishing free trade within the East African Community (EAC) member states, investors hailing from EAC nations will be required to demonstrate a Ksh5 million investment commitment.
“An applicant shall be entitled to an investment certificate if the amount to be invested by a local investor is at least five million shillings or the equivalent in another currency,” the Bill states.
Investors from outside the East African Community (EAC) are required to invest a minimum of USD 500,000 or its equivalent in any currency.
At the current exchange rate, this is equivalent to Ksh81 million.
As per the legislation, investment is defined as the provision of capital, whether domestic or foreign, by an investor. This encompasses the establishment or procurement of business assets on behalf of a business enterprise.
A business established by Kenyan laws, with the majority of its shares owned by an individual who is a citizen of Kenya or a partner state in East Africa, will be considered local and eligible for the Ksh5 million investment requirement.
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In addition to providing evidence of a Ksh5 million investment, the investor is required to demonstrate how the business will generate employment opportunities for the people of Kenya.
Additional requirements for certificate approval involve providing evidence of Kenyans acquiring new skills or technology and making contributions to tax revenues or other government income.
Investors who are not part of the EAC (East African Community) will be required to contribute to the growth of foreign exchange, either by engaging in exports or participating in import substitution activities.
Furthermore, every investor must utilize raw materials, supplies, and services sourced domestically.
When granting the certificate, the incorporation of value addition in the processing of indigenous, organic, and agricultural resources will be an additional requirement to take into account.
“If the Corporation decides to issue an investment certificate it shall issue the certificate on the date the applicant requests,” the Bill dictates.
“The Corporation may revoke an investment certificate if it was issued based on incorrect information given by the applicant for the certificate or a condition of the investment certificate was breached.”
Kenya Investment Corporation Requires Ksh5M Proof for Investment Certificates
