|What is the procedure?||Start a business|
The first step is to register your company at the Companies Registry.
This involves conducting a name search, reserving the name, having an advocate draw up the memorandum and articles of association, and submitting the completed forms and documents (as stipulated on the registry website) along with payment onsite of stamp duty of 1 percent of nominal capital and of registration fee. If all documents have been submitted correctly, the certificate of incorporation will be issued within 5days.
If registering as a foreign company, the Registry will issue a certificate of compliance upon submission of company charter/memorandum duly notarized from the country of origin together with the company registration forms(236,237,238,250)
This is explained further on the registry website (see relevant institutions below).
*Name reservation can be done online using the E-Citizen Portal.
The Kenya Investment Authority (Keninvest) was established by the Investment Promotion Act, 2004; its purpose “to promote and facilitate investment by assisting investors in obtaining the licenses necessary to invest and by providing other assistance and incentives”. Its role is to promote and facilitate investment by:
Foreign investors must also obtain an investment certificate. This requires a minimum investment of US$100,000 and an explanation of how the potential investment will be beneficial to Kenya on the basis of criteria such as employment, skill upgrading, transfer of technology, foreign exchange generation, and tax revenue enhancement.
To apply for an investment certificate, you will need to submit the documents listed in the box below.
Keninvest is expected to make and communicate its decision regarding an investment certificate within 10 working days after receiving a complete application.
You will need to submit the application forms together with copies of:
Issuance of The Investment Certificate from KenInvest upon conforming to Health, Environment and Security requirements. Therefore, if an investor does not have an entry permit or if environmental impact assessment is required, these will need to be obtained before the KIA approves the investment certificate.
The holder of a certificate benefits from the initial issuance of any additional license required for their venture or operation – barring any special legal provision to the contrary, which Keninvest is required to check.
The licenses will be mentioned in the certificate. Until the licenses are actually issued by their issuing authorities, and for a maximum period of 12 months after the issuance of the certificate, the licenses are deemed to have been issued by virtue of the certificate, subject to the submission of appropriate applications and fees. This entitlement is only for the initial issue of licences, after which the laws under which they are normally issued apply as usual.
Another benefit of the investment certificate is that the holder is entitled to entry (work) permits for three members of the holder’s management or technical staff and three fellow-owners (or shareholders or partners). The permits are valid for two years and may be reissued to the same or different persons.
Because of the benefits, local investors may choose to apply for a certificate with a minimum investment of KES 1 million.
You will need to register to pay taxes, both corporate income and VAT, as well as for employer contributions to the National Social Security Fund and the National Hospital Insurance Fund.
This is explained further under the Labour and Taxes tabs.
You will need to register for a single business permit with your county authority.
If you are investing in a project that may have an environmental impact (detailed in the second schedule of the Environment, Management and Coordination Act 1998), you will need to obtain an environmental impact assessment license.
To do this, you will need to submit an environment impact assessment along with the accompanying forms, which are detailed on the National Environment Management Authority website (see relevant institutions). The report will need to be prepared by a NEMA-registered expert, of which details are also on the website.
On submitting the report to NEMA you will need to pay a fee of 0.1% of the cost of the project. If the documents have been correctly submitted and there are no further questions, processing time is between 45 and 90 days.
Decisions of NEMA can be appealed at the National Environment Tribunal.
The process of business registration was seen as relatively straightforward and online registration for taxes and social security is appreciated. Concerns were raised that when difficulties occurred, investors based outside Nairobi may need to travel there to resolve them.
The total population in Kenya was recorded at 41.8 million in 2013 from 8.1 million in 1960, changing 415 percent during the last 50 years.
|What is the procedure?||Register as an employer for the National Social Security Fund Register an employee for the National Social Security Fund Register as an employer for the National Health Insurance Fund Register an employee for the National Health Insurance Fund|
|Relevant documents||Kenya population Situation Analysis-2013|
|Relevant institutions||Kenya National Bureau of Statistics|
Kenya has the highest 15+ literacy rate in the region (90 percent). Schools are free. However, access to secondary education is governed by the primary school leaving exam. Priority is given according to score to national schools, then provincial and district schools. Harambee which are only government-subsidized but not free, accept students with lower scores.
There are 30 universities in Kenya. Of these, seven are public (Nairobi, Kenyatta, Moi, Egerton, Maseno, Jomo Kenyatta University of Agriculture and Technology, and Masindo Muliro University of Science and Technology).
Aside from public universities there are a number of private ones, which can be placed into three categories. There are chartered universities, which are fully accredited by the Commission for Higher Education. Then there are a number of universities, such as the Aga Khan University, which had been offering degrees prior to the establishment of the Commission for Higher Education. Finally, there are universities, which are authorized to operate with Letters of Interim Authority.
Parallel to the university system is the vocational post-secondary system. This includes national polytechnics, government training institutes, teacher training colleges and private institutions. They offer certificates, diplomas and higher national diplomas for two to three year courses, but may not offer degrees.
With its large expatriate population, Kenya is also well-served with international schools offering British and international curricula. There are 13 schools in Nairobi and others in Eldoret, Gigil, Kisumu, Mombasa, Nakuru, Thika and Turi.
Employment in Kenya is covered by the Employment Act 2007. This provides for four types of contracts:
An employee's probation period should not last longer than 6 months, though the employee can give consent to have it extended, up to a maximum duration of 1 year. (Section 9-10 of Employment Act, 2007).
Oral contracts are permissible if duration of employment is less than 3 months. Otherwise the contract should be in writing accompanied by a written statement of particulars provided to the employee at the start of employment. The written particulars of employment must be given to the worker within two months of the beginning of employment.
A contract can be terminated by an employer with prior notice as specified by law or compensation in lieu.
Upon the termination of employment contract an employee is entitled to pay for work done before termination and for annual leave not taken.
In addition, employees whose contracts are terminated on redundancy grounds are entitled to severance pay equivalent to 15 days’ salary per year worked at that employer.
Termination of employment on grounds of misconduct does not warrant severance pay.
Typical salary ranges applied by the private sector are listed in the table below.
For certain occupations, the government, as required by the Labour Institutions Act, 2007, publishes the Regulation of Wages Order, setting out minimum wages. Investors tend to add a premium of 20 percent to these.
|Senior manager||USD||1350 - 1680||2015||per month|
|Middle manager||USD||500 - 670||2015||per month|
|Graduate entry||USD||270 - 440||2015||per month|
|Skilled technician||USD||330||2015||per month|
|Shop assistant||USD||200 - 270||2015||per month|
|Office assistant||USD||170 - 200||2015||per month|
|Security guard||USD||115 - 126||2015||per month|
|Driver||USD||140 - 260||2015||per month|
|Unskilled labourer||USD||135||2015||per month|
Employers are required by the Employment Act (Section 34) to provide healthcare coverage for their employees. Membership of the the National Hospital Insurance Fund (NHIF), the primary provider of health insurance in Kenya, is mandatory. In addition to NHIF, which is a public facility, employers may also offer private medical insurance to their employees. Registration is done via the website (see relevant institutions below). Contributions to NHIF are deducted by the employer from an employee's salary and paid into the fund.
Both employers and employees are required to contribute to the National Social Security Fund. The Fund provides pension, invalidity and other social security benefits. Employers and employees contribute equally to the NSSF, as below.
|Category||Percentage of gross salary|
|Medical insurance (NHIF), employer contribution||0|
|Medical insurance (NHIF), employee contribution||Varying amount - see NHIF Act|
|Pension, employer contribution||6 (subject to a maximum of 2,160 KES)|
|Pension, employee contribution||6 (subject to a maximum of 2,160 KES)|
Termination indemnities in case of redundancy are stipulated in the table below. In case of redundancy, the Employment Act (2007) sets out the procedures to follow.
|Payment in lieu of notice (if employer decides)||One month|
|Payment per year worked||15 days|
|Relevant documents||Employment Act, 2007|
The Labour relations Act regulates employer-employee relations in Kenya. Approximately 40 percent of the labour force is affiliated to a trade union. The Central Organisation of Trade Unions (COTU) is the national umbrella body governing about 30 unions.
Kenya also has industrial courts to hear and settle industrial disputes. These are established in the Labour Institutions Act, 2007.
Investors and expatriates need an entry permit (work permit) to work in Kenya.
Foreign enterprises can obtain entry permits for expatriate employees who are key personnel such as managing directors, senior finance and marketing executives and highly specialized technical positions. In addition, entry permits are available for any category of skilled labour if Kenyans are not available demonstrated by showing that following the job being advertized, no suitable candidates applied.
Expatriate employees who plan to work for a duration of less than 3 months, such as to install equipment, train or do an internship, can obtain a special pass.
Foreign investors can also obtain entry permits for themselves if they have met the condition of the Investment Promotion Act 2004 which is to have registered the company in Kenya and to have invested a minimum of US$ 100,000.
East African investors still have to register for work permits but they do not incur any fee.
The Kenya Investment Authority works with the Immigration Department to facilitate the acquisition of entry permits, which can be obtained on arrival in Kenya if applied for beforehand.
Labour relations were judged to be good.
Difficulty in finding skilled workers and technicians were raised. University graduates were in plentiful supply.
Serious concerns were raised with regards to obtaining work permits for expatriate workers. Investors mentioned unexplained delays and difficulties for skilled workers who did not have academic degrees.
Electricity provision is focused on urban areas and relatively low in rural areas. Current total installed electricity generating capacity is 1,720 MW. However, electricity generation depends significantly on hydro-electric power. The government is keen to diversify to alternative sources of energy and to attract to attract investment in renewable energies and geothermal energy. Generation has grown steadily with both public and private sector investment, but with growth forecast at 7 % annually, remains an opportunity. Limited cross-border imports also take place with Uganda and the United Republic of Tanzania.
|450 Volts||KES||5.75 /Unit||2013||Fixed Charge= KES 800, Demand charge per KVA= KES 600|
|11,000 Volts||KES||4.75 /Unit||2013||Fixed Charge= KES 2500, Demand charge per KVA= KES 400|
|33,000 Volts||KES||4.49 /Unit||2013||Fixed Charge= KES 2900, Demand charge per KVA= KES 200|
|66,000 Volts||KES||4.25 /Unit||2013||Fixed Charge= KES 4200, Demand charge per KVA= KES 170|
|132,000 Volts||KES||4.10 /Unit||2013||Fixed Charge= KES 11,000, Demand charge per KVA= KES 170|
|What is the procedure?||Investor Power Plan|
|Relevant documents||Power to transform Kenya - 5000 MW by 2016 Feed-in tariffs policy, 2012 Renewables interactive map - Country profile Kenya, 2014 Scaling-up renewable energy programme (SREP) - Investment plan for Kenya|
Water is provided at the following average rate.
|Water||USD||0.46||2013||1 m3 industrial consumption|
Kenya’s telecommunications infrastructure has seen rapid growth. The country is now connected to four undersea fibre-optic cables (Seacom, TEAM System, LION and EASSY). Through a national backbone, this ensures broadband access to the main urban centres through fixed-line access and in certain locations, microwaves.
There are currently four mobile operators. These are Indian-owned Airtel and Yu, French- owned Orange (which took over the former national operator Telkom) and Safaricom, which is locally listed. All four mobile operators offer 3G access and some are trialling 4G.
By the end of 2014, the total number of mobile subscribers was predicted to be 33.2 million, a penetration rate of 79 percent.
The sector is regulated by the Communications Authority of Kenya, governed by the Kenya Information Communications Act, 2011 and the Kenya Information and Communications (Amendment) Act, 2013.
Development of the sector is overseen by the ICT Authority, which operates under the Ministry of Information and Communications. Its mandate includes among other objectives, promoting competitive ICT industries in Kenya and investment into such industries, developing capacities in the sector, including through working with academic institutions, and increasing access to all communities in the country. One of its flagship projects will be the creation of an ICT technology park (Konza Technology City), on the outskirts of Nairobi and in the vicinity of Jomo Kenyatta International Airport. Investors are being sought for this.
|Relevant documents||Information and Communications Act, 2011 Informations and Communications (Amendment) Act, 2013 Kenya National ICT Masterplan, 2014-2017|
Kenya currently leads in African connectivity with the highest bandwidth per person on the continent the fastest speeds, and some of the lowest internet costs.
Do we have a source for this?
The landing of the East African Submarine Cable System (EASSy), The East African Marine System (TEAMS), SEACOM and LION high-capacity submarine cables brought a 20-fold increase in international bandwidth in the country to 20Gbit per second. This is a result of government policy of increasing the number of carriers.
Kenya also has 13 licensed international gateways, according to the Internet Society. The localization of internet connections through the Kenya Internet Exchange Point (KIXP) allows local internet users to interconnect locally, without traffic being pointed back to the US or Europe.
|Internet||USD||48||2014||6 Mbps, Unlimited Data, Cable/ADSL|
The current road network comprises of variety of roads, ranging from forest to farm tracks to the multi-lane urban and suburban highways. The system is divided into classified and unclassified roads, with a total network of 177,800 kilometres of which 63,575 kilometres falls in the classified network.
It is presently estimated that about 70% (44,100 km) of the classified road network is in good condition and is maintainable while the remaining 30% (18,900 km) requires rehabilitation or reconstruction.
There are seven international trunk roads linking centres of international importance and crossing international boundaries or terminating at international ports.
Following a long period of neglect, the
Government is embarking on a large-scale
programme to upgrade the road network. Key
improvement of the Northern corridor which
connects the port of Mombasa, via Nairobi
with Uganda and beyond that, Rwanda,
Burundi and the Democratic Republic of
Congo. 368 km of road will be rehabilitated;
construction of the Nairobi-Thika multi-lane
highway to handle increased traffic on a busy
section of road between Kenya and Ethiopia;
anddevelopment of a new highway linking the
port of Lamu to South Sudan and Ethiopia,
taking in Garrisa, Isiolo, Mararal, Lodwar, and
Following a long period of neglect, the Government is embarking on a large-scale programme to upgrade the road network. Key features are:
improvement of the Northern corridor which connects the port of Mombasa, via Nairobi with Uganda and beyond that, Rwanda, Burundi and the Democratic Republic of Congo. 368 km of road will be rehabilitated;
construction of the Nairobi-Thika multi-lane highway to handle increased traffic on a busy section of road between Kenya and Ethiopia; anddevelopment of a new highway linking the port of Lamu to South Sudan and Ethiopia, taking in Garrisa, Isiolo, Mararal, Lodwar, and Lokicho
Kenya’s rail network, built a century ago, extends from Mombasa to Tororo on the Ugandan border via Nairobi. The same line continues in Uganda to Kampala with a branch to Pakwach. Kenya’s section of the line has the capacity to handle up to 7 million tons of cargo a year but actually handles only a third of this, and only six percent of total cargo on that route – most goes by road. As elsewhere in East Africa, railways in Kenya are in a dilapidated state. There is also a block-train freight service trunning from Mombasa to Kampala, as well as container-carrying trains daily between Kipevu (Mombasa) and the inland container depot at Embakasi (Nairobi).
In 2005, Kenyan and Ugandan railways jointly concessioned their operations to Rift Valley Railways, a South African-led consortium, for a period of 25 years. With a long-term loan of $165 million, the consortium has announced its intention to rehabilitate the network and rolling stock on the entire length of the line.
A number of long term infrastructure projects envisaged by the Government are examined in the Infrastructure section under the opportunities tab.
Below are average prices of transport in Kenya. The prices indicated will vary from the actual prices on the ground and are to be used only as an indicator
|Freight transport||USD||1400||2014||40' container from Mombasa port to main commercial city(Nairobi)|
Land in Kenya is classified by the Constitution into three types: public land, private land and community land.
Public land refers to land owned, used or occupied by the government or a state body. It includes government forests and game reserves. Public land is held in trust by county governments and administered by the National Land Commission.
Community land in Kenya is held by communities on the basis of ethnicity, culture or similar interest. It comprises land registered in the name of group representatives, transferred to a specific community and land held, managed or used by communities as community forests, grazing areas or shrines.
Private Land in Kenya consists of land held by a person under freehold tenure and leasehold tenure.
A non-citizen can only hold land on leasehold tenure, and the lease cannot exceed 99 years.
The Constitutions restricts foreign ownership of private land to leasehold for a maximum of 99 years.
To acquire public land, whether held by national or county government, a developer must apply to the National Land Commission, either directly, or through allocation auctions. Such land must be used for the purposes declared or else reverts back to government.
The acquisition or transfer or private land by freehold or leasehold must be registered with the local land registry in keeping with the Land Registration Act.
Indicative rental costs are displayed below.
The charges are exclusive of service charge and tax.
|Office space||USD||1.20 - 3.05||2014||In main commercial city, per m² per month|
|Warehouse||USD||0.3 - 0.5||2014||7.5 km from main commercial city, per m² per month|
|Furnished expatriate house||USD||1500 - 3000||2014||3-bedroom with garden, in main commercial city, per month|
|Unfurnished expatriate house||USD||900 - 1600||2014||3-bedroom with garden, in main commercial city, per month|
|What is the procedure?||Obtain a construction permit|
There are currently 50 EPZs in operation or development. Most are close to Mombasa or Nairobi and the largest is at Athi River, 25 km from Nairobi.
Investors in EPZs benefit from a range of fiscal incentives. These include a 10 year tax holiday followed by a 25 year flat tax for the next ten years; exemption from all withholding taxes during the first 10 years; exemption from import duties on machinery, raw materials, and inputs; exemption from stamp duty and from VAT on raw materials, machinery and other inputs.
However, investors must fulfill certain conditions when applying for a license (developer, producer, service or trader) to operate in an EPZ. At least 80 percent of production must be for export outside of the EAC. This needs to be justified by letters from potential buyers. In addition, anything sold locally, within 20 percent of output, must be approved by the Minister and will be taxed at the normal rate.
Plots in EPZs can be rented for up to 50 years. At Athi River, 1 hectare plots cost US$ 5,000 per annum or US$ 100,000 for 50 years. There is an additional 15 percent service charge and a US$ 1,000 annual license fee.
You can obtain a license of the Export Processing Zones Authority by submitting a project proposal and filling out the application forms. Once you have obtained the license you may register the company at the Companies Registry.
|Relevant institutions||Export Processing Zones Authority|
No concerns were raised with regards to obtaining land as commercially-usable land tends to be already categorized as private.
Concerns were raised with regards to the construction permit process where the 0.4 percent levy on total construction costs by the National Construction Authority was judged to be onerous. Concerns were also raised with regards to duplication between county and national levels in obtaining environmental impact approvals.
You must register your company at the Kenya Revenue Authority. This can be done online at their website (see relevant institutions).
The corporate tax year is based on the calendar year. However, companies may under Section 27 of the Income Tax Act and with prior approval of the Commissioner, vary their accounting year.
The rate differs between resident and non-residents (A resident company is one incorporated in Kenya.) Companies listed at the Nairobi Stock Exchange are taxed at slightly lower rates than other companies.
Expenses allowable as deductibles include: legal cost expenses, incidental expenses relating to authorization and issue of shares, debentures or similar securities offered for purchase by the public and expenses incurred for the purposes of listing on any securities exchange operating in Kenya (without raising additional capital.)
|Tax||Resident rate||Non-resident rate|
|Interest: Government bearers bonds||15%||15%|
|Interest: Bearer bonds with 10 year and above maturity||10%||25%|
|Interest: Other bearer instruments||25%||25%|
|Withholding taxes: Dividends||5%||10%|
|Withholding taxes: Management, technical or professional fees||5%||20%|
|Withholding taxes: Royalties||5%||20%|
|Capital deduction for investment in buildings and machinery for manufacturing and hotels, in Mombasa, Nairobi and Kisumu||100%||--|
|Capital deduction for investment in buildings and machinery for manufacturing and hotels, elsewhere||150%||--|
|Investors in EPZs not engaging in local commercial activities||10 year tax holiday, then 25% for next ten years|
|Capital gains from transfer of property (currently suspended)|
Registration for VAT can be done online at the Kenya Revenue Authority website.
Registration is compulsory where the annual turnover is expected to be KES 5 million and more.
The normal rate of VAT is 16 percent. Certain list of fuel and oils are exempt from the commencement of the VAT Act on September 2013 for a maximum of 3 years before been standard rated. Food products are generally exempt as are a number of services. Goods and services that are exported or supplied to specified privileged persons/ organizations (such as projects in international organizations) are zero-rated.There is also a list of zero-rated goods linked to basic foodstuffs, medical products and machinery.
More details available in the VAT Act 2013.
Excise taxes are imposed under the Customs and Excise Act (Chapter 472), and are levied on alcoholic beverages, tobacco products, petroleum products, motor vehicles, carbonated drinks and mineral water, cosmetics, jewellery and cell phone airtime. Sample rates are listed below
|Fruit juices||7 %|
|Beer||65 KES per litre|
|Tobacco products||130 %|
|Gas oil||10,305 KES per 1,000 litres|
|Diesel oil||3,700 KES per 1,000 litres|
|Motor vehicles||20 %|
As a member of the East African Community (EAC) customs union, all goods manufactured in one EAC country and sold in another and which meet rules of origin criteria are treated as if they were manufactured locally, by virtue of there being no internal tariffs between partner countries.
If you invest in export processing zones you will be exempted from paying import duties.The full schedule of tariffs is available in the EAC Common External Tariff Handbook below.
|Raw materials||0 %|
|Intermediate goods||10 %|
|Finished goods||25 %|
It is levied on income from business, employment, rent, dividends, interest and pensions, among others and paid by any person residing and working in Kenya. Pay As You Earn (PAYE) is the method of collection for individuals in gainful employment.
As an employer, you will need to withhold personal income tax from your employees under pay as you earn (PAYE). If you are self-employed, you must declare and pay your own PAYE on a monthly basis. A foreign employee of a non-Kenyan firm who is resident in Kenya is subject to tax on all emoluments.
Kenya Revenue Authority issues taxpayers with a Tax registration Certificate after successful registration. Tax returns can be filed online.
|On the first KES 121, 968||10 percent|
|On the next KES 114,912||15 percent|
|On the next KES 114,912||20 percent|
|On the next KES 114,912||25 percent|
|On all income over KES 466,704||30 percent|
|Canada||Income and capital|
|Denmark||Income and capital|
|France||Air and sea transport|
|Germany||Income and capital|
|India||Income and capital|
|Italy||Income and capital|
|Norway||Income and capital|
|Sweden||Income and capital|
|United Kingdom||Income and capital|
|Zambia||Income and capital|
Investor feedback indicated that experience with tax authorities and customs depended on using good quality accountants, auditors and freight forwarders.
Concerns were raised in the hospitality sector that the various exemptions granted were not immediately honoured by customs.
The Government of Kenya has put in place a number of legal and treaty measures to provide protection for your investment.
The Constitution of Kenya guarantees protection of private property. At the same time, the Foreign Investment Protection Act guarantees against expropriation of private property by government. However, private property may be expropriated where it is in the public interest and where due process is followed. In such cases adequate and prompt compensation must be provided. This is detailed in the Land Act.
Kenya is a signatory to and member of the Multilateral Investment Guarantee Agency (MIGA), an affiliate of the World Bank, which insures investors against loss of Investment to political problems in host countries.
Further measures are provided by various bilateral agreements with other countries (further below).
A foreign investment certificate may be revoked:
In all cases, the holder of the certificate shall receive written notice of the KIA’s intention to revoke it and shall be provided the opportunity to make representations. In practice, the KIA has rarely revoked licenses. It normally relies on counselling to achieve the desired corrective action.
No foreign exchange controls currently exist. Both residents and nonresidents may open foreign-currency accounts with domestic banks. No person except authorized dealers is allowed to engage in the foreign exchange business, except where the Central Bank permits a specific person or class of persons to do so, subject to the conditions it may impose.
|Relevant institutions||Central Bank of Kenya|
|Relevant documents||Arbitration Act 1995 Foreign Judgements Reciprocal Enforcement Act 1984|
Bilateral investment agreements are currently in force with the following countries:
Germany (entered into force in 2000)
Italy (entered into force in 1999)
Netherlands (entered into force in 1979)
Switzerland (entered into force in 2009)
United Kingdom (entered into force in 1999)
Kenya has laws to register and enforce intellectual property rights, being a member of the World Intellectual Property Organization (WIPO) and its various conventions and protocols, as well as the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the African Regional Industrial Property Organization. Foreign investors also benefit from the same rights as local investors.
The Kenya Industrial Property Institute (KIPI) considers applications for and grants industrial property rights. Foreign applicants are entitled to right of priority and for international filing. Other Kenyan organizations include the Kenya Copyright Board (KECOBO), the Kenya Plant Health Inspectorate Service (KEPHIS), which among other things, protects new seed and plant varieties, and the Anti-Counterfeit Agency (ACA).
Kenya’s Trade Mark Act (1957, last amended in 2009) allows trademark infringement to be fined up to KES 5,000. In the area of patents, the Industrial Property Act (2001) provides for civil proceedings in case of non-intentional patent infringement, with remedies in the form of injunctions, damages and compensation. In the case of intentional patent infringement it mandates criminal proceedings, with penalties that include a fine and up to five years in prison; going beyond minimum standards required by Kenya’s international obligations. Border measures including anti-counterfeit measures are addressed under the Anti-counterfeit Act (2008).
Kenya has taken a liberal stance in regard to competition and price setting, with market forces being allowed to determine who enters or exits a given business and what prices are to be charged.
Safeguarding competition in the Kenyan economy is the role of the Competition Authority of Kenya, established by the Competition Act, 2010.
Of particular interest to foreign investors are its guidelines on merger thresholds and public interest tests, below.
|Relevant documents||Competition Act, 2010 Guidlines on public interest test in merger determinations Guidelines on exclusion of proposed mergers from Part IV of the Competition Act|
|Relevant institutions||Competition Authority of Kenya|
The overall impression among investors was that the government was investor-friendly and that no attempts were made to retrieve private property.
Kenya is signatory to a number of multilateral and bilateral trade agreements as part of its trade policy. Kenya is a member of the World Trade Organization (WTO) making her products access more than 90% of world markets at Most Favoured Nation (MFN) treatment.
In addition, Kenya is member to several trade arrangements and beneficiary to trade-enhancing schemes. Kenya is a member of the East African Community (EAC) comprising Kenya, Uganda and Tanzania with a population of more than 80 million people.
Kenya is also a member of the Common Market for Eastern and Southern Africa (COMESA) with a population of about 400 million people.
The East African Community (EAC) comprises Burundi, Kenya, Rwanda, Tanzania and Uganda. Its membership means being part of a single market with a population of 138 million and a GDP of $82.1 billion.
As a member of the EAC single market, all goods manufactured in one EAC country and sold in another are treated as if they were manufactured locally, by virtue of there being no internal tariffs between partner countries. Non-tariff barriers to trade are also being removed. The same countries also levy a common external tariff for goods entering the EAC, with the aim of promoting manufacturing and the processing of raw materials. Under this scheme, raw materials are imported duty free, intermediate goods are charged 10 percent and finished goods 25 percent.
Future steps being considered include a monetary union and a political federation. Expansion is also being considered. In 2011 South Sudan, with its petroleum industry, applied to join, at the invitation of Kenya and Rwanda. DRC, with its vast mineral reserves has observer status.
|Relevant documents||EAC map (UN cartography)|
COMESA forms a major market place in Africa bringing together as it does 19 member states covering a total population of 444 million. A Free Trade Area (FTA) was created in 2000 and now encompasses 15 of the 19 member states (all but Democratic Republic of the Congo, Eritrea, Ethiopia and Seychelles). A customs union is planned in the close future with the eventual elimination of quantitative and non-tariff barriers for goods originating from within the region. Common external tariffs are also foreseen. Given the technical and legal challenges posed by a number of countries being both members of COMESA and the EAC single market, it is likely that the conditions of the COMESA union will be harmonized with that of EAC.
Its member countries are: Burundi, Comoros, Democratic Republic of the Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, Zimbabwe.
Under European Union's Everything But Arms Initiative (EBA), least developed countries (LDCs) enjoy duty-free access to the EU market for all products except arms and ammunition. Sugar and other processed foods are permitted.
Under the African Growth and Opportunity Act (AGOA) Sub-Saharan African countries benefit from duty-free access to the United States for an additional range of 1,800 products that are excluded from the Generalized system of preferences. These include most textiles and apparel; watches; and most footwear, handbags, and luggage products. With regards to apparels, the textiles and yarns must in general originate from Sub-Saharan African countries or the United States.
The implementation of the 2010 constitution has led to the devolution of significant powers to Kenya’s x counties. This has led to the construction of new country government offices and displacement of civil servants and spending power from Nairobi to county capitals, with the attendant impact on local economies. The devolution of development funds to county budgets has also led to an increase in road and other construction at the county level. This has led to significant opportunities in construction and property development in the counties.
Kenya currently has an installed power generation capacity of 1,330 MW. Eighty percent of that is produced by KenGen, a stateowned company, which derives 65 percent of its power from hydroelectric sources. Thirty percent of its power is obtained from seven dams on the Tana River.
Thus not only is the country’s power generation susceptible to climatic conditions, but with peak electricity demand currently at 1,191 MW and growing at seven percent a year, power outages during dry periods are frequent.
This gap is partly addressed through diesel generation. KenGen has an emergency power producer agreement with Aggreko for 290 MW. Separately, many businesses also own standby generators. Aware of the environmental and financial cost, the Government is encouraging the production of energy from renewable sources and has implemented a policy of feed-in tariffs to support this.
Chief among the energies being promoted, although not subject to a feed-in tariff, is geothermal power, for which there is an estimated capacity in the Rift Valley of between 3,000 and 5,000 MW, and which, since 1957, has already proved itself as a source of energy, albeit at a current output of 202 MW. To this end, the Government created the Geothermal Development Company. Its role is to prospect and develop blocks and then sell exploitation licenses to investors to develop steam turbine power generation plants. The first project consisted of 25 wells drilled in the Ol Karia field, which yielded 196 MW. The second project, currently underway is Menegai Phase 1 and consists of four blocks with an estimated capacity of 400 MW. GDC is mapping these blocks by drilling 120 wells. With further development, GDC estimates that the Menegai field could yield 1,250 MW. Overall, GDC hopes to produce 2,000 MW of steam and is seeking total investment of US$10 billion, of which it has already obtained a significant amount. Other geothermal projects include one by KenGen for 280 MW.
In addition to geothermal energy, the Government is keen to encourage wind power generation and several projects have been announced. This includes a 300 MW average capacity wind farm of 353 turbines on Lake Turkana (by Lake Turkana Wind Power), and a 60 MW wind power project on the Kinangop Plateau (by Aeolus Kenya).
Other sources being encouraged are solar, biomass and small hydro plants.
Investment Opportunities In the Energy Sector
|What is the procedure?|
|Relevant documents||Scaling-up renewable energy programme (SREP) - Investment plan for Kenya|
Kenya is endowed with vast geothermal potential estimated at between 7,000 and 10,000 MW. It is currently Africa's largest geothermal producer with 210 MW of capacity. Recent discoveries include a commercially exploitable geothermal seam in Menengai. The Kenyan Government has recently initiated the Scaling-up Renewable Energy Program (SREP) investment plan in line with its national renewable energy development strategy.
Kenya offers fine natural attractions, combined with a network of hotels and game lodges that give visitors good value for their money. With its national parks, game reserves, marine parks, biosphere reserves, archaeological sites and pearly beaches, Kenya remains a natural tourism magnet. The most popular tourist attractions in Kenya are the wildlife and beaches. Others include museums, snake parks and historical sites.
However, many of these resources remain largely unexploited. Kenya currently receives about one million visitors a year, which is around half the number visiting South Africa. The main markets for Kenyan tourism in descending order of visitor numbers are the UK (who travel mainly by scheduled flights), the US, Italy, Germany, (of which the latter two mainly travel on charter flights to Mombasa), France and India. Emerging markets are growing in importance and the Kenya Tourist Board is focusing on them as well as Australia.
Focus is also growing on domestic tourism, which currently fills 35 percent of bed capacity and which ensures greater value-added for local operators. Regional markets are also growing in importance. For example, Uganda is a market for medical tourism while South Africans visit Kenya in search of a safer and more authentic experience. The further development of the domestic and regional market will provide an effective bulwark against any slump or disruption in the international market so as to depart from a past image of low cost beach tourism.
At the same time, Kenya is trying to diversify the offer both within the traditional beach and safari products as well as to new sectors. This is called the Brand Kenya initiative. The authorities are also keen to make use of EAC integration by promoting regional circuits. One area is in meetings, incentives, conferencing and exhibitions (MICE), which Kenya is well positioned for given its position as an African commercial and transport hub. It is estimated that such delegates spend an average of US$ 400 per stay, helping maintain an occupancy rate in Nairobi of 80 percent. This sector is currently focused on the Kenya International Conference Centre (KICC).
However, KICC is in need of renovation and with competition on the continent restricted to Cape Town, Cairo and Marrakesh, and a new 3,000-seat capacity conference centre built in Kigali, there is likely to be plenty of demand for new conference centres for which the Government is seeking investors in the towns of Mombasa or Kisumu.
The Government is also looking to tap into the growing sports and adventure tourism market. One proposal is to exploit Kenya’s athletic reputation to develop high altitude training camps. Hiking can also be further developed around Mount Kenya as can other activities such as white water rafting, game fishing, and kite surfing. The Government is also keen to increase the provision of golf courses in the country, of which there are currently 45.
All these activities also require the provision of accommodation. New areas that the Government is keen to develop are the Western circuit, the Northern circuit and new coastal resorts. The Western circuit comprises Mount Elgon, the second highest in Kenya, Ruma National Park, which is famed for its rare species of antelope, Lake Baringo, and the area around Lake Victoria. The Northern circuit takes in a more arid landscape and comprises Lake Turkana, Kenya’s second largest lake, the Tana River Basin and the North Eastern Province. New coastal areas include Lamu in the North and Shimoni on the border with the United Republic of Tanzania. Major resort developments are also taking place in Watamu and Kilifi, which are both North of Mombasa in an area famed for the quality of its beaches. Currently the largest investors in tourism are local private companies, such as Serena and Sarova, and the Kenyan Government. Smaller lodges tend to be owned by investors from the UK as well as from Kenya.
In order to encourage further investment, the Kenya Tourism Development Corporation (KTDC) can provide concessional funding, typically a US$ 500,000 loan on a US$ 3-4 million investment. KTDC can also facilitate land acquisition. Hotel and restaurant licenses as well as a tour operator’s licenses are delivered by the Ministry of Tourism. Six-monthly health inspections are conducted by the local authority and the fire department is in charge of delivering fire safety certificates. With regards to land use, this must be approved by the local authority or the Kenya Wildlife Service if the facility is a game park.
Nevertheless, a number of challenges remain for the sector. Among these is security. While crime may have decreased, the effects of instability in neighbouring Somalia is being felt close to the border. With regards to promoting regional tourism circuits on a wider basis, the absence of a single visitor’s visa for the EAC, and by extension a single visa fee instead of multiple ones, will discourage a more seamless integration.Investment Opportunities in Tourism
The Serena hotels and lodges are distinguished by the quality of their service and their attention to local tradition in architecture and decor. With roots in Kenya, Serena Hotels now operates throughout the Eastern African region as well as in Afghanistan, Mozambique, Pakistan and Tajikistan.
While it owns seven properties in Kenya (Nairobi, Mombasa, Amboseli and Mara, among others), it also owns eight properties in the United Republic of Tanzania (Lake Manyara, Ngorongoro, Serengeti and elsewhere), two in Uganda (Kampala and Lweeza), one in Burundi (Bujumbura) and two in Rwanda (Kigali and Gisenyi). The latter is now the scene of considerable expansion with plans to eventually expand to seven properties.
In seeking out new properties, Serena tends to focus on locations that have been bypassed by other business or luxury chains. Serena Hotels employs 1,200 staff in Kenya. Recognizing them as its greatest single asset it places much emphasis on employing local staff, providing extensive training, rotating them around its properties and promoting from within.
The Serena chain in Africa is the brand name of Tourism Promotion Services Eastern Africa Limited. TPSEAL has operated in Kenya since 1971 and floated nearly 39 million shares on the Nairobi Stock Exchange in 1997. The shares, then valued at KShs 13 each, now trade at KShs 57 each. TPSEAL owned 37 percent by the Aga Khan Fund for Economic Development (AKFED), which is incorporated as a commercial entity under Swiss law. AKFED, founded in 1984, is the only for-profit entity in the Aga Khan Development Network (AKDN), also based in Switzerland, and sees its aim as going beyond profits to encompass employment creation, human resource development, and the preservation of natural and cultural assets. AKDN has a history in East Africa going back to the late nineteenth century.
The installation of a broadband backbone connected to three undersea fibre-optic cables (Seacom, TEAM System and EASSY) has significantly improved Kenya’s connectivity and prospects for the ICT sector, be it in business process outsourcing (BPO) or the development of IT-enabled services (ITeS).
The main operators in this sector are Technobrain (BPO and ITeS), Direct Channel (BPO and ITeS), Kencall (callcentre), Horizon (callcentre), Adept Systems (BPO), A24 (content provider), Craft Silicon (software developer for banks), Spanco (BPO servicing Airtel), and IBM (servicing Airtel). A number of Kenyan companies also have inhouse divisions. Further, regional offices have been set up by Microsoft, Google, Cisco, Oracle, IBM and SAP.
Currently, the sector is focused on the local market, providing services to banks, insurance, cable and telecommunications, power, water and other utilities. The size of this market is estimated at US$ 500 million and it is of note that companies such as Spanco, followed Airtel into Kenya to continue servicing them. However, in the medium term, it is expected to expand into the region both on its own account, given its relative sophistication compared to neighbouring markets, and in order to service its clients’ expansion plans into the EAC and beyond.
However, Kenya has yet to use its assets in terms of human resources, English language and European time zone to make a significant impact on the world market. A reason given for this is the increasing sophistication and scale of required to compete at the global level or rival established centres such as India. Call centres, for example, are now required to deal with the total customer experience, which includes getting new customers, processing and analyzing data, verifying inventory and credit, identifying customers to whom to market new products and selling these, and data mining. In addition, this requires the technical capacity to integrate themselves into different companies’ databases and systems, a capacity which companies in Kenya are only now achieving.
The Government has been an important driver in the sector. In 2010, the Ministry of Information and Communications, with support from the World Bank, established the Kenya ICT Board. Its role is to implement Government policy in this area through developing infrastructure and capacity. Important projects supported by the Board include the development of a technology park located near Jomo Kenyatta International Airport. Called Konza City, it will provide land and facilities for BPO and ITeS. It is also intended that it feature a science park, operated by the University of Nairobi, a financial district, conference facilities, schooling and accommodation. The Board is still open on how to develop it and is interested in working with investors.
Other parks that might be developed by private investors are Tatu City, to the North of Nairobi and Eldoret City. The Board is also undertaking other important initiatives that will create demand in the sector and spur further development. These include:
Investment Opportunities in ICT
Launched in July 2011 by the Ministry of Information and Communications, the Kenya Open Government Data Portal makes freely available online core government development, demographic, statistical and expenditure data that can be drilled down, where relevant, to the province or county level.
It is aimed at researchers, policymakers, ICT developers and the general public. The Government expects that Opendata will have three main benefits.
Firstly, the availability of information should provide an economic benefit in better identifying how savings and efficiencies can be made, and how service delivery can be improved.
Secondly, it equips parliamentarians, policy makers, civil society and individuals with the data they need to analyze and make informed decisions.
Thirdly, it is expected to contribute to transparency and accountability in providing detailed and timely information on the operations of government.
Opendata currently carries 160 datasets from different government departments. This includes the 2009 census, national budget data, nation and county public expenditure data, information on health care and school facilities. Other examples include soil maps, which could be of use to farmers. The raw data is also available for download so technical users and developers can analyze data and use it to build applications for the web and mobile.
Kenya envisages a massive upgrading and extension of the country's infrastructure. In this regard, the country has highlighed a number of infrastructure projects that present significant opportunities for investors in the coming years.
It is important to note that while the Government has put forward plans on how it would like to develop infrastructure, it is equally open to ideas and proposals from potential investors.
Investment Opportunities in Infrastructure include:
The Northern Corridor comprises the road and rail network between the port of Mombasa and Tororo on the Ugandan border, taking in along the way, Nairobi and Kisumu. It is important transit route to the Great Lakes region (Burundi, D. R. Congo, Rwanda and Uganda) as well as the Northern areas of the United Republic of Tanzania.
The corridor handles about 40 million tonnes of cargo annually including agricultural goods, cement, coffee, dairy products, fluospar, grains, paper, petroleum products, salt, soda ash, sugar and timber.
With only six percent of cargo travelling by rail, investment is already taking place in rehabilitating the Kenya Uganda Railways under the private concession Rift Valley Railways.
However, investment is still sought for the development of a commuter railways system around Nairobi (population 3.13 million) to allay the city’s growing traffic problems. This will involve the rehabilitation of approximately 160 km of the existing rail system within the Greater Nairobi area and the construction of a spur to Jomo Kenyatta International Airport, as well as the rehabilitation and construction of new stations.
Plans are also being made to build a standard gauge line to replace the current Kenya-Uganda railway. Parallel to the railways, the plan also envisages the rehabilitation of 368 km of road and the possibility of toll-paying dual carriageways, and the development of inland container ports to facilitate distribution and logistics.
The lack of capacity at the port of Mombasa and the creation of South Sudan and its strategic orientation towards Kenya has given new impetus to the development of a transport corridor from Lamu to Juba and Ethiopia.
This corridor would be composed of several elements:
The Government is keen to attract investment into these projects and envisages either direct investment or public-private partnerships.
It should be noted that the corridor and consequent transport infrastructure could enable further investment opportunities in agriculture. Twenty four million hectares of land along the corridor could be used for livestock production. Furthermore, 9.2 million hectares have potential for crop production if irrigated from the Tana Delta and Athi and Tana rivers.
The EPZ Act was passed in 1990 and created the Export Processing Zones Authority (EPZA) as the regulatory body.
Most EPZs are close to Nairobi or Mombasa, with the largest at Athi River, 25 kilometres from Nairobi.
It should be noted that operations such as horticultural farms can also be designated EPZs. The largest single investment by a company in an EPZ has been De La Rue in security and printing (US$ 48 million).
Investors in EPZs benefit from a range of fiscal incentives. These include a 10 years tax holiday followed by a 25 percent flat tax for the next 10 years; exemption from all withholding taxes during the first 10 years; exemption from import duties on machinery, raw materials, and inputs; no restrictions on management or technical arrangements; and exemption from stamp duty and from the VAT on raw materials, machinery and other inputs. However, investors must fulfill certain conditions when applying for a license (developer, producer, service or trader) to operate in an EPZ.
At least 80 percent of production must be for export. This needs to be justified by letters from potential buyers. In addition, anything sold locally, within 20 percent of output, must be approved by the Minister and will be taxed at the normal rate.
Plots in EPZs can be bought on 50 year lease or rented. At Athi River, 1 hectare plots cost US$ 5,000 per annum or US$ 100,000 for 50 years. There is an additional 15 percent service charge and a US$ 1,000 annual license fee.
Main foreign sources of EPZ investment are from China, Taiwan Province of China and India. The African Growth and Opportunity Act (AGOA) has brought in a large number of investors in the garment sector, although there is uncertainty over the duration of the third country provision.
In addition, the expansion of the EAC customs union has restricted the usefulness of EPZs as a platform for exporting to the region. To this end, the Government is looking at moving towards Special Economic Zones of the type present elsewhere in Africa under which investors can have access to quality infrastructure to produce both for the local and foreign markets.
At the same time, the removal of offshore status make it easier for investors to source from Kenyan suppliers, thus creating backward linkages into the local economy.
This sector is mainly agro based at the moment and plays an important role in adding value to agricultural output by providing forward and backward linkages with agricultural sector. However, there is a shift to export oriented manufacturing as the main thrust of Kenya's industrial policy since the country aims to raise the share of products in the regional market from 7% to 15 % and develop niche products for existing and new markets.
Kenya is promoting development of Special Economic Zones (SEZs), Industrial Parks, Industrial Clusters, promotion of small and medium scale manufacturing firms, development of niche products, commercialization of research and development results.
Investment opportunities in Manufacturing
With a combination of active government support, favourable agro-climatic conditions (22°C-30°C in the day, 6°C-12°C at night and 60-80 days of rain), availability of low-cost farm workers and the know-how, reach and financial weight of foreign investors, matched by the year-round demand for certain vegetables in international markets, and direct air connections to Europe, horticulture has emerged as one of the country’s fastest growing sectors within agriculture, making Kenya a major exporter in this field. Horticulture production is divided into fruits and vegetables on the one hand, and cut flowers on the other.
Fruits and vegetables
Participation by foreign investors (mainly Dutch and British) in the growing, processing and export of fruits and vegetables has been significant and has helped secure market access and raise quality, both to meet EU sanitary and phytosanitary standards and additional ones, for example those set by the British Retail Consortium. The most common vegetables are fresh beans (French beans, fine beans and dwarf beans), fresh peas (mange tout, sugar snap and garden peas), brussels sprouts, broccoli, courgettes, and baby carrots.
There has been a cut flower industry in Kenya since the 1980s. However, it is only since the 1990s that foreign investment has enabled the industry to acquire new technologies, upgrade quality control and improve infrastructure. Principal flowers exported from Kenya are roses, spray and standard carnations, statice, alstromeria, lilies and hypericum. Peak periods for this sector include Valentines Day, UK and European Mother’s Days, Easter, St Nicholas, Christmas and France for New Year’s Eve.
The floriculture industry, located for the most part on the shores of Lake Naivasha, but present in a number of areas through the Rift Valley and Mount.Kenya region, is vertically integrated, depending to a large extent on outgrower arrangements (more so than fruits and vegetables). Small cut flower farms in Kenya produce and sell their flowers to larger local Kenyan or foreign companies, which control, grade, bunch and export the flowers via cold storage facilities at Jomo Kenyatta International Airport in Nairobi. The industry employs 2 million people, or 7 percent of the population, directly and indirectly.
In response to requirements introduced by buyers in international markets with regards to standards of environmental management, product and food safety, quality, traceability, and the occupational health and safety of workers, the two main horticultural producer groups, the Fresh Produce Exporters Association of Kenya and the Kenya Flower Council have both launched codes of practice, which are benchmarked to the international Global-GAP (good agricultural practice) initiative. Fruit and vegetable producers are certified under Kenya- GAP, while cut flower producers are certified under the Kenya Flower Council’s code of practice
Oserian was established in 1969 as a five hectare family-owned farm producing white and green asparagus. It also incorporated an agrochemical business, later sold to Bauer Ltd. In 1982, the company diversified into cut flowers, starting with statis, which it exported to the Netherlands. At the time, it was the first flower farm in Africa. Since then it has grown to be, at 256 hectares, the largest single farm in Kenya, producing an average of one million stems a day. Flower varieties include carnations, lisianthus, flox, rascus, snap dragon, solidago, sunflower, and spray roses.
Flowers are picked every day between 5 a.m. and 6 a.m., are packed by 9 a.m. and are at Jomo Kenyatta International Airport by noon where they are placed in cold storage. At 11 p.m. they are loaded onto cargo flights and are in a depot in Rotterdam at 11 a.m. the next day. Twenty fours later they are at supermarket warehouses across Europe, and 60 hours after picking are on the supermarket shelf.
Oserian’s strategy hasn’t just focused on growing its operations in Kenya. It also set up its own auction house in the Netherlands, now sold, called Teleflora, specifically for imported flowers. The auction house was complemented by marketing arms in the UK and mainland Europe, enabling Oserian to directly supply UK supermarkets.
Over the years it has had to overcome a number of challenges. These have included initially high freight costs, clearances for EU sanitary and phytosanitary standards, and the high quality requirements of EU customers. In 1985 the Government of the Netherlands banned Kenyan flower imports, though this was short-lived.
The company has invested significantly in research and development. It is now producing scented roses with a guaranteed seven-day shelf-life, and in partnership with the Kenyatta Agricultural Research Institute is working on new varieties of strawberries with taste colour and sweetness for the local market, as well as disease resistant yam, cassava, sorghum and millet. It is also examining natural remedies to avoid pesticides. The farm is certified Fairtrade, Max Havelaar, Leaf, Kenya Flower Council and Global Gap.
Oserian has placed great emphasis on its social and environmental commitments. All staff are housed or provided with allowances. Medicine, transport and work gear are provided as is severance pay, funeral allowances. An onsite vocational training centre offers courses in driving, computing, carpentry and other subjects, enabling staff to move to higher paying posts. Furthermore, all energy needs are provided onsite through two geothermal plants.
The Kenya Investment Authority has published a list of investor-ready projects. Please see below.
|Relevant documents||Investor Ready Projects|
|Relevant institutions||Kenya Investment Authority|
|Official name||Republic of Kenya|
|Country area||581,309 km2|
|Local currency||Kenya Shilling,KSh||Code: KES|
|Other national language(s)|
|GDP per capita||943 USd|
SC is located on the Indian Ocean coast close to the border with Tanzania. It benefits from significant international transit trade, a small port and an international airport.
Conscious of its location, the county government has put in place a new public-private partnership framework with the aim of attracting investment into public infrastructure.
This is complemented by an industrialization policy, providing a number of incentives for manufacturing firms who wish to make use of the Kenya-Tanzania transit corridor. This has been developed in view of the finalization of the new SEZ.
The County has created a corporation in order to own and operate assets on behalf of the county, including in partnership with the private sector.
Charter of the corporation
In view of its location the SC county offers the following opportunities:
Investment Sector profile: Manufacturing
Investment Sector profile: Transport
Investment Sector profile: Port services
In addition to national registration and investment licensing requirements (see Getting Started tab) investors are required to register at the Department of Investment, where they will obtain a county business licence.
Institution: Department of investment
Businesses in SC county are subject to the following levies.
|Category||Amount of percentage|
|Sugar tax permit||KSH 10,000|
|Billboard permit||KSH 5,000|
|Land rates||1 percent of value|
|Single business permit||KSH 50,000|
Investors may lease land from SC County subject to the terms of its land regulations. These allow leases of 99 years that are renewable.
|tax rate (case No.1)|
Nyeri County is one of the 47 counties in Kenya and is located in the central region of the country. It covers an area of 3,337.2 Km2 and is situated between longitudes 36038” east and 37020”east and between the equator and latitude 00 380 south. It borders Laikipia County to the north, Kirinyaga County to the east, Murang’a County to the south, Nyandarua County to the west and Meru County to the northeast.
In a concerted effort to create a conducive investment climate in Nyeri, the County has rolled out interactive Nyeri County Investment Portal to facilitate investments in key economic sectors which has made it globally competitive destination for investment.
Competitive investment opportunities exist in agribusiness including the following areas: processing and value addition of Vegetables, Avocado, Macadamia, Coffee and tea. There also exist opportunities in livestock products including Dairy/milk, Meat and fish, and Water purification and packaging. The county has made major investment in market infrastructure including Karatia retail market and Chaka wholesale hub to provide market for local and international investors.
Proximity to Kenya’s two major water towers –Mount Kenya and Abaderes makes the county one of the most attractive destinations over the world. There also exists historical sites such Mau Mau caves, Lord Baden-Powell Gravesite Memorial. Establishment of Wildlife corridors for tourism attractions and tour guide organizations is also a major investment area. Cottages and Home stays. The above factors provide opportunity for tourism based investments including hospitality, tourism sites and mountain climbing.
The county has created an investment corporation which provides infrastructure for investment promotion and provided conductive investment climate including e-Business permit and competitive tax regime for investment
|tax rate (case No.1)|
Kisumu County is one of the new devolved counties of Kenya. Its borders follow those of the original Kisumu District, one of the former administrative districts of the former Nyanza Province in western Kenya. Its headquarters is Kisumu City. The County has an area of 805 mi²
The population of the county is estimated at 968,879 (2009, census). The county has seven(7) sub-counties namely Kisumu West, Kisumu Central, Kisumu East, Seme, Muhoroni, Nyando and Nyakach.
Conscious of its strategic location as the gateway for the East African community with lake Victoria providing an opportunity for lake transport, the county government has put in place various strategies to market Kisumu as a suitable investment location and to provide a conducive environment for business and trade. The county has an new international airport and serves as the business hub for East and Central African .
Some of the measures being taken include the development of suitable policies and strategies to facilitate investment. They include the development of industrialization policy which is in its final stage of completion, the Enterprise development policy to facilitate the development of the SME sector, the revision of the CIDP 2013-17 to 2018-2022 and the establishment of the e-trade and business licencing
With devolution the county has recently upgraded its infrastructure and now has good road both network within the city and its rural areas. In collaboration with the National government the county has established the street lights within the city and the Estates which has drastically improved the security within the county.
With Kisumu identified in the Vision 2030 as one of the SEZs and a destination for the SGR and a new sea port, the county is strategically preparing itself to avail land for the SEZ and trying to identify investors for desilting of the lake to facilitate lake transport to connect with the east African counties
|Single business permit|
|Change of user|
|public health certificate|
|Relevant documents||County Finance Act 2017|
Uasin Gishu County borders Kericho County to the south, Nandi to the south west, Bungoma to the west, and Trans Nzoia to the north.
Other counties sharing borders with Uasin Gishu are Elgeyo Marakwet to the east and Baringo to the South East.
The county is named after the Ilwuasinkishu Maasai clan who initially used the area for grazing.
Uasin Gishu’s main economic activities are large scale wheat and maize farming, dairy farming, horticulture and sports tourism - the result of terrific performances of its world famous athletes. The county is also a manufacturing hub, with numerous industries and factories providing employment to thousands of its urban population.
Some industries to note include Raiply Wood factory, Rivatex and Rupa Textiles, Baraka fertilizer factory, Kenya Pipeline Company, Kenya Cooperative Creameries as well as corn, wheat and pyrethrum factories all within Eldoret town.
Eldoret International Airport located some 16 km south of Eldoret town along Eldoret - Kisumu road is an important economic hub for handling commercial cargo goods. Besides passenger flights, the airport handles three international cargo flights and several weekly ad hoc freighters.
In 2015, the County launched a Resource Map which comprehensively indicates investment opportunities based on the available resources, and profiles ten (10) viable small scale enterprises/industries that are easy to start and can be replicated throughout the County.
Uasin Gishu County government has created policies to ensure that entrepreneurs can register and get necessary permits and licenses upon inspection in a record 72 hours; three business days.
Uasin Gishu County is a member of North Rift Economic Bloc. This forum comprises of:-
Turkana, Baringo, Elgeiyo Marakwet, Samburu, West Pokot, Trans Nzoia, Uasin Gishu and Nandi. This trading bloc opens entrepreneurs to a catchment population of more than five millions controlling average total annual budget of 50billion shillings (over 5 Million USD)- and growing.
In May, 2017, The Guangdong New South Group Ltd signed a $ 2 billion deal with the Kenyan government for the construction of an industrial park in Kenya at the Eldoret Special Economic Zone. Africa Economic Zone (AEZ) is the first privately owned special economic Zone in Kenya and has been licensed in accordance with Special Economic Zones Act 2015.
Uasin Gishu County has partnered with a Swedish investor to establish a waste management system that will facilitate the generation of electricity besides conserving the environment.
Uasin Gishu County was ranked the top by a World Bank report in ease of doing business. The survey which is the third to be carried by World Bank and the first in the devolved system of governance covered the period between 2012 and 2016 and focused on the four indicators; starting a business, dealing with construction permits, registering property, and enforcing contract.
A prosperous and attractive County in Kenya and beyond.
To serve and improve people’s livelihood through good leadership, innovative technology and efficiency.
This section outlines some of the investment opportunities that can be exploited as flagship projects. Uasin Gishu County is well endowed with agricultural, livestock and natural resources that have not fully exploited considering their high potential for value addition.
The County by virtue of locational economies and emerging economic realities is emerging as one of the most competitive and perfect investment destinations in the post devolution Kenya in the medium to long term. The pervasive high-end Vision 2030 infrastructure development projects being developed in Uasin Gishu and neighboring Counties are reinforcing and fortifying the County as the investment destination. The County is strategically located within a network of transport infrastructure, opening the County to transit business to the land-locked countries (Uganda, Rwanda, and Southern Sudan). The standard gauge railway (SGR) is planned to reach the County’s headquarters in 2017 further enhancing resources movement into and out of the County. Eldoret International Airport generates substantial opportunities for export business in Uasin Gishu County.
Housing, especially in urban areas is yet another investment opportunity where land is a critical factor. There is a general shortage of decent housing in almost all the urban and trading centres in Uasin Gishu County. Regardless of the foregoing, substantial open spaces and land is available that could be utilized to provide housing to residents.
The increased demand for housing is brought about by an upsurge of immigrants from neighboring Counties, and countries such as Uganda and South Sudan.
Eldoret town has grown to become the fifth largest town in Kenya after Nairobi, Mombasa, Kisumu and Nakuru. Demand for modern office blocks increases by the day. Unfortunately, the current supply is outstripped by the current demand. Institutions such as banks, universities and some government offices experience challenges in securing good space for business as they continue to expand.
There exists an opportunity for County Government to forge a project in the development of houses for both residential and commercial uses in Eldoret town on a public-private-partnership (PPP) basis. The County may avail land and other attractive incentives for this engagement to be successful. This will alleviate housing problems especially in Eldoret town. This can be extended to other urban centers where need for low cost but decent houses are in high demand.
Demand for renewable energy sources such as wind, small and large hydropower, biogas and solar in the County is expected to grow in the long term. Renewable energy technologies such as wind turbines, solar panels, biogas digesters, and small hydropower turbines are a multi-billion dollar industry.
Uasin-Gishu is considered the home of champions since almost all world
beaters have a home in the county. Opportunities exist in the development of
sports academies to nurture the budding talent.
The county’s high altitude makes it ideal for development and construction of world-class sports facilities to for use by both local and international athletes.
Uasin Gishu is the only town in the world where tourists can come to visit and see athletes training in the fields every day. Unique high training facilities are major ingredients for the splendid performance of these athletes. These includes Rosa Training Centre, Chagaiya High altitude Centre and Kipchoge Stadium.
Agricultural Value Addition.
The region is considered part of Kenya’s breadbasket. Since the large and medium scale, Maize and wheat farms contribute to the national food security. Opportunities exist for capacity building and technology transfer to support the farming activities.
The county seeks investors for joint venture partnerships with farmers to
develop milk processing plants.
The climatic conditions and availability of agricultural land in county heavily support the sector.
Residents of Eldoret town and those from the neighbouring counties provide a good market for the dairy products.
Furthermore, Investors can also take advantage of the regional markets due to the proximity of the county to the markets and the location of Eldoret town that sits along the Northern Corridor.
The county produces quality passion fruits that are currently being exported
Opportunities exist in ventures that support the growth of the sector particularly large scale farming and construction of fruit processing plants.
The Eldoret International Airport provides a good avenue for meat Exports.
Opportunities exist in assisting in the construction of modern abattoirs.
Investors will heavily benefit from the meat export business especially to the Middle East where huge demand exists.
Time to Complete
Reserve a unique company name at the Uasin Gishu Huduma Center in Eldoret
Agency: Eldoret Huduma Center
The name reservation is regulated by the Companies Act 2015 (Part V, Section 48). The procedure begins by making a payment for name reservation at the cashier's desk of the Eldoret Huduma Center. Then a payment slip, together with an application for reservation of a company name (Form CR14) are submitted to the counter service provided by the same Huduma Center. The name is reserved for 30 days and can be extended to a maximum period of 60 days from the time of reservation. Besides the Huduma Centers, the name reservation can also be done through a text-messaging system or online through the e-citizen portal. The text-messaging system (through safari.com company) works both for fee payment and name reservation. However, applicants still need to visit the Huduma Center to receive final name approval. This is why the majority of applicants choose to visit the Huduma Center directly, rather than use the text-messaging system. The e-citizen online platform (www.ecitizen.go.ke) is fully electronic and enables online name reservation. However, due to various challenges--such as inconsistent reliability of the system and lack of good internet connection and infrastructure for entrepreneurs--the online platform is not widely used.
KES 100 (filing fee)
Apply for company registration
Agency: Nairobi Huduma Center
Applicants can no
longer apply for company registration at the Registrar of Companies (Sheria
House). The entrepreneur must submit a business application package at the
business registration assessment desk of two of the three Nairobi Huduma
Centers (GPO Branch and City Square Branch) containing the following
KES 12,000 (KES 10,000 registration fee + KES 2,000 transportation)
Register for taxes at the Kenya Revenue Authority
Agency: Kenya Revenue Authority
personal tax identification number (PIN) of directors and the company tax
identification number are required to register for VAT, local service tax,
and the Pay-As-You-Earn (PAYE) tax.
Apply for a business permit
Agency: Directorate of Licensing of Uasin Gishu County
The applicant fills out the application form with details about the scope, size, and location of intended business. The county regulation requires that an Officer from the Directorate of Licensing of the Uasin Gishu County visit the intended business site before issuing a new single business permit. Thereafter, the applicant is given a generated bill (amount payable for acquiring a permit). The fee varies by type of business, number of employees, size and location of company’s premises. The fee is payable to the Directorate of Licensing, Uasin Gishu County Government. For a medium trader, shop, or retail service from 5 to 20 employees and/or premises 50–300 square meters, the fee is KES 8,500. Upon payment, all forms are taken for signature and the permit is ready for collection latest by the following day. The business permit is usually issued in 2 days for new business and in 1 day for renewals.
KES 8,800 (KES 300 application fee + KES 8,500 single business permit fee)
Register with the National Social Security Fund (NSSF)
Agency: National Social Security Fund
The National Social Security Fund provides the employee with a lump-sum retirement benefit. Historically, the rate of return paid by the state is considerably less than that achieved by private schemes, but participation is mandatory. The employer pays a standard contribution of about 1% of salary, subject to a maximum of KES 400 per month. Half the contribution is deductible from the employee’s salary. The precise amount of the contribution (less than the maximum) is determined by reference to salary bands. As of June 2014, following the enactment of the new National Social Security Fund Act (2013), the pension contribution is 12% of the pensionable wages made up of two equal portions of 6% from the employee and 6% from the employer subject to an upper limit of KES 2,160. This procedure is done at the local NSSF office in Eldoret.
Make a company seal
Agency: Seal maker
Seals are made by private entities that require sight of a copy of the certificate of incorporation. The average price of the company seal is KES 3,000. There are now multiple seal shops in Eldoret.
Register with the National Hospital Insurance Fund (NHIF)
Agency: National Hospital Insurance Fund
The employee contributes a fixed sum to the National Hospital Insurance Fund (NHIF), which must be deducted by the employer from the employees’ salary. The maximum contribution is KES 320 per month. The contributions are used to offset the costs of medical treatment, but they only cover a fraction of actual costs. Hence, most companies provide employees with medical insurance. This procedure is done at the Eldoret NHIF office.
|Rates Struck (per Acre)||Ksh 10||Ksh 10|
|Area Davelopment fees - (ii) Kipkarren, Kimumu, Kingongo||Ksh 600||Kshs 600|
Meru county is located in the eastern region of Kenya
approximately approximately 225kilometres north east of Nairobi, one of the
largest counties in Kenya. Traversed by the Equator, the county enjoys its central location in Kenya.Its bordered by Isiolo County to the North, Tharaka Nithi and Nyeri Coutnies to its southwest and Laikipia County to its immediate West.
The county's terrain is vast and varied. the steep variation in elevation is directly attributable to the counties diverse micro climates from sweeping plains and grasslands to the mountainous forests.The subsequent impact of this terrain is largely manifest in the agricultural economy of Meru which favours the commercial and subsistence production of virtually any crop that can be cultivated in the country.
The county is subdivided into nine subcounties. Each sub county is allocated at least five wards.As with many regions in Kenya, agriculture is the economic mainstay of the region. In addition to a wide assortment of subsistence crops and staple foods Meru's major cash crops include; tea, coffee, miraa and bananas
The county has established the Meru County Investment & Development Corporation to spearhead investment promotion activities in the county. The corporation provides a convenient framework for engagement by the private sector willing to do business in meru.
The corporation offers attractive investment incentives including ready designs, feasibility studies, long term land leasing and investment partnership
The ready investment opportunities in Meru County include but not limited to;
1. Large scale farmings
meru is a rich agricultural county with 90% of the county population engaged either directly or indirectly in agriculture and livestock farming. some of the major constraints faced by farmers are lack of markets for their produce, depressed farm gate prices and high post harvest losses.in addioiton to a wide assortment of subsistence crops and staple foods, Meru's major cash crops include; tea, coffee, Miraa, potatoes and bananas.
Meru is a rich agricultural county with over county has chosen the factory model for processing agriculture and livestock products as the most important intervention for economic and social- transformation of the county citizens. we have identified erection of modular agriculture and livestock cold storage and processing facilities in Meru County on commercial basis as a viable way to create commercial value for both farmers and investors.
3. Renewable energy
it is estimated that due to the closeness of meru to Mount Kenya water tower and the many permanent rivers that traverse the county meru county could be home to more than 200MW of small hydro power potential waiting to be exploited for commercial gain.
In the realm of wind energy, meru county has a rich wind energy belt with significant wind energy potential.In the field of solar, meru county lies astride the equator and the potential for solar energy generation is large.
the renewable energy sector in meru county is therefore a vibrant with attractive commercial opportunities for the investors. we encourage other interested investors to come to meru county and participate in this highly rewarding sector.
The tourism industry is fairly developed in the county comprising geographical, cultural and historical tourist attraction sites. The county seeks for partners to help develop the various tourist attraction sites. With the diversity of tourism attractions there exists opportunities to provide tour facilities like tour vans and tour guides. Other tourism activities that can be promoted are clubs, recreational and amusement parks , rock climbing on the slopes of Mt. Kenya, Cultural showcases and dances, scenic viewpoints, Eco lodges and bungee jumping.
5. Real estate
|tax rate (case No.1)|
Kenya’s Manufacturing Sector is Relatively Strong and Well
Diversified when compared to countries that are in a similar phase of Economic
Development. The Kenyan Government has put in
Policies and Incentives to Encourage Procurement of Locally Manufactured
Products by Government Agencies.
The locally manufactured products are also highly demanded in the Regional Economic blocs like the East African Community (EAC) and Common Market for East and Southern Africa (COMESA).
Kenyan Manufactured Textile is also eligible to Access the USA Market Under the provisions of the African Growth opportunity Act (AGOA)
Some of the Areas you could invest in include but are not limited to the following;
· Manufacture and Supply of inputs to existing firms
· Tyre Manufacturing Plant
· Manufacture of construction materials such as cement and plumbing ware
· Manufacture of Sheet Glass
· Motor Vehicle assembly and Components Manufacture
· Manufacture of packaging materials
· Manufacture of household goods
· Manufacture of electronics
· Food processing and packaging
Agriculture remains Kenya’s apex Sector and largest contributor to GDP, Foreign Exchange Earnings and Economic Growth and the Government has Intensified Investment and Development of the Agricultural Sector by Earmarking Some Venture Opportunities for Foreign Investors seeking local counterparts, Privatization of Factories, Export Oriented Agri-Business and Investment in Large scale Irrigation Schemes.
Great Investment opportunities lie in Agricultural Support Services, Production for both local consumption, export and Agro-processing
Information and Communication Technology
The National ICT Master plan 2017 aims at making Kenya one of the top 10 ICT Hubs in the world. The Project is aimed at creating of at least 500 New Medium-sized firms and 20 Multinational Companies in the ICT Sectors.
Investment opportunities in the ICT sector include but are not limited to the following;
· Data Centre and Disaster RecoveryCentre
· Call Centre (In- and Outbound).
· Internet Content and Commerce Solutions
· Transcription and Translation Solutions
· Web Hosting and Hosted Server Solutions
· Data Entry
· Internet Security Solutions
· Value Add Service for Mobile Phones
· Graphics and Animation Development
· Value Add Distribution of Mobile Phones Computer Games Application and Content
· Animated Movies and Special Effects
· M-Payment systems
· Modelling for Architects and Engineers workforce and Enterprise solutions
Assembling of hardware
Kenya is fast becoming the regional hub for ICT and mainly because of its highly skilled labour and relative sophistication compared to neighbouring markets within the EAC. Kenya is also a host to regional offices for the world’s biggest technology companies including Microsoft, Google, Cisco, Oracle, IBM and SAP.
Machakos County is a major player in the Konza Techno City, a Kenya Vision 2030 flagship project that is set to be Africa's first Silicon Savannah and an oasis of modern living and class. This Silicon Savannah creates investment opportunities in:
· Science and Technology Parks
· Business Process Outsourcing (BPO)
· Information Technology Outsourcing (ITO)
· Knowledge Process Outsourcing (KPO)
· Creative Services Outsourcing(CSO)
City project is set to host Business Process Outsourcing (BPO) ventures, a
science park, a convention centre, shopping malls, hotels, and health
As a county, Machakos can, through the Investment Promotion Board, position investors to take advantage of the opportunity through investments in tertiary institutions and to position the education offered in these institutions to cater to the ICT opportunities.
The County Government is also committed to providing investors with land to set up these institutions as well as ICT manufacturing facilities.
The Real Estate and Construction Industry in Kenya has experienced exponential Growth as Government and Private Developers Increase Investments in the Real Estate and Construction Industry in response to the huge demand for housing, Office Space and Recreational Facilities caused by the Rapid Growth in the Country’s population, increased foreign direct investment and trade in the region.
Opportunities in the Real Estate and Construction Industry Include the Following;
· Construction of Residential, Commercial and Industrial buildings, including prefabricated low-cost housing
· Manufacture and supply of Construction Materials and Components
· Manufacture and supply of construction equipment
With an increase in the population and congestion in the neighboring Nairobi County, there is a growing demand for affordable housing. It’s estimated that of the 150,000 units required annually, only an estimate of 35,000 are built. The shortage for low cost housing is particularly acute in urban areas since only an estimated 6,000 units (20%) of the total number of houses built, fall under this category. This brings about investment opportunities in the construction of prefabricated low-cost housing, residential, commercial and industrial buildings.
Machakos as a county has been able to secure Memorandums of Understanding (MOUs) with key stakeholders in the industry to provide quality and affordable construction materials and components for the sector. The county is also streamlining building plan approvals to ensure that all development plans submitted are approved within 21 days.
Machakos County has a well-developed building and construction industry and is a key focal point in Kenya's on-going retail real estate boom. Given that the county collects cess tax between KES.500,000 to KES.1 million (about 5,800 to 11,700 dollars) daily goes to show that there is high demand for construction materials mined within Machakos County. The new Machakos City also presents the opportunity for investors in the building and construction industry to bid for road, bridge and urban infrastructure projects within the county.
The Kenyan Government has embarked on a Journey to Position Kenya as one of the top 10 Tourism Destinations in the World. The Tourism Sector is one of the Major Economic Sectors being the 3rd largest foreign Income Earner after Agriculture and Manufacturing. The enduring appeal of the country's scenery, wildlife, climate and tropical coastline has allowed the establishment of a large hotel industry and a sound tourism base.
There is great opportunity for investment in the Tourism Sector in Machakos County and Kenya at large. Investment Opportunities is this Sector include but is not limited to the following;
· Development of resort Cities
· Construction of high end and budget hotel
· Investment in Conference Facilities
· Set up of Amusement Parks, Clubs, Casinos, theatres and Specialty restaurants
· Construction of sporting facilities and sport academies
· Hosting world class sporting events like cycling, car rallies and marathons
· Manufacture and Distribution of Health and fitness facilities
Machakos County offers an authentic cultural experience with its natural attraction sites and recreation centers. The county boasts a diverse selection of cultural tourist attractions such as the Fourteen falls, OlDonyo Sabuk National Park, The Magnetic hill anti-gravity site, the Masinga dam, Iveti Forest reserve, the Komarok shrine, Machakos People’s park, the 5,000-seater open amphitheatre and the Lukenya hills and many more. The County's hilly terrain and breathtaking scenery is perfect for camping, hiking safaris, ecotourism among other tourist activities.
The county has identified tourism and entertainment as a priority sector where investors are invited to partner with the county on the following strategic focal areas:
o Entertainment, Hotels and Recreation Centers
There is high demand for quality accommodation within the county. Kenya as a country also needs to increase its bed capacity for four-star and five-star accommodation from the current 18%.
o Conference Tourism
There is opportunity to tap into conference tourism given that Kenya’s marketing efforts are positioning the country as a regional hub for doing business. Machakos’ proximity to the Jomo Kenyatta International Airport positions the county as a viable meeting and conferencing alternative to the capital city Nairobi.
o Medical Tourism
With a secured investment of over KES.2 Billion (about 23.5 million dollars) from The Nairobi Hospital, and commitment from educational institutions such as Mount Kenya University and the United States International University, Machakos county is still open to support other investors in healthcare by providing land to put up world-class medical facilities that will position Machakos as a healthcare destination for tourists from the region.
o Film Making
Film makers can leverage on the county’s potential in the filming locations, the Machakos Entertainment Center for Film, Media, Music and the Arts (MACHAWOOD), as well as maximize on the zero rating of VAT on film production equipment and services.
o Sports Tourism
Machakos is a centre for cultural, arts and sports. The CAR Africa women’s Sevens Cup in April, The Bamburi Rugby Super Series, The Tusker premier league, The Masaku 7s Rugby Tournament and The East and Central Africa Senior Challenge tournament are some of the sporting activities happening in the county. The county is seeking investment partners in sports stadia, sporting activities and has even set aside land for the construction of a Formula 1 race track.
The energy sector in Kenya is largely dominated by petroleum and electricity, with wood fuel providing the basic energy needs of the rural communities, urban poor, and the informal sector. In Kenya, electricity is mainly generated from hydro, thermal and geothermal sources. Demand for power is 1,191 MW while the effective installed capacity under normal hydrology is 1,429 MW. Hydro sources contribute 52.1% of total electricity, thermal 32.5%, geothermal 13.2%, bio-gas1.8% and wind 0.4%.
There is a huge opportunity in Investing in the Energy sector because the Demand for Energy has skyrocketed in the recent past due the various Industrial & Commercial Parks being set up by the Government aiming at Converting the Economy from an largely Agriculture dependent economy to an Industrialized Economy as set out in Kenya’s Vision 2030. The Demand is also influenced by the Ambitious Government Last mile project aiming at connecting all schools and homesteads with Electricity. Available Investment Opportunities Include but are not limited to the Following;
· Transformer Manufacturing
· Concrete Pole Manufacturing
· Electric Consumables Manufacture
· Renewable Power Development (solar and wind energy)
· Storage facilities for Petroleum products
Other investment sectors under review by the county and the Investment Promotion Board include:
· Financial Services
· Environment and Natural Resources
· Pharmaceutical Sector
Kenya is currently the largest Producer of Pharmaceutical products in the Common Market for Eastern and Southern Africa (COMESA) region, and this is as a result of the Governments’ Efforts to promote local and Foreign Investment in the Sector.
Opportunities in the Pharmaceutical Sector include but are not limited to the following;
· Set up pharmaceutical manufacturing industries which can produce drugs and Vaccines
· Production and Provision of medical gases generator plants
· Production of Medical Equipment and Maintenance
· Provision of specialized diagnostic services
· Multipurpose chemical plant for bulk production of intermediate inputs such as paracetamol and aspirin
· Manufacture of medical tools such as syringes
· Disposal of medical waste
Aviation provides significant economic benefits to the Kenyan economy and its citizens, some of which are unique and essential to the operation of modern economies. Kenya, being the second largest aviation market in Africa after South Africa and one of the top developing aviation markets on the continent, offers great opportunities for new investors in aviation.
Machakos County which borders Nairobi county and adjacent to Jomo Kenyatta international airport has several investment opportunities in aviation.
Some of investment opportunities in aviation include;
· Setting up Aviation schools
· Aviation consultancies.
· Cargo freight services
· Tourist flight services
· Airport construction
· Setting up factories to manufacture navigation aids equipment
The County Government in collaboration with the National Government is committed to the provision of quality education, training and research to the people of Machakos and for all Kenyans. This is in line with Vision 2030 that singles out education and training as the vehicle that will drive the country into becoming a middle-income economy.
The county aims at enhancing the quality of education offered in tertiary institutions to ensure learners acquire competencies and skills that will enable them meet the human resource aspirations of Vision 2030 and also to diversify the courses offered to make them modern and relevant in order to ensure that the graduates are competitive in the local, national and international job markets.
There are over 916 public primary schools in the county with an enrolment of about 355000 children. There are about 270 secondary schools in the county which reflects a disproportionate relationship between primary school and secondary school investment strategy.
Some of investment opportunities in education sector include;
1. Construction of new secondary schools
In order to address the inadequate physical facilities at secondary level there is need to construct more schools and expand and rehabilitate the existing ones. Thus, construction of private secondary schools offers excellent opportunities for investors in this sector.
2. Opportunities in Higher Education
There is a high demand for university education in Kenya. Out of the 174290 secondary school leavers who qualified to enter university in 2016, only 80000 were admitted to public and private universities, forcing many able parents to send their children overseas. There is therefore a great investment potential for private investors in the higher education sub-sector. Opportunities in this area include
· Investment in construction of private universities and infrastructure
· Supply of equipment and teaching facilities
· Set up manufacturing centres for training equipment focusing in university education
3. Establishment of Technical & Vocational Education Training (TIVET) institutions
This is an area where support and investment is required. The demand of skills training is higher than the supply. Given that out of about 550,000 students who completed secondary education in 2015 only about 80,000 had access to university education. The rest had to seek opportunities in TIVET institutions which have a capacity of 70,000. Therefore, there is an opportunity for Investment in
· Construction of extra TIVET institutions to carter for the high demand
· Training equipment and infrastructure manufacturing to support these institutions
The sustainable management of the environment and natural resources in the county is critical for economic growth and development. There exists a wide range of priority investment areas within this sector ranging from climate change prediction and adaptation, catchment protection, sustainable exploitation of economically viable mineral resources.
Some of the investment opportunities in this sector include;
There are huge investment opportunities in Solid waste management in the county especially in Mavoko, Machakos town and other major towns in the county.
Specific areas of investment interests include
· Recycling of waste (paper, glass, plastics, metals)
· Disposal of hazardous waste
· Sewerage system infrastructure construction and maintenance services
· Solid Waste Management Infrastructure construction and maintenance services
Kenya’s economy being mainly natural resource-based is highly vulnerable to climate change and variability.
Potential areas for private investment include;
· Construction works for dams and pans
· Drilling of boreholes
· Establishment of a centre of excellence in climate change issues
· Promotion of education, training and public awareness relating to climate change
· Carbon trading, Kenya has low carbon emissions and therefore welcomes
· Natural resource harvesting
A good percentage of the county’s mineral resource is yet to be explored and exploited. Most of the minerals still remain unexploited due to inadequate knowledge on their status, economic viability and appropriate mining technologies. Limestone marbles occurring widely in various parts of the county are the major minerals exploited for use in cement and construction industry. Others include diatomite, gypsum, bentonite, kyanite, garnet, beryl, muscovite, magnesite and coal.
Some of the opportunities in this sector include;
· Mineral exploitation
· Value addition through direct or joint venture partnerships
Financial sector is a world full of investment opportunities in Machakos County. With more banks per head than other major African markets, Kenya is a world leader in financial services and mobile money technology. Opportunities beckon across East Africa and beyond, and capital can be raised swiftly to meet evolving regulatory requirements. Banks have realised that what works in Kenya could be a platform for growth across neighbouring countries and further afield, and a race for new customers means expanding branch networks both in Kenya and in the EAC region.
According to figures published by CBK, the banking sector is growing and profitable. The sector is ahead of minimum reserve requirements. The banking sector’s overall balance sheet grew by 21.4% to KSh3.6trn ($39.6bn) in June 2015, up from KSh3trn ($33bn) a year earlier. Total income reported during the year across the sector increased by 13.7% from KSh199bn ($2.2bn) in June 2014 to KSh226.3bn ($2.5bn) in June 2015. Measured bypre-tax profits, profitability improved by 8% from KSh71bn ($781m) in the period to June 2014 up to KSh76.9bn ($845.9m) for the period to June 30, 2015.
As the busy Kenyan market continues to grow and mature, and with clear sights towards the huge potential of the region and the rest of Africa Machakos county welcomes both foreign and local investors to enter the market by investing in the county. There are numerous monetary institutions in the county that are in dire need of investors.
Opportunities in financial sector include,
· Capital markets
· Pension schemes
· Mobile banking
The water sector in Machakos county offers good investment opportunities given that, as the economy expands all sectors will require huge supply and efficient use of water.
Water scarcity has been a major problem in Machakos County yet the two largest rivers in Kenya (Athiand Tana) pass through the County. So far, only 34.7% of the County residents have access to improved water sources. This is very low as compared to the figures by WHO/UNICEF Joint Monitoring Programme for Water Supply and Sanitation, where the report, Progress on Drinking Water and Sanitation 2012, noted that at the end of 2010, 89% of the world’s population used improved drinking water sources. This was one per cent more than the 88% Millennium Development Goal target.
Development of water storage capacity is therefore of the highest priority for the department of Water and Irrigation.
Investment opportunities in this sector include;
· Construction of dams
· Drilling of boreholes
· Supply of piped water to homesteads
· Setting up a Water bottling firm
Tax incentives are mainly in place to promote investment or exports in Kenya. Investors eying to invest in Machakos County will enjoy the following investment incentives
Investors in manufacturing and hotel sectors outside Nairobi and Mombasa are eligible for an investment allowance of 85 percent on plant, machinery, buildings, and equipment. Investments located in Nairobi and Mombasa are eligible for the investment allowance at 35 percent.
For manufacturers under bond, the applicable rate is 100 per cent for all locations.
Liberal rates are allowed for depreciation of assets based on book value as follows:
Hotels…………………………………………4% per year
Industrial buildings………………………….25% per year
Plant and machinery………………………12.5% per year
Vehicles, trucks, and tractors…………25-37% per year.Loss Carried Forward
Business enterprises that suffer tax losses can carry forward such losses indefinitely to be offset against future taxable profits.
Remissions from customs duties
Duties on machinery and equipment may be reduced to 10% where the investment is expected to have net foreign exchange earnings or savings for Kenya. Imported plant and equipment intended for industries located outside major towns are also charged custom duties at 10%.
A 50 per cent remission of duties and tax is granted to industries established within designated boundaries of Nairobi, Mombasa and other urban centres.
Duty remissions facility
Materials imported for use in manufacture for export or for the production of duty free items for sale domestically are eligible for duty remission, irrespective of the source of financing. This programme is open to all types of investment whether they are for expansion, replacement or rehabilitation or new manufacturing plants.
Manufacturing under bond
To encourage manufacturing in Kenya for world markets, the Government has established an in-bond programme open to both local and foreign investors. Enterprises operating under the programme are offered the following incentives:
Exemption from duty and VAT on imported plant, machinery and equipment, raw materials and other imported inputs.
100 per cent investment allowance on plant, machinery, equipment and buildings. Bonded manufacturing enterprises can be licensed to operate in Nairobi, Mombasa, Kisumu, Eldoret, Nakuru, Nyeri and Thika or within the immediate environs of these towns.
Exports from Kenya enjoy preferential access to world markets under a number of special access and duty reduction programmes. Regional Markets ACP/Lome Convention Generalized System of Preferences (GSP) Kenya was the first country to qualify for preferential access into the United States Market, under the African Growth Opportunity Act (AGOA) of 2001.
Kenya is a member of Common Market for Eastern and Southern Africa (COMESA) with a population of approximately 400 million. Exports and imports within member countries are entitled to tariff rates.
Exports from Kenya entering the European Union are entitled to duty reductions or exemptions and freedom from all quota restrictions under the terms of the LOME Convention. Trade preferences include duty free entry of all industrial products and a wide range of agricultural products including beef, fish, dairy products, cereals, fresh and processed fruits and vegetables.
Under the Generalized System of Preferences, a wide range of Kenya’s manufactured products are entitled to preferential duty treatment in the United States of America, Japan, Canada, Switzerland, Norway, Sweden, Finland, Australia, Austria, New Zealand, and most East European countries.
In addition, no quantitative restrictions are applicable to Kenyan exports of any of the 3,000 plus items currently eligible for GSP treatment.
Exports from Kenya enjoy preferential access to world markets under a number of special access and duty reduction programmes.
Generalized System of Preferences (GSP)
Kenya was the first country to qualify for preferential access into the United States Market, under the African Growth Opportunity Act (AGOA) of 2001.Gaurantees to investors
Kenya provides the following guarantees to local and foreign investors: Repatriation of Capital and Profit Guarantee Against Expropriation Other Guarantees Kenya is a member of the World Bank affiliated Multilateral Investment Guarantee Agency (MIGA), which issues guarantees against non-commercial risks to enterprises that invest in signatory countries. Kenya is also a member of the International Centre for Settlement of Investment Disputes (UCID).
Capital repatriation and remittance of dividends and interests are guaranteed to foreign investors under the Foreign Investment Protection Act (FIPA) (Cap.518). To be eligible for FIPA guarantees, investors should obtain a Certificate of Approved Enterprise from the Ministry of Finance.
The Kenyan Constitution provides for a guarantee against expropriation of private property. Expropriation may only occur either for security reasons or public interest, upon which fair and prompt compensation is guaranteed.
Kenya provides the following guarantees to local and foreign investors:
Repatriation of Capital and Profit
Guarantee Against Expropriation
Other Guarantees Kenya is a member of the World Bank affiliated Multilateral Investment Guarantee Agency (MIGA), which issues guarantees against non-commercial risks to enterprises that invest in signatory countries. Kenya is also a member of the International Centre for Settlement of Investment Disputes (UCID).
|Single Business Permit Application||260|
|Relevant documents||SAMPLE INTRODUCTION|
Physical Address :P.O. Box 715-00204 - Athi River, Kenya
Telephone Contact : +254 73 404 4040
Email Address : firstname.lastname@example.org
Webmail : www.machakosinvest.com
Starting a business.
The Registrar of Companies is responsible for business registration in Kenya. He/she issues certificates of compliance for foreign companies, certificates of incorporation for local companies and certificates of registration for sole proprietorships.
Firms must then register their businesses with the Kenya Revenue Authority (KRA), obtain a business permit from the County depending on the type of business activity and also register with the National Social Security Fund (NSSF) and National Hospital Insurance Fund (NHIF).
The principal types of business enterprises in Kenya are:
Registered Companies (Private and Public)
Branch offices of companies registered outside Kenya; and
The Companies Act, 2015, assented by the President on 11th September 2015, makes it possible for a single person to form a private and a public company. Private companies are still restricted to a maximum of 50 members.
A local company is a company incorporated in Kenya. It may take the form of:
A company limited by shares
A company limited by guarantee
The registration process for the various forms of local company is the same though the requirements and costs vary.
For more information about the required documentation, fees and processes to register a local company, please visit the KenInvest E-Regulations Portal
Opening a branch office of an oversees company
Companies incorporated outside of Kenya can do business in Kenya by registering a branch. The registrar of companies issues a certificate of compliance once all the requirements have been met.
For more information about the required documentation, fees and processes to register a local branch of an overseas company, please visit the KenInvest
Kericho County has a population of 752,396 (2009 census) and an area of 2,479km. The county is located in south western Kenya and borders Nakuru to the east and south east, Kisumu to the west and north-west, Bomet to the south, Nandi to the north, Baringo and Uasin Gishu to the north-east, and Nyamira to the south-east.
The Mau Forest in Kericho County is the biggest water catchment area in Kenya. At a high altitude and virtually daily rains, Kericho is the centre of Kenya’s largest tea industry Kericho County is renowned worldwide as the home of Kenya's best tea, which is grown in large plantations and exported mainly to Egypt and the United Kingdom. Some of the biggest tea companies including Unilever Kenya, James Finlay and Williamson Tea are based here. It is also home to the popular Ketepa brand
The county is in the process of creating a unit for
processing investment Development and promotion.
Processing of licences has been enhanced by reducing bureaucratic processes.H. E. Prof. Paul Kiprono Chepkwony
The cooperative sector:
Institutions in the cooperative movement will continue to play a vital role in the upgrading of the performance of the agricultural sector. Action will be taken to improve their technical and management capacity for better performance.
Other initiatives will involve strengthening the performance of the agricultural sector in the areas of strategic investments, crop husbandry, export and marketing promotion, seed quality improvement, livestock development.
In order to ensure the competitiveness of Kenya’s wholesale and retail sector, a number of challenges must be addressed. However, there are also many opportunities that could be exploited in the current system. This will be necessary in order to achieve the goals specified for this sector under Vision 2030.
• Improvement in supply chain: There will be a need to address the current fragmentation from producers to distributor and consumer outlets. The Government will enhance the forward and backward linkages in the sector to reduce wastage, particularly of agricultural perishable goods between the farm gate and the consumer.
• Promotion of producer-based groups or associations: In order to address the problems of fragmentation and informality that currently exist in some areas of the county, the Government will encourage linkages between the formal market operators e.g. supermarkets and cooperatives of primary producers. These producer groups will be organized to comprise individual producers in a given locality, with their membership being based solely on the capability to deliver the agreed products to buyers. While these groups could be based on the existing producer cooperatives, it may be necessary to form groups that bring farmers who are not necessarily involved in the production of cash crops that form the basis of the existing cooperatives. This integration is necessary to avoid the problem of exclusion that currently exists with cash crop cooperative societies.
Agriculture: Kenya aims to promote an innovative, commercially-oriented, and modern agricultural sector. This will be accomplished through:
(i) transforming key institutions in agriculture and livestock to promote agricultural growth;
(ii) increasing productivity of crops and livestock;
(iii) introducing land use polices for better utilization of high and medium potential lands;
(iv) developing more irrigable areas in arid and semi-arid lands for both crops and livestock; and
(v) improving market access for our smallholders through better supply chain management.
Vision 2030 aims at adding value to our farm and livestock and livestock products before they reach local and international markets.
(i) Investing in the Coffee Mill which has been set up by the Kipkelion District Cooperative Union in Kipkelion District by providing the equity capital
(ii) Formation of a subsidiary of the union to market coffee once processed
(iii)Importation of fertilizer for use through pooling the resources together by identifying a suitable cooperative institution to handle the same e.g Sinendet Multipurpose Cooperative Society limited
(i) Pursuing the certification of tea through various agencies so as to gain market acceptance e.g rainforest alliance and Kenya Bureau of Standards
(ii) Branding and re-branding to undertaken by the local institutions
(i) Formation of an out growers company to handle sugar cane matters
(ii) Strengthening the sugar cane based cooperatives
(iii)Formation of Rural Sacco to provide financial services to the can farmers.
(iv)Expanding the existing Sugarcane factory through Public-Private Partnership
(i) Mobilize farmers to form or join the existing cooperatives
(ii) Setting up milk coolers for storage of milk due to its perishability
(iii)Setting up Chilling and processing plants
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FOR FURTHER INQUIRIES:
County Government of Kericho
P.O. Box 112 - 20200
KERICHO, Kenya (East Africa).
Tel: +254 -52-2021100
Working Hours: Monday- Friday
8:00 am - 5:00pm (GMT + 3:00)
The county is located in central Kenya, bordering Murang’a county to the north and north east, Machakos County to the east, Nairobi and Kajiado counties to the south, Nakuru County to the west, and Nyandarua County to the North West and covers an area of 2,543.4km2 with 476.3 Km2 under forest cover according to the 2009 Kenya Population and Housing Census.
It is strategically located on the Northern Corridor the Critical linkages to the Lapset corridor to the North and the Southern and Central Corridor. It is advantaged to close proximity to the Capital City and the JKIA, Kenya regional aviation hub.
Kiambu County is renowned as the main industrial City in Kenya going by the moniker, the “Birmingham” of Kenya. It seeks to establish and reposition itself in this crucial space, investors will find immense opportunities and support in establishing businesses in Kiambu County in line with the Vision 2030
It offers attractive investment conditions as the cost of doing business in Kiambu County is competitive due to competitively priced infrastructure and readily available markets.In addition, the county has over 90% of all the market centres connected to the national Grid, and as a boost to power generation, there has been established a power station in Witethie
near Thika town with the capacity of 87 MW of thermal power
The County is in the process of establishing an investor enabling Centre which is a first point of contact and one stop shop for all first time investors both local and foreign, Including robust grievances redressal mechanisms supported by supported by online portal.
Several sectors of the Kiambu County Economy are endowed with Investment opportunities. These sectors include;
Ø Export Processing Zones for Manufacturing Enterprises in strategic sectors, such as iron and steel, leather processing, fertilizers, agro-processing, machine tools and machinery, motor-vehicle assembly and spare parts
Ø Production of high quality print and packaging materials
Ø Automotive assembly plants & high end garages, Irrigation Equipment
Ø Establishment of industrial park and cottage industry
AGRIBUSINESS AND AGRO PROCESSING
Ø Banana Fiber Extraction Plant
Ø Branded Indigenous Chicken Processing Factory
Ø Animal Feeds Processing
Ø Dairy Products Processing Plant
Ø Fish farming and processing
Ø Establishment of Special Economic Zones for value addition to agriculture, livestock and fisheries produce
ENERGY AND INFRASTRUCTURE DEVELOPMENT
Ø Expansion and Modernization of Public Transport Networks
Ø Generating power through wind power, solar and biogas development
Ø Rural electrification / establishment of power and power lines
Ø Construction of Karimenu II Dam to supply water to Thika, Juja and Ruiru and Kiambaa Sub- Counties
Ø Ruiru Dam II to increase water supply in Kiambu Kianale Dam- To serve Limuru and Kikuyu Sub- Counties
Ø Kiamba Dam- To improve water supply in Kabete Sub- County
Ø Integrated waste management, which will entail, waste separation, composting of the biodegradable matter to organic fertilizers, recycling
TOURISM AND LIFESTYLE
Ø Construction of Regional and International Hotel Chains
Ø Grow Health Tourism by providing support services e.g. accommodation, aftercare nursing homes
Ø Expanding Sports, Historical, Adventure and Nature Tourism
Ø Development of Theme Parks
Ø Development of Best in Class Conferencing Facilities
Ø Establishment of a Film City or Film Studios
REAL ESTATE DEVELOPMENT
Ø Construction of residential houses
Ø Reconstruction and rehabilitation of old housing stock particularly old council houses
Ø Establishment of commercial buildings
Ø Construction of shopping malls and business centers
WHOLESALE AND RETAIL
Ø Development of 3 Wholesale Hub Markets
Ø Construction of 3 Tier-1 Retail Markets
Ø Establishment of Modern, World Class Trade, Exhibition and Convention Centres
Ø Building New Capacity for Formal Retail Establishments such as hyper and supermarkets
Ø Establishment of Trade and Logistics Infrastructure such as Warehouses
Ø Internet Retailing
EDUCATION AND TRAINING
Ø Private Universities
Ø Technical, training, vocational and ICT colleges
Ø Early Childhood Centers
Ø Technology Incubation Centers
Ø Research Centers
Ø Partnerships with existing universities or technical support
Setting up a business in Kiambu County
1. Single Business Permit
2.Approval and Construction permit
|What is the procedure?||Kiambu Finance Bill 2016|
The following fees charges and rent are applied to businesses operating in Kiambu County
The Executive Committee Member may exempt, waive or vary fees
or charges payable under this bill in accordance to the criteria
prescribed under the Public Finance Management Act.
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Procedures of applying for land title deed
|What is the procedure?||land titles 282|
Office of the Governor
Office of The Deputy Governor and CECM of Trade, Industry, Tourism and Cooperatives development
P.O. Box 2344-00900, Kiambu
+254 714 606 660
Kajiado County covers an approximate area of 21,900.9
square kilometers. The county boarders the Nairobi City to the south and with
two international entry points from Tanzania. The county headquarters is
Kajiado town which is approximately 80Km from Nairobi. Major towns include:
Kitengela, Ngong, Ongata Rongai, Kiserian, Namanga and Oloitokitok.
The main physical features of Kajiado are plains, valleys occasional volcanic hills. Major natural sceneries include the Ngong Hills, the Rift valley escarpments, Lake Magadi, Mt Kilimanjaro view. Wildlife habitat is a major land occupation. Scarce vegetation is characteristic in low altitude areas which increases with altitude and rain.
The population is estimated at 1 million by 2017 with 5.5% growth rate. The county’s population comprises of diverse communities from all over the Kenya, with the Maasai culture being dominant in the county.
The county’s Proximity to Tanzania makes it strategic for both local, international trade. The county also enjoys access to major markets especially Nairobi. Key economic activities include: Agriculture, Livestock keeping, Poultry farming, Tourism, Mining, Manufacturing, Beadwork and other cultural products. Availability of land for industrial investment, large scale farming.
The county has the opportunities in the following sectors
Tourism and Hospitality
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