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Kenyan government disavows controversial local ownership requirement

Published on December 09, 2015

The Kenyan government has suspended a controversial local ownership requirement in the new Companies Act 2015.  The confusion regarding how the provision made its way into the law is unsettling for foreign companies that are interested in one of the region’s top investment destinations.

Regarded as an overdue modernization of Kenya’s company and insolvency laws, the Companies Act is a sizeable piece of legislation.  Indeed, the main provisions pertaining to foreign companies do not appear until over 680 pages into the law.  Pursuant to section 974, a foreign company cannot carry on business in Kenya unless it is registered.  Pursuant to section 975(2)(b), registration involves submitting an application that, inter alia, “demonstrates that at least thirty percent of the company’s shareholding is held by Kenyan citizen. Read more. Source | Cov Africa