What type(s) of legal entity(ies) can a foreign investor set up in your country?
- Companies – Subsidiary or a Branch
- Limited Liability Companies
- Partnerships
- Limited Liability Partnerships
TerraLex Cross-Border Guide to Cross-Border Guide to Business Investment in Africa
TerraLex is pleased to announce its recent digital publication of a Cross-Border Guide to Business Investment in Africa. Africa’s emerging countries form an integral part of any successful global business strategy and offer tremendous growth opportunities for multinational companies and global entrepreneurs alike. The following guide provides important information businesses need to know while considering their investment into the region.
How to Use: You can use the tools below to create bespoke reports for the jurisdiction(s) and topic(s) covered. Click into single jurisdiction for one location or use the compare tool to compare multiple jurisdictions. Select the jurisdictions and topics of interest to create your unique report. You also have the option to print or download using the ellipsis button in the top right corner.
Kenya Cross-Border Guide to Business Investment in Africa Guide
- Authors:
- Christopher Kiragu
- Date posted:
- 30/04/2026
- Last update:
- 05/10/2023
What is the principal legislation that governs the various legal entities that an investor can set up in your country?
- The Constitution of Kenya 2010
- Companies Act 2015
- Business Registration Act 2015
- Capital Markets Authority Act, Cap. 485A
- The Public Private Partnerships (PPP) Act 2013
- The Insolvency Act 2015
What is the process of registering each of the proposed entities in your country, and how long does it take?
Registration of companies and partnerships are done through the E-Citizen online portal. The process involves:
- Reserving the company’s name
- Preparing and filling the requisite forms
- Registering for Kenya Revenue Authority Pin Number, National Social Security Fund and National Health Insurance Fund
- Approval from the Registrar of companies.
This process can take a period of 2 weeks to 2 months, depending on the entity being established.
Are there any minimum share capital requirements?
The Investment Promotion Act provides for at least USD 100,000 or equivalent in that currency.
Are there any exchange control rules governing the flow of funds into and out of your country?
Proceeds of Crime and Anti-money Laundering Regulations 2013. Regulation 31 provides that institutions are to obtain written statements from customers to support large, frequent, or unusual cash deposits. The cash transaction should be equivalent or exceeding USD 10,000.
Is there a requirement to have local (nationals) as directors? If so, how many?
There is a requirement to have local nationals as directors. However, this requirement is sector specific. There are sectors that require a company to have local directors.
Is there any kind of legislation that requires specific demographics for the various legal entities or establishes a quota system (whether gender, ethnicity, race, disability, etc.)?
Article 27(8) of the Constitution of Kenya 2010, provides for the two-thirds gender rule in all elective posts and appointments.
Are there any periodical statutory reports that the various legal entities would need to file?
- Tax returns
- Annual returns
- Financial statements
What are the key labour laws and regulations in your country, that would affect a foreign investor?
- The Employment Act
- Constitution of Kenya
- The Occupational Safety and Health Act
- Work Injury Benefits Act
What are the types of work permits foreign investors and employees need to obtain and what is the process involved in obtaining them?
- Class A permit - issued to a person intending to engage in prospecting for minerals or mining.
- Class B permit - issued to a person in the agricultural or animal husbandry.
- Class C permit - issued to a person who is a member of a prescribed profession who intends to practice that profession.
- Class D permit - issued to a person who is offered specific employment by a specific person.
- Class F permit - issued to a person who is who intends to engage, in a specific manufacture in Kenya.
- Class G permit - issued to a person who intends to engage, in a specific trade, business, consultancy or profession.
- Class I permit - issued to a person who is a member of an institution registered under the Society's Act who is engaged as a missionary, Member of a company limited by guarantee, Member of a trust registered under the Trustees Act and is approved by the Government of Kenya, and whose presence in Kenya will be of benefit to Kenya.
- Class K permit - issued to a person who is not less than 35 years of age; and has in his own right and at his full and free disposition an assured annual income of not less than the prescribed amount that is derived from sources other than any such employment, occupation, trade, business, or profession.
This process of applying for permits is done through the Immigration Department Foreign Nationals Services Portal.
What are the legal issues associated with foreign ownership of land?
A foreign investor can only own land on a leasehold tenure for a period of 99 years. However, upon expiry of the 99 years one can apply for the renewal.
Which bilateral and multilateral treaties is your country a party to that help foster business?
- Double Taxation Agreement
- Africa Continental Free Trade Area
- East Africa Community
- IGAD
- African Growth and Opportunity Act
- COMESA Treaty
- AU treaty
What are the government policies and incentives that are available to encourage investment in your country?
What are the key tax implications associated with opening and running the various legal entities in your country?
Branch companies are taxed at 37.5% corporation tax while a subsidiary company are taxed at 30%.
What are the key Competition Laws in your country associated with opening the various legal entities by a foreign investor?
- Constitution of Kenya
- Competition Act
- Competition General Rules
Does your jurisdiction recognize alternative dispute resolution mechanisms and are local or international arbitral awards recognized and enforceable and if so, how?
Alternative dispute resolution mechanisms are recognised in Kenya. Arbitral awards are recognized as binding, upon application in writing to the High Court and shall be enforced as an order of the Court.
Are there any key laws aimed at protecting investors who wish to invest in your country?
The Investment Promotion Act 2004, which establishes the Kenya Investment Authority.
What is the current state of the investment climate in your country?
Kenya has a positive investment climate that has made it attractive to international companies and firms seeking a favourable location for regional and pan-African operations.
What are the investment opportunities available in your country for foreign investors? Identify the most viable industries or sectors in your country for investing.
- Business and Professional services
- Software and IT services
- Logistics
- Communication and media
- Financial services
What is the state of infrastructure in your country, and how will it affect foreign investment?
Kenya has strong telecommunication infrastructure, a robust financial sector, developed logistics hub, and extensive aviation connections throughout Africa, Asia, Europe, and North and South America.
What are the risks associated with investing in your country, and how can they be mitigated?
Change in political climate, bureaucracy, and red tape continue to be challenges To mitigate these factors, one needs to conduct due diligence when setting physical location, keeping up to date with local news to keep informed on the latest economic and political developments, and seek advice from local experts and partners.
Disclaimer: This guide contains summaries of general principles of law. It is not a substitute for specific legal advice and should not be relied upon in relation to the application of the law or subject matter covered.