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FDI: Entry and ownership rule
On 15 June 2016, the government of Kenya enforced in full the ‘Companies Act 2015’. This law for the first time introduces the necessity for all the newly registered foreign firms in Kenya (i.e. firms registered after the effective date of the ‘Companies Act 2015’), to cede minimum 30% of their ownership to citizens born in Kenya. Furthermore, this new law states that investors that do not comply with this newly established domestic ownership requirement will receive a fine amounting to Sh 5 million (USD 49356.39).
The denoted domestic ownership requirement was repealed on 20 September 2016 (see related measure).
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