IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 11 Jun 2015 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

 

On 11 June 2015, the government of Kenya amended its ‘Capital Markets (Foreign Investors) Regulations’ introduced in 2002, via issuing ‘Legal Notice No. 113’.

The amendment introduced via ‘Legal Notice No. 113’ eliminated the 75% threshold of foreign ownership in listed companies within the Kenyan jurisdiction. Therefore, allowing foreign investors to own 100% of listed companies in Kenya.

Nevertheless, the denoted ‘Legal Notice No. 113’ also states that the Cabinet Secretary will still possess the capacity to impose a maximum limit of foreign ownership in an issuer or a listed company, via a Notice in the Gazette.

The Cabinet Secretary can impose the prior under the following circumstances:

  1. in a privatisation transaction where the government or its agencies are divesting their shares to the public;
  2. when the government considers that a degree of local ownership needs to be maintained in sectors or industries of strategic importance;
  3. when the government considers that limited foreign ownership is necessary for protecting the national interest.

AFFECTED COUNTRIES

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