Kenyans will now be required to provide proof of KES 5million before being awarded an investment certificate by the Kenya Investment Corporation, according to the Investment Promotion and Facilitation Bill, 2023, which is currently under the public participation stage.
For investors outside EAC, the amount to be invested must be at least USD500,000 or its equivalent in any currency. At the current exchange rate, this is equivalent to KES 81million.
As per the Bill, investment refers to the provision of capital, whether local or foreign, by an investor, and encompasses the establishment or procurement of business assets for a business entity.
A corporation formed under Kenya’s legislation, where the majority of shares are owned by an individual who is a citizen of Kenya or an East African partner state, will be classified as local and eligible for the Ksh5 million investment proof requirement.
Apart from the KES 5million proof of investment, the investor must also show how the business will create employment for Kenyans. Other conditions before awarding the certificate include proof of acquisition of new skills or technology for Kenyans and contribution to tax revenues or other government revenues.
Non-EAC investors will be obligated to contribute to the growth of foreign exchange reserves by either exporting goods or substituting imports.
Furthermore, all investors will need to use domestic raw materials, supplies, and services. The adoption of value addition in the processing of local natural and agricultural resources will also be a requirement for obtaining the certificate.
“If the Corporation decides to issue an investment certificate it shall issue the certificate on the date the applicant requests. The Corporation may revoke an investment certificate if it was issued on the basis of incorrect information given by the applicant for the certificate or a condition of the investment certificate was breached.” the bill dictates.