The government, on Friday, August 7, gazetted an ultimatum to foreign companies offering Information and Communication Technology services to encourage local participation Kenya.
The National Information Communications and Technology (ICT) Policy Guidelines, 2020 stipulates that only companies with at least 30% substantive Kenyan ownership, either corporate or individual, will be licensed to provide ICT services.
ICT CS Joe Mucheru approved the guideline which may see licenses for the categorised foreign companies revoked if found flouting the rule.
“The government strongly encourages Kenyans to participate in the ICT and science and technology sector through equity participation.
"For purposes of this rule, companies without majority Kenyan ownership will not be considered Kenyan, and may thus not be calculated as part of the 30% Kenyan ownership calculus,”it adds.
Companies flouting this rule will not be allowed to operate in Kenya.
The new policy further states that licensees will have 3 years to meet the local equity ownership threshold and they may apply to the Cabinet Secretary for a one-year extension with appropriately acceptable justifications.
CS Joe Mucheru stated that the Government took into account the tremendous impact of globalisation and the rapid changes in technology while reviewing the policy.
These changes, the CS said, have invariably affected the traditional approach to the management of public affairs and service delivery, and increasingly inform the need for an adaptive policy and regulatory response.
As the government seeks to enforce the new law, cases of wrangles over ownership of startups and companies in Kenya are still in the spotlight.
In January 2020, a Kenyan man filed a case against two foreign nationals for allegedly kicking him out of a multi-million company he reportedly founded.
Kennedy Nganga claimed that he launched Safi Analytics, a smart metering start-up for the agro sector. The foreigners, however, responded arguing that Nga'nga did not create the software nor birth the idea for the company.
