Kenyans will be mandated to show proof of Ksh5 million before being awarded an investment certificate by the Kenya Investment Corporation.
This is according to the Investment Promotion and Facilitation Bill, 2023, which is currently under the public participation stage.
Considering efforts to set up free trade between East African Community (EAC) member states, investors from EAC countries will also be mandated to come up with Ksh5 million proof of investment.
“An applicant shall be entitled to an investment certificate if the amount to be invested by a local investor is at least five million shillings or the equivalent in another currency,” the Bill states.
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 Ksh81 million.
According to the Bill, investment means the contribution of local or foreign capital by an investor and includes the creation or acquisition of business assets by or for a business enterprise.
A company incorporated under the laws of Kenya, in which the majority of shares are held by a person who is a citizen of Kenya or an East Africa partner state will be categorised as local and qualify for the ksh5 million proof of investment.
Apart from the Ksh5 million 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 mandated to help increase foreign exchange either through exports or import substitution.
Additionally, all investors will be required to utilise domestic raw materials, supplies and services.
Adoption of value addition in the processing of local, natural and agricultural resources will be another condition to be considered while awarding the certificate.
“If the Corporation decides to issue an investment certificate it shall issue the certificate on the date the applicant requests,” the Bill dictates.
“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.”
