Investing in Kenya-East Africa:

Registration of a company or office in Kenya

Investing in Kenya has now been simplified through the Kenya Investment Authority (KIA), a parastatal formed to oversee ease in doing business in Kenya for Foreign Direct Investors (FDIs). The one-stop business registration concept at KIA has now made investors in East Africa Kenya happier than ever. Starting an office is now very easy and the time it takes to register a foreign company has been halved.

Foreign Direct Investments (FDIs) into Kenya are increasing at a steady rate given the continued streamlining of registration and set up processes by the new government. After a long hiatus of bad governance, the democratically elected government of Narc moved with a lot of speed to remove most of the red tape that previously marked investment road into Kenya. It required an investor a total of 21 business licenses and registrations to be able to do business in the country.

All these licenses would be from separate ministries and local authorities and one had to hop from one place to the other. It was almost criminal to think FDI in Kenya in those days Not only was this time consuming and tedious but it was also very expensive. Put in the scourge of corrupt officials and it was a sure dead-on-your-tracks scourge.

Most investment attempts by foreigners became a cropper before they even started when they came to realize it might cost them more in under the table dealings than it would to actually put down their money to invest.

Now the process has been highly reduced by cutting off all the unnecessary bureaucratic processes in an effort to make investment a one stop shop. The introduction of the Kenya Investment Authority (KIA) marked the centralization of investment procedures within the government.

Kenya is now among the easiest country to invest in, in regards to establishment of companies by foreign investors. The KIA developed a simple step by step manual to investment in Kenya which simplified the procedures to a 5 step process.

This includes:-

1. Fill the "One Stop" KIA application Form.
2. Engage legal advice in Kenya.
3. Register your business
4. Submit KIA form + Certificate of Incorporation + Articles and
memorandum of association to KIA
5. Issuance of The Investment License

Business Types you can register in Kenya
The principal types of business enterprises in Kenya are:

1. Registered Companies (Private and Public)
2. Branch offices of companies registered outside Kenya
3. Partnerships
4. Sole Proprietorships
5. Co-operatives

Companies are registered as limited liability companies as in 1 and 2 above, and regulated by the Companies Act (Cap 486). Kenya's legal system is based on English law and practice. A wide range of legal services are locally available.

Company Registration
The initial step in forming a company is to register the proposed company name with the Registrar of Companies at the Attorney General's Chambers in Nairobi. The Memorandum and Articles of Association should be filed with the Registrar of Companies who, upon satisfaction, issues the Certificate of Incorporation.

Opening a branch office of an overseas company
An overseas company wishing to open a branch office in Kenya should deliver the following to the Registrar of Companies:

• A certified copy of the Charter, Statutes or Memorandum and
Articles of Association of the Company, or other instruments
defining the constitution of the company;
• A list of the directors and secretary of the company, giving full
names, nationality and other directorships of companies in Kenya;
• A statement of all existing charges entered into by the company
affecting properties in Kenya;
• Names and postal addresses of one or more persons resident in
Kenya, authorised to accept, on behalf of the company, service of
notices required to be served on the company;
• Full address of the registered or principal office of the company in
its home country; and,
• Full address of place of business in Kenya.

Both private and public companies may allot shares for considerations other than cash. Companies need to inform the Registrar of Companies of such allotments and submit a written contract constituting the title of the allottee.