Business Law

Summary Local content is the added value brought to the Kenyan economy through procuring locally available services, goods, supplies and work force. The Objectives of The Bill To provide a framework for regulation of local content by prescribing minimum local content quotas in various sectors: To promote the local industry and sourcing of locally produced goods and services To...

A summary of the Income Tax (Significant Economic Presence Tax) Regulations, 2025 What is the Significant Economic Presence Tax? This is a final tax on the income of non-resident persons who provide services through a business carried out over the internet or an electronic network to users in Kenya. Applicability and ScopeTarget Group: Non-resident persons without a permanent...

The Capital Markets Authority (CMA) of Kenya regulates various sectors within the securities and capital markets industry. Section 23 of the Capital Markets Act provides for licenses required under the securities industry, covering securities exchanges, commodities/derivatives exchanges, registered venture capital companies, collective investment schemes, and credit rating agencies, among...

Business Type: Authorized depositories, or custodians, are banks licensed under the Banking Act or financial institutions approved by the CMA to hold in custody funds, securities, financial instruments, or documents of title to assets registered in the name of local, East African, or foreign investors, or of investment portfolios. Every investment adviser and fund manager that manages...

Business Type: Cross-border listing is an activity (not a standalone license) that requires CMA approval for Kenyan companies seeking to list their securities on foreign stock exchanges or for foreign companies seeking to list their securities on Kenyan exchanges (e.g., the Nairobi Securities Exchange). Licensing Requirements: Kenyan companies seeking foreign listings must provide evidence...

Business Type: The Regulatory Sandbox is not a license but a controlled environment established by the CMA to allow innovative financial products, services, and business models to be tested under regulatory supervision. It enables fintech companies and other innovators to experiment with new technologies and approaches without immediately complying with all regulatory requirements....

Business Type: Alternative Investment Funds (AIFs) are specialized investment vehicles that pool capital from sophisticated investors to invest in alternative assets beyond traditional stocks and bonds. AIFs may invest in private equity, venture capital, real estate, infrastructure, hedge fund strategies, commodities, and other non-traditional asset classes. These funds target institutional...

Business Type: Corporate trustees are entities licensed under Regulation 31 of the Capital Markets (Collective Investment Schemes) Regulations, 2023, to provide oversight and governance for collective investment schemes such as unit trusts, mutual funds, and other pooled investment vehicles. Corporate trustees play a critical role in safeguarding investors’ interests by ensuring that...

Business Type: REIT trustees are responsible under the trust deed for the safe custody of REIT assets for the benefit of unitholders as a whole. They oversee the activities of the REIT manager for compliance with the trust deed and regulatory requirements. Licensing Requirements: Must provide certificate of incorporation, memorandum and articles of association, a business plan, unaudited...