Insights

Introduction. A citizen of Kenya can possess land under the freehold or leasehold tenure system. A foreign investor is restricted to a leasehold interest only for a maximum of 99 years, but under freehold, the land interest automatically reverts to a leasehold interest.  The summary below discusses the process of purchasing land. Due diligence. Due diligence is crucial for an...

Land under the Constitution of Kenya is classified into public, private, and community land. Public Land This is land vested and managed by the state on behalf of citizens. It is mainly where roads, government buildings, and other state property are based. Public land can only be sold or transferred to a foreigner as private land under a leasehold interest through a grant of lease...

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...

Business Type: Real Estate Investment Trust (REIT) managers are companies incorporated in Kenya and licensed by the CMA to provide real estate management services in respect of a REIT. REITs are collective investment schemes that invest primarily in income-generating real estate and distribute a significant portion of their income to unitholders. Licensing Requirements: Must be...