Kenya_ICT_Kenya Repeals Local Equity Requirements

On August 22, 2023, the Kenyan government formally removed a 30 percent domestic equity requirement that was imposed on non-Kenyan information communication technology (ICT) companies operating in Kenya.  Specifically, the requirement had applied to ICT companies operating under license issued by the Communications Authority of Kenya.  Before this repeal, foreign ICT companies operating in Kenya had three years (from April 2021) to comply with the provision and meet the local equity ownership requirement by March of 2024.  Although companies could apply for a waiver from the requirement, that temporary solution did not provide certainty for companies seeking to make large and long-term investments in the country.  According to President Ruto, the decision to reverse this rule was driven by the need to make Kenya an attractive investment destination for ICT companies and strengthen its digital hub status. 

In addition to enhancing Kenya’s overall ease of doing business, removing the 30 percent domestic equity requirement should spur the growth of international businesses in Kenya’s ICT sector, aka “Silicon Savannah.”  U.S. ICT companies can now proceed with long-term plans for establishing local presences in Nairobi or to expand current operations without having to rely on temporary waivers. 

For more information or assistance, U.S. companies can contact CS Kenya Commercial Specialist Janet Mwangi at Janet.Mwangi@trade.gov