Kenya Act or statute

Parliament of Kenya

Investment Promotion Act

Jurisdiction: Kenya
Structure: 31 provisions
Citation: Cap. 485
Dates: As at 31 Dec 2022

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Dates: As at 31 Dec 2022

Source attribution: Source: Kenya Law

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Purpose and legislative effect

“This Act may be cited as the Investment Promotion Act.”

This Act may be cited as the Investment Promotion Act. Defines the phrase: "a natural person who is not a citizen of Kenya". If the Authority proposes to revoke an investment certificate, it must give the certificate holder at least thirty days' written notice of the grounds and an opportunity to make representations. People who applied for, or who are or were holders of, an investment certificate may ask the Cabinet Secretary to appoint a panel to review an Authority decision; the Cabinet Secretary appoints panels, may make rules, appoints staff, and panels have court-like powers and may govern their own procedure. Local investors and foreign investors who intend to invest in Kenya may apply to the Authority for an investment certificate; the Authority may request clarifications and additional information; applications are required to be in the prescribed form.

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PRELIMINARY - 1. Short title

This Act may be cited as the Investment Promotion Act.

Section 1

INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 7. Conditions of certificate

Conditions of a certificate are those prescribed in the regulations.

Section 7

KENYA INVESTMENT AUTHORITY - 16. Board of Authority

The Authority must have a board responsible for the overall direction and management of the Authority; certain persons may not be appointed as Chairperson or a member under subsection (2)(g) unless they are distinguished in law, economics, commerce, industry…

Section 16

KENYA INVESTMENT AUTHORITY - 24. Other staff

The Authority may appoint additional staff besides the managing director, and the Authority shall determine the terms and conditions of employment for the Authority's staff (excluding the managing director).

Section 24

MISCELLANEOUS - 32. General authority, etc. under repealed Act continued

General authorities issued under the repealed Investment Promotion Centre Act are to be continued as investment certificates under this Act, and pending applications for such general authorities are to be continued as applications for investment certificates.

Section 32

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Source record from new.kenyalaw.org · As at 31 Dec 2022

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Showing 31 of 31 provisions

Provision 22Offence 3Amendment 2Short title

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

This Act may be cited as the Investment Promotion Act.

Section 1. Short title Section This Act may be cited as the Investment Promotion Act.

Section 1Verify source

§ 2PRELIMINARY - 2. DefinitionsInterpretation

Defines the phrase: "a natural person who is not a citizen of Kenya".

Section 2. Definitions Section a natural person who is not a citizen of Kenya;

Section 2Verify source

Part II

INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC.

§ 10INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 10. RevocationProvision

If the Authority proposes to revoke an investment certificate, it must give the certificate holder at least thirty days' written notice of the grounds and an opportunity to make representations.

Section 10. Revocation Section 10(1)(a) that the certificate was issued on the basis of incorrect information given by the applicant for the certificate; Section 10(1)(b) that the investment certificate was obtained by fraud; or Section 10(1)(c) that a condition of the investment certificate was breached. Section 10(2) If the Authority proposes to revoke an investment certificate, the Authority shall give the holder of the investment certificate at least thirty days written notice of the grounds for the proposed revocation and shall give the holder an opportunity to make representations as to why the investment certificate should not be revoked.

Section 10Verify source

§ 11INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 11. Review of Authority decisionProvision

People who applied for, or who are or were holders of, an investment certificate may ask the Cabinet Secretary to appoint a panel to review an Authority decision; the Cabinet Secretary appoints panels, may make rules, appoints staff, and panels have court-like powers and may govern their own procedure.

Section 11. Review of Authority decision Section 11(1) A person who applied for an investment certificate or a person who is or was a holder of an investment certificate may request the Cabinet Secretary to appoint a panel to review a decision of the Authority relating to the application or certificate. Section 11(2)(a) a chairperson who shall be an advocate of at least ten years standing; and Section 11(2)(b) two other members each of whom shall be a person who is experienced in law, economics or commerce. Section 11(3)(a) confirm, vary or set aside the decision appealed from; Section 11(3)(b) direct that the Authority reconsider a matter in accordance with such directions as the panel may make; Section 11(3)(c) make an order as to the payment of costs. Section 11(4) The Cabinet Secretary may make rules governing the procedure of panels under this section. Section 11(5) Subject to any rules made by the Cabinet Secretary, a panel may govern its own procedure. Section 11(6) A panel shall have the same powers as a court to make orders to secure the attendance of persons, for the production of documents or for the investigation and punishment of contempt. Section 11(7) The Cabinet Secretary shall appoint a secretary to the panel and such other staff as are necessary for the proper discharge of the functions of the panel. Section 11(8) The members of a panel shall be paid such allowances and expenses as are determined by the Cabinet Secretary. Section 11(9) The expenses of the panel, including the allowances and expenses of the members of the panel, shall be paid by the Government.

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§ 3INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 3. ApplicationsProvision

Local investors and foreign investors who intend to invest in Kenya may apply to the Authority for an investment certificate; the Authority may request clarifications and additional information; applications are required to be in the prescribed form.

Section 3. Applications Section 3(1) A local investor may apply to the Authority for an investment certificate. Section 3(2) A foreign investor who intends to invest in Kenya may apply to the Authority for an investment certificate. Section 3(3) An application for an investment certificate shall be in the prescribed form. Section 3(4) The Authority may request clarifications and additional information. [Act No. 6 of 2005 , s. 55.]

Section 3Verify source

§ 4INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 4. Entitlement to certificateSubstitution

Sets conditions for entitlement to an investment certificate including completeness of application, minimum investment amounts for foreign and local investors, lawfulness and benefit to Kenya, and a non-exhaustive list of beneficial factors.

Section 4. Entitlement to certificate Section 4(1)(a) the application is complete and satisfies the applicable requirements under this Act; Section 4(1)(b) the amount to be invested by a foreign investor is at least one hundred thousand United States of America dollars or the equivalent in any currency; Section 4(1)(c) the amount to be invested by a local investor is at least one million shillings or the equivalent in another currency; and Section 4(1)(d) the investment and the activity related to the investment are lawful and beneficial to Kenya. Section 4(2)(a) creation of employment for Kenyans; Section 4(2)(b) acquisition of new skills or technology for Kenyans; Section 4(2)(c) contribution to tax revenues or other Government revenues; Section 4(2)(d) a transfer of technology to Kenya; Section 4(2)(e) an increase in foreign exchange, either through exports or import substitution; Section 4(2)(f) utilization of domestic raw materials, supplies and services; Section 4(2)(g) adoption of value addition in the processing of local, natural and agricultural resources; Section 4(2)(h) utilization, promotion, development and implementation of information and communication technology; Section 4(2)(i) any other factors that the Authority considers beneficial to Kenya.

Section 4Verify source

§ 5INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 5. Procedures for consideration of applicationProvision

The procedures set out in the First Schedule apply to consideration of an application for an investment certificate.

Section 5. Procedures for consideration of application Section The procedures set out in the First Schedule shall apply with respect to the consideration of an application for an investment certificate.

Section 5Verify source

§ 6INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 6. Issue of certificateProvision

The Authority must issue an investment certificate when it decides to do so and shall issue it on the date the applicant requests; the Authority may issue the certificate in the name of a corporation established by the applicant or another business organization; a local investor without a certificate must register the investment with the Authority.

Section 6. Issue of certificate Section 6(1) If the Authority decides to issue an investment certificate it shall issue the certificate on the date the applicant requests. Section 6(2) The Authority may issue an investment certificate in the name of a corporation established by the applicant for the purposes of the investment or in the name of any other business organization to be used for the purposes of the investment. Section 6(3) Deleted by ActNo. 6 of 2005, s. 57. Section 6(4) A local investor who does not hold an investment certificate shall register the investment with the Authority. [Act No. 6 of 2005 , s. 57.]

Section 6Verify source

§ 7INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 7. Conditions of certificateProvision

Conditions of a certificate are those prescribed in the regulations.

Section 7. Conditions of certificate Section such conditions as are prescribed in the regulations; and

Section 7Verify source

§ 8INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 8. TransferProvision

An investment certificate can be transferred only with the written approval of the Authority, and transfers are subject to any restrictions prescribed in the regulations.

Section 8. Transfer Section 8(1) An investment certificate may be transferred only with the written approval of the Authority. Section 8(2) The transfer of an investment certificate is subject to any restrictions prescribed in the regulations.

Section 8Verify source

§ 9INVESTMENT CERTIFICATES – APPLICATION AND ISSUE, ETC. - 9. AmendmentAmendment

The Authority may amend an investment certificate at the request of the holder, subject to restrictions prescribed in the regulations.

Section 9. Amendment Section At the request of the holder of the certificate, the Authority may amend an investment certificate subject to any restrictions prescribed in the regulations.

Section 9Verify source

Part III

INVESTMENT CERTIFICATES – BENEFITS

§ 12INVESTMENT CERTIFICATES – BENEFITS - 12. Entitlement to certain licencesProvision

The holder of an investment certificate is entitled to licences listed in the Second Schedule; they may apply within twelve months and the licence will be deemed issued until issued or twelve months elapse; the holder must pay fees for the licences commencing on the day the certificate is issued and pay them within six months; the Authority shall facilitate issuance.

Section 12. Entitlement to certain licences Section 12(1) An investment certificate shall set out the licences listed in the Second Schedule that are necessary to the proposed investment and to which the holder of the investment certificate would, on application, be legally entitled. Section 12(2)(a) the holder of the investment certificate is entitled to have the licence issued, subject to any conditions set out in the Second Schedule or in the investment certificate, upon application made within twelve months after the investment certificate is issued and upon payment of the applicable fee, if any; and Section 12(2)(b) until the licence is issued or twelve months elapse after the investment certificate is issued, whichever occurs first, the licence shall be deemed to have been issued, subject to any conditions set out in the Second Schedule or in the investment certificate and subject to the requirement to pay fees under subsection (3). Section 12(3) The holder of an investment certificate shall pay any fees that would be payable under the relevant legislation for the licences set out in the investment certificate in respect of the time period commencing on the day the investment certificate is issued and such fees shall be paid within six months after the issue of the investment certificate. Section 12(4) The entitlement to licences under subsection (2)(a) is for the initial issue of such licences only and following that initial issue the laws under which the licences are issued apply in the same way as they apply to all licences, including, for greater certainty, with respect to the revocation or renewal of the licences. Section 12(5) The Authority shall facilitate the issue of licences to which the holder of an investment certificate is entitled under this section.

Section 12Verify source

§ 13INVESTMENT CERTIFICATES – BENEFITS - 13. Entitlement to entry permits for expatriatesProvision

Holders of investment certificates are entitled to specified entry permits, dependant passes and re-entry permits; permits are subject to conditions and exclusions and the Authority must facilitate issuance.

Section 13. Entitlement to entry permits for expatriates Section 13(1)(a) three class A entry permits for management or technical staff; and Section 13(1)(b) three class H, I or J entry permits for owners, shareholders or partners. Section 13(2) The initial issue of a permit under this section shall be for a two year period. Section 13(3) The holder of the investment certificate is entitled to have a permit under this section reissued upon its expiry or issued to a different employee, owner, shareholder or partner. Section 13(4) The holder of the investment certificate is not entitled to have a permit issued to a person who is a prohibited immigrant within the meaning of the Kenya Citizenship and Immigration Act (Cap. 170). Section 13(5) A permit under this section is subject to a conditions that the holder of the permit complies with the laws of Kenya. Section 13(6)(a) a dependant’s pass for each dependant of the person to whom the permit is issued; and Section 13(6)(b) such re-entry permits as are required in connection with the permit or with the passes under paragraph (a). Section 13(7) Subsections (4) and (5) apply, with necessary modifications, with respect to passes or re-entry permits under subsection (6). Section 13(8)(a) application being made for the permit or pass; Section 13(8)(b) the applicable fee, if any, being paid; and Section 13(8)(c) any security deposit or bond required under the Kenya Citizenship and Immigration Act (Cap. 170) being paid or provided. Section 13(9) Notwithstanding subsection (8)(b), no fee is payable for the initial issue of a permit under subsection (1)(b). Section 13(10) If an entry permit described in subsection (1)(a) has already been issued to an employee of the holder of the investment certificate as of the time the investment certificate was issued, that permit shall be deemed to be one of the permits to which the holder of the certificate is entitled under subsection (1)(a). Section 13(11) If an entry permit described in subsection (1)(b) has already been issued to the holder of the investment certificate or an owner, shareholder or partner of the holder as of the time the investment certificate was issued, that permit shall be deemed to be one of the permits to which the holder of the certificate is entitled under subsection (1)(b). Section 13(12) The Authority shall facilitate the issue of permits and passes that the holder of the investment certificate is entitled to have issued under this section. Section 13(13) For greater certainty, nothing in this section limits the issue, under the Kenya Citizenship and Immigration Act (Cap. 170), of other permits or passes in addition to those which the holder of an investment certificate is entitled to have issued under this section.

Section 13Verify source

Part IV

KENYA INVESTMENT AUTHORITY

§ 14KENYA INVESTMENT AUTHORITY - 14. Authority continued as body corporateProvision

The Investment Promotion Centre established under the Investment Promotion Centre Act (Cap. 485) is continued as a body corporate under this Act to be known as the Kenya Investment Authority.

Section 14. Authority continued as body corporate Section The Investment Promotion Centre established under the Investment Promotion Centre Act (Cap. 485) is hereby continued as a body corporate under this Act to be known as the Kenya Investment Authority.

Section 14Verify source

§ 15KENYA INVESTMENT AUTHORITY - 15. FunctionsProvision

The Authority must promote and facilitate investment in Kenya.

Section 15. Functions Section 15(1) The Authority shall promote and facilitate investment in Kenya. Section 15(2)(a) issuing investment certificates; Section 15(2)(a)(i) issuing investment certificates; Section 15(2)(a)(ii) assisting in obtaining any necessary licences and permits; Section 15(2)(a)(iii) assisting in obtaining incentives or exemptions under the Income Tax Act ( Cap. 470 ), the Excise and Duty Act (Cap. 472), the Value Added Tax Act (Cap. 476) or other legislation; and Section 15(2)(a)(iv) providing information, including information on investment opportunities or sources of capital. Section 15(2)(b) promote, both locally and internationally, the opportunities for investment in Kenya; Section 15(2)(c) review the investment environment and make recommendations to the Government and others, with respect to changes that would promote and facilitate investment, including changes to licensing requirements; Section 15(2)(d) facilitate and manage investment sites, estates or land together with associated facilities on the sites, estates and land; Section 15(2)(e) appoint agents within the country and in any other country to carry out certain functions on its behalf, as it may consider necessary; Section 15(2)(f) carry out such other activities as, in the Authority’s opinion, will promote and facilitate investment.

Section 15Verify source

§ 16KENYA INVESTMENT AUTHORITY - 16. Board of AuthorityProvision

Section 16. Board of Authority Section 16(1) The Authority shall have a board with responsibility for the overall direction and management of the Authority. Section 16(2)(a) a Chairperson appointed by the President; Section 16(2)(b) the managing director of the Authority; Section 16(2)(c) the secretary to the Cabinet; Section 16(2)(d) finance; Section 16(2)(d)(i) finance; Section 16(2)(d)(ii) trade and Industry; Section 16(2)(d)(iii) agriculture; Section 16(2)(d)(iv) lands; Section 16(2)(d)(v) local authorities; and Section 16(2)(d)(vi) planning. Section 16(2)(e) the chief executive of the Export Processing Zones Authority under the Export Processing Zones Act ( Cap. 517 ); Section 16(2)(f) the chief executive of the Export Promotion Council; and Section 16(2)(g) six members appointed by the Cabinet Secretary. Section 16(3) A person shall not be appointed as the Chairperson or a member under subsection (2)(g) unless he has distinguished himself in the field of law, economics, commerce, industry or management.

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§ 17KENYA INVESTMENT AUTHORITY - 17. Term of office of Chairperson, appointed membersProvision

The Chairperson or a member appointed under section 16 (2)(g) shall hold office for three years and is eligible for reappointment.

Section 17. Term of office of Chairperson, appointed members Section The Chairperson or a member appointed under section 16 (2)(g) shall hold office for a period of three years and shall be eligible for reappointment.

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§ 18KENYA INVESTMENT AUTHORITY - 18. Resignation of Chairperson, appointed membersProvision

The Chairperson may resign by written resignation addressed to the President; a member appointed under section 16(2)(g) may resign by written resignation addressed to the Cabinet Secretary.

Section 18. Resignation of Chairperson, appointed members Section 18(1) The Chairperson may resign by written resignation addressed to the President. Section 18(2) A member appointed under section 16 (2)(g) may resign by written resignation addressed to the Cabinet Secretary.

Section 18Verify source

§ 19KENYA INVESTMENT AUTHORITY - 19. Removal of Chairperson, appointed membersOffence

The President may remove the Chairperson, and the Cabinet Secretary may remove a member appointed under section 16(2)(g), on any of the grounds listed in subsection (2).

Section 19. Removal of Chairperson, appointed members Section 19(1) The President may remove the Chairperson, and the Cabinet Secretary may remove a member appointed under section 16 (2)(g), on a ground set out in subsection (2). Section 19(2)(a) the Chairperson or member is absent without reasonable excuse from three consecutive meetings of the board of the Authority of which he has had notice; Section 19(2)(b) the Chairperson or member becomes bankrupt; Section 19(2)(c) the Chairperson or member is convicted of an offence involving dishonesty, fraud or moral turpitude; Section 19(2)(d) the Chairperson or member is incapacitated by reason of prolonged physical or mental illness from performing his duties as the Chairperson or member; or Section 19(2)(e) the Chairperson or member is otherwise unable or unfit to discharge the functions of his office.

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§ 20KENYA INVESTMENT AUTHORITY - 20. Allowances of board membersProvision

The Authority must pay board members allowances and expenses as determined by the Cabinet Secretary.

Section 20. Allowances of board members Section The Authority shall pay the members of the board of the Authority such allowances and expenses as are determined by the Cabinet Secretary.

Section 20Verify source

§ 21KENYA INVESTMENT AUTHORITY - 21. Procedures of the boardProvision

The board's business and affairs must be conducted according to the Third Schedule; except as provided in that Schedule, the board may regulate its own procedure.

Section 21. Procedures of the board Section 21(1) The business and affairs of the board of the Authority shall be conducted in accordance with the Third Schedule. Section 21(2) Except as provided in the Third Schedule, the board of the Authority may regulate its own procedure.

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§ 22KENYA INVESTMENT AUTHORITY - 22. Secretary of boardProvision

The managing director of the Authority must be the secretary of the board of the Authority.

Section 22. Secretary of board Section The managing director of the Authority shall be the secretary of the board of the Authority.

Section 22Verify source

§ 23KENYA INVESTMENT AUTHORITY - 23. Managing director of AuthorityProvision

The board of the Authority must appoint a managing director (the chief executive) responsible for day-to-day running; the board determines the managing director's terms and conditions; a person may not serve as managing director for more than eight years.

Section 23. Managing director of Authority Section 23(1) The board of the Authority shall appoint a managing director who shall be the chief executive of the Authority and who, subject to the directions of the board, shall be responsible for the day to day running of the Authority. Section 23(2) The terms and conditions of employment of the managing director shall be determined by the board of the Authority. Section 23(3) A person shall not serve as the managing director for more than eight years.

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§ 24KENYA INVESTMENT AUTHORITY - 24. Other staffProvision

Section 24. Other staff Section 24(1) The Authority may appoint such other staff in addition to the managing director as the Authority considers advisable. Section 24(2) The terms and conditions of employment of the staff of the Authority, other than the managing director, shall be determined by the Authority.

Section 24Verify source

§ 25KENYA INVESTMENT AUTHORITY - 25. ImmunityProvision

Members of the Authority's staff, board members, and committee members are exempt from personal liability for acts or omissions done in good faith under this Act.

Section 25. Immunity Section No member of the staff of the Authority or member of the board of the Authority or of a committee of the board shall be personally liable for anything done or omitted in good faith under this Act.

Section 25Verify source

Part V

NATIONAL INVESTMENT COUNCIL

§ 26NATIONAL INVESTMENT COUNCIL - 26. Council establishedProvision

The Chairperson shall be the President or a Cabinet Secretary designated by the President.

Section 26. Council established Section a Chairperson who shall be the President or a Cabinet Secretary designated by the President;

Section 26Verify source

§ 27NATIONAL INVESTMENT COUNCIL - 27. FunctionsProvision

Lists functions: advising the Government and agencies on increasing investment and growth; promoting public–private cooperation on economic and investment policy; monitoring the economic environment and development to identify impediments or areas left behind and proposing incentives; and consulting public and private sector persons for views on promoting investment and development.

Section 27. Functions Section 27(1)(a) to advise the Government and government agencies on ways to increase investment and economic growth in Kenya; and Section 27(1)(b) to promote co-operation between the public and private sectors in the formulation and implementation of government policies relating to the economy and investment. Section 27(2)(a) monitor the economic environment to identify impediments to investment and economic growth and to propose incentives to promote investment and economic growth; Section 27(2)(b) monitor economic development in Kenya to identify areas that may not be benefiting from economic development; and Section 27(2)(c) consult with persons from both the public and private sectors to obtain views and suggestions for promoting investment and economic development.

Section 27Verify source

Part VI

MISCELLANEOUS

§ 28MISCELLANEOUS - 28. Offence, misleading Authority,etc.Offence

Knowingly submitting false or misleading information to the Authority to obtain an investment certificate or assistance is an offence punishable on conviction by a fine up to one million shillings or imprisonment up to two years or both.

Section 28. Offence, misleading Authority,etc. Section A person who knowingly submits false or misleading information to the Authority for the purposes of obtaining an investment certificate or obtaining any assistance from the Authority is guilty of an offence and is liable, on conviction, to a fine not exceeding one million shillings or to imprisonment for a term not exceeding two years or to both.

Section 28Verify source

§ 29MISCELLANEOUS - 29. Offence, improperly divulging information acquired under ActOffence

It is an offence for a person, without lawful excuse, to divulge information acquired while acting under the Act; on conviction they may be fined up to one million shillings or imprisoned up to two years or both.

Section 29. Offence, improperly divulging information acquired under Act Section A person who, without lawful excuse, divulges information acquired in the course of acting under this Act is guilty of an offence and is liable on conviction, to a fine not exceeding one million shillings or to imprisonment for a term not exceeding two years or to both.

Section 29Verify source

§ 30MISCELLANEOUS - 30. RegulationsAmendment

The Cabinet Secretary may make regulations to carry out the Act, including amending the Second Schedule, prescribing categories of employees for work permits, and prescribing procedures for vetting investors.

Section 30. Regulations Section 30(1) The Cabinet Secretary may make regulations generally for the better carrying out of the provisions of this Act. Section 30(2)(a) amending the Second Schedule; Section 30(2)(b) prescribing the categories of employees to be issued with work permits; Section 30(2)(c) prescribing procedures for the vetting of investors.

Section 30Verify source

§ 32MISCELLANEOUS - 32. General authority, etc. under repealed Act continuedRepeal

Section 32. General authority, etc. under repealed Act continued Section 32(1) A general authority issued under the Investment Promotion Centre Act before that Act is repealed by section 31 shall be continued as an investment certificate under this Act. Section 32(2) An application for a general authority under the Investment Promotion Centre Act (Repealed) before that Act is repealed by section 31 shall be continued as an application for an investment certificate under this Act.

Section 32Verify source

Legislative relationships

3 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

2 instruments

an investment certificate subject to any restrictions prescribed in the regulations
Section 9
Export Processing Zones Authority under the Export Processing Zones Act
Section 16

G–M

1 instrument

Kenya Citizenship and Immigration Act
Section 13

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