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[ESTABLISHING A BUSINESS ENTITY IN KENYA]
vii.
Class I- Approved religious or charitable activities
Kenya boasts a dynamic economic structure characterized by a controlled floating exchange rate regime, underpinned by a capital account that has been liberalized to promote economic openness and international trade. The Central Bank of Kenya (CBK) wields volatility control mechanisms judiciously to modulate short-term price fluctuations within the financial markets. These measures are instrumental in maintaining financial stability and fostering investor confidence by mitigating undue volatility and price swings that might otherwise disrupt the country's economic equilibrium. In essence, Kenya's commitment to facilitating the free flow of investment funds while concurrently adhering to internationally recognized protocols for combating financial crimes is emblematic of its standing as an open and responsible participant in the global economic arena. These legal and regulatory frameworks reflect the nation's ongoing dedication to creating an environment that fosters both economic growth and security. Under the auspices of the Foreign Investments Protection Act, Cap 518, provision is made for the expeditious transfer of profits, as elucidated in Section 7 of the Act. An entity in possession of a valid certificate, issued in accordance with the statutory provisions, is afforded the prerogative to transfer monies out of the Kenyan jurisdiction in the approved foreign currency, in conformity with the prevailing exchange rates. The permissible transfers encompass the following categories: (a) The profits, whether capitalized or not, following the imposition of applicable taxes, emanating from or attributed to the investments held in foreign assets. (b) The capital quantum stipulated within the certificate.
viii.
Class K- Ordinary residents
ix. Class M- Refugees Those applying for the permits are required to pay a nonrefundable processing fee ad yearly issuance fee outlined in the 9 th schedule. The investor must indicate that he has at his full and free disposition sufficient capital and other resources for the purpose. Remitting of funds out of Kenya The dispensation of investment funds within the jurisdiction of Kenya is characterized by a regime that facilitates the unfettered conversion and transfer of such financial resources, both into and out of the country. This pivotal aspect of the Kenyan financial landscape is emblematic of its commitment to fostering a conducive environment for investment activities. Nonetheless, in alignment with the global imperatives of combating money laundering and the inadvertent funding of terrorist organizations, the legal framework in Kenya incorporates stringent provisions. In strengthening its fight against money laundering, Kenya has enacted the Proceeds of Crime and Anti Money Laundering Act No.9 of 2009 which under section 12 regulates the conveyance of monetary instruments in and out of Kenya. Specifically, individuals entering or departing the Kenyan territory while in possession of a cumulative sum exceeding the threshold of ten thousand United States Dollars (USD $10,000), or its approximate equivalent of one million, three hundred and twenty thousand Kenyan Shillings (KES 1,320,000), in physical currency are mandated by Kenyan law to declare such assets to the competent customs authorities
ILN Corporate Group – Establishing a Business Entity Series
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