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[ESTABLISHING A BUSINESS ENTITY IN KENYA]
Special Business/ Investment Visa The East African nations have taken significant strides towards obviating the necessity for their respective citizens to obtain work permits as a precondition for engaging in economic activities within the regional community. An exemplar of this collaborative endeavor is evident in the case of Rwanda and Kenya, where their nationals enjoy unencumbered access to employment opportunities within each other's sovereign territories, thereby negating the requirement for work permits. In the Kenyan context, the process of securing work permits is generally characterized by its procedural simplicity and is delineated within the statutory framework articulated in the Kenya Citizenship and Immigration Act. The issuance of these permits is expressly regulated by Section 40 of the aforementioned Act. It is noteworthy that two principal categories of permits are dispensed, namely work permits and residence permits, both being subject to specified conditions. To elucidate this point, a Class K residence permit is exclusively conferred upon individuals who can substantiate a guaranteed annual income exceeding the threshold of twenty-four thousand United States Dollars (USD 24,000) or its equivalent in Kenyan Shillings. Moreover, the statutory framework accommodates countries whose citizens are exempt from visa requirements when entering Kenya, as enshrined in the Kenya Citizenship and Immigration Regulations of 2012. In consonance with Section 13 of the Investment Promotion Act, holders of an Investment Certificate are accorded certain entitlements, which encompass the allocation of three Class A entry permits designated for management or technical personnel and three Class H, I, or J entry permits earmarked for proprietors, shareholders, or partners. It is imperative to
underscore that the validity period of these permits is limited to a duration of two years. Work Permits issued under the Kenya Citizenship and Immigration Act vary depending on the profession/work of the investor: They are contained in the 7 th Schedule and are: i. Class A – Prospecting and mining ii. Class B- Agriculture and Animal Husbandry iii. Class C- Prescribed profession iv. Class D- Employment v. Class F- Specific manufacturing vi. Class G- specific trade/business/consultancy vii. Class I- Approved religious or charitable activities viii. Class K- Ordinary residents ix. Class M- Refugees Those applying for the permits are required to pay a non-refundable processing fee and a 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. Remittance of funds out of Kenya The dispensation of investment funds within the jurisdiction of Kenya is characterised 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
ILN Corporate Group – Establishing a Business Entity Series
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