Investment Promotion Act

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

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

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 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; Se...

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

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 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 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 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 Sec...

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...

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-en...

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 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 m...

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.

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.

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 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.

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 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.

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

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.

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

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 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 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 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 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.