A Kenya investment certificate is an official certificate issued by the Kenya Investment Authority, commonly known as KenInvest, to qualifying investors. It forms part of Kenya’s investment facilitation framework and helps investors navigate the licences, permits and government services needed to establish and operate a business.
For foreign investors, it can also support access to certain immigration and other facilitation services. An investment certificate has a separate legal purpose from company registration, immigration permits and tax incentives.
What Is a Kenya Investment Certificate?
A Kenya investment certificate is issued under the Investment Promotion Act, 2004 to investors whose proposed investments meet the applicable requirements.
The statutory investment threshold is USD 100,000 for a foreign investor and KES 1 million for a local investor.
The proposed investment must also demonstrate potential benefit to Kenya. Depending on the circumstances, KenInvest may consider factors such as employment creation, skills and technology transfer, contribution to government revenue, foreign exchange generation, use of local raw materials, value addition and ICT development.
The investment threshold is therefore important, but it is not the only consideration in the certification process.
Who Is Eligible for an Investment Certificate?
Both local and foreign investors may apply for an investment certificate.
A foreign investor can be a non-Kenyan individual, a partnership in which the controlling interest is held by non-Kenyans, or a company incorporated outside Kenya that is investing in Kenya.
The applicant generally needs to demonstrate the nature of the proposed investment, the business activity involved and the capital committed to the project.
Where a foreign investor is establishing a Kenyan company, the investment certificate sits alongside company incorporation and other regulatory requirements.
What Are the Benefits of a Kenya Investment Certificate?
Facilitation of licences and approvals
One of the main benefits is assistance with obtaining licences required to establish and operate the investment.
Under the current investment facilitation framework, a holder of an investment certificate can benefit from the initial issuance of additional licences required for the investment, except health, security and environmental certificates, for a maximum period of one year.
The certificate does not remove sector-specific licensing requirements. The investor must still satisfy the relevant authority’s requirements.
Support with immigration and Class G permits
An investment certificate also provides specific immigration-related benefits for qualifying investors.
A registered investor holding an investment certificate is entitled to three Class C, F or G entry permits for owners, shareholders or partners, and three Class D entry permits for management or technical staff. These permits are issued for a maximum period of two years.
A Class G permit is relevant to a foreign national intending to engage in a specific trade, business or consultancy in Kenya. KenInvest can facilitate the immigration process, including issuing a recommendation to the Directorate of Immigration Services. The permit itself still requires a separate application and compliance with immigration requirements.
For more information, see our Class G Work Permit in Kenya application guide.
One Stop Centre services
KenInvest’s One Stop Centre helps investors coordinate with government agencies involved in establishing and operating an investment.
It can provide information and facilitate matters including immigration, taxation, environmental requirements and other regulatory services. Each relevant agency may still have its own application and approval requirements.
Does an Investment Certificate Give You Tax Incentives?
Not automatically.
A Kenya investment certificate does not, by itself, create a tax exemption, tax holiday or other tax incentive. Tax incentives arise under separate tax laws and programmes, and the investor must meet the requirements applicable to the particular incentive.
KenInvest can facilitate applications for tax and customs exemptions by issuing an exemption recommendation letter where the investor qualifies under the relevant framework. This is different from the investment certificate itself creating the exemption.
Depending on the investment, available incentives can include investment deductions, EPZ or SEZ incentives and sector-specific tax reliefs. The investor’s structure, sector and location can also affect the applicable tax treatment.
For assistance with these issues, see our tax advisory and structuring services.
How Do You Apply for a Kenya Investment Certificate?
The process starts with registering as an investor with KenInvest through the Kenya Investment Single Window. Once registered, the investor can request an investment certificate and provide proof of the required investment.
The process generally involves:
- Registering as an investor with KenInvest and providing information about the investor, ownership and proposed investment.
- Requesting the investment certificate and submitting the required supporting documents, such as the investment application form, incorporation or registration documents, shareholder and director details, and proof of investment.
- Providing evidence of the investment, which can include a bank statement, equipment or assets acquired, import documentation or other supporting evidence.
- KenInvest assessing the application and requesting clarification or additional information where necessary.
- Issuance of the investment certificate once the applicable requirements have been met.
The current InvestKenya portal provides an Investment Certificate online service through the Kenya Investment Single Window.
The documents and online requirements can change, so investors should confirm the current requirements before submitting an application.
What Does a Kenya Investment Certificate Not Do?
An investment certificate does not replace the other legal and regulatory requirements that may apply to an investment.
It does not:
- replace company or foreign company registration;
- automatically grant every immigration permit without a separate application;
- automatically create tax exemptions or tax holidays;
- remove sector-specific licensing requirements; or
- replace environmental, health, county or other approvals required for the investment.
A foreign investor may therefore need to deal separately with business registration, immigration, tax, sector-specific licences and other regulatory requirements.
The certificate is one part of the wider process of establishing and operating an investment in Kenya.
Are Kenya’s Investment Laws Changing?
Kenya is pursuing reforms to its investment framework, including proposals aimed at improving investment facilitation and strengthening investor protection.
However, proposed reforms should not be treated as current law until they have been enacted and commenced. The Investment Promotion Act, 2004 remains the principal statutory framework governing investment certificates at the time of writing.
Investors making a significant investment should confirm the law and administrative requirements applicable when they apply.
Get Legal Advice Before Investing in Kenya
Planning to invest in Kenya? Do not treat the investment certificate as the whole process.
Your business structure, immigration status, tax position, licences and eligibility for investment incentives can affect how you set up and operate your investment.
Speak to our foreign investment lawyers before you commit capital. We can help you identify the legal and regulatory issues that should be addressed before you proceed.
Frequently Asked Questions
How long does it take to get a Kenya investment certificate?
The processing time depends on the application and whether KenInvest requires additional information or clarification. Investors should confirm the applicable timeframe when submitting an application.
Can a foreign investor apply for an investment certificate for a proposed investment?
Yes. The Investment Promotion Act allows a foreign investor who intends to invest in Kenya to apply for an investment certificate. The application must satisfy the applicable requirements and meet the statutory investment threshold.
Can an investment certificate be revoked?
Yes. The Kenya Investment Authority may revoke an investment certificate if it was issued on the basis of incorrect information, obtained through fraud, or if a condition of the certificate was breached.
Before revoking the certificate, the Authority must give the certificate holder 30 days’ written notice and an opportunity to make representations. An investor dissatisfied with a revocation decision can seek a review or appeal in accordance with the applicable procedure.