MasiboLaw LLP

Kenya is projected to be the third most lucrative investment destination in the world in 2024. With a bulging tech space, Kenya is likely to witness a huge influx of venture capitalists and venture capital investments in this new year. Additionally, with market saturation hitting tech-heavy markets like the US and Europe, new investors are likely to seek markets with a huge potential for growth and ease of entry like Kenya.

Investment oftentimes requires the movement of investors into the country to meet prospective founders and to get a feel of the local market and population. Investors must acquire an investor permit to lawfully do business in Kenya but can enter the country informally as tourists at first. Additionally, Kenya has officially been declared a visa-free country, and applying for a visa is being replaced with acquiring an Electronic Travel Authorization (ETA) which will identify you as you get into Kenyan soil.

How to get an Electronic Travel Authorization (ETA) in Kenya?

1. Visit the official ETA website.
2. Make an application and attach the following documents; a valid passport for at least six (6) months after your planned date of arrival into Kenya with at least one blank page, a selfie or passport-type photo, contact information, details of arrival and departure itinerary, accommodation booking confirmation and your credit card, debit card, applepay or other means of payment.

3. Pay the application fee of $30 US Dollars which is approximately 4500 Kenyan shillings.

4. If approved, you will receive the ETA within 72 hours.

It may be smart to get into the country as a tourist and then apply for an investor permit. This permit is otherwise known as a Class G entry permit and it allows both local and foreign nationals to operate a business, trade or consultancy in Kenya. The benefit of getting this permit is that for a maximum of two years, your business partners and employees may also receive Class C, F or G permits while your management and technical team can receive a class D entry permit.

However, to acquire the permit, you will need the following;

1. An original cover letter addressed to the Managing Director of Kenya Investment Authority indicating the goals, actions, and anticipated results of your company, which you will hopefully have registered by then. This serves as an introduction between you as an investor and the Kenya Investment Authority.
2. Copies of the memorandum and articles of association which show the legal status and structure of your Company.
3. A copy of a certificate of incorporation for local companies which attests to a business’s legal registration and operating permission in a particular jurisdiction. Key details about the company like its name, goals, share capital, directors and shareholders are also included.
4. A copy of a certificate of compliance for a branch of a foreign company. A branch office is unique on its own and is considered a foreign company under the Companies Act, 2015 unlike a subsidiary, which is treated like a local company. The certificate of compliance is evidence that you have met your tax obligations.
5. Proof of Investment. This may take the form of a local or international bank statement, equipment, and assets that are on hand, import declaration forms or receipts attesting to the investor’s purchase of assets for that sum, or any other proof showing that you have the required minimum investment amount of 1 million Kenyan shillings for local investors or 100,000 US Dollars for foreign investors.
6. An original Investment Application Form – This form includes information on the applicant, the proposed business site, the company’s shareholders and directors, a description of the project and the industry, information on employment, Investment and Financing plan, and the applicant’s declaration and signature.
7. A copy of your National Passport. The passport is proof of the identity of the investor, their citizenship status, and past travels.
8. Two recent colored passport-size photographs.

In conclusion, most VCs and Investors usually enter the country as tourists but once you have settled in and found something worth investing in, it is crucial to acquire an investor permit so that you do not get into conflict with the Government. Additionally, it is important to get the Electronic Travel Authorization (ETA) well before your travels to avoid encountering problems at the immigration desk.

The writer is a lawyer who specializes in offering legal services to people in technology, in case you need further assistance, don’t hesitate to contact him at info@masibolaw.co.ke