The Government of Kenya recognizes the critical role investments play in economic development and realization of Vision 2030 objectives. To this end, Kenya has streamlined business licensing regimes and adopted online investment facilitation portals to ensure faster registration and approval of investment new projects. The Kenya Investment Authority (KenInvest) is the lead agency on investment matters. Established by an Act of parliament, Investment Promotion Act, 2004 cap 485 B of the laws of Kenya. The Authority’s core mandate as spelt out in the act is to promote and facilitate growth of both local and foreign investments in Kenya. The act allows foreign investments minimum investment threshold of USD100,000 and USD 10,000 minimum for local investment.

KenInvest set up a One Stop Center (OSC) in 2017 under the Investment Facilitation department to provide for timely and transparent processing of investment applications and approvals required. The OSC brings on board officials from relevant government agencies involved in investment facilitation such as the Registrar of Companies (Business registration Services), Kenya Revenue Authority, Ministry of Lands, NHIF and NSSF, Immigration Services Department and NEMA. The Authority is progressively embracing and integrating digital facilitation services to ensure investors can place their applications for new investments from all over the world and be able to access some of the requisite documentations online. The Kenya Investment Authority has developed an online portal (http://eregulations.invest.go.ke/), to further showcase investment procedures in the country; and increase accuracy and transparency on access to relevant information and data by investors.

The Kenya investment environment is governed by other laws as well, affecting investment. For instance, The Kenya Constitution 2010, the Company Act 2015, Business Registration Act 2015, Foreign Investment Protection Act (FIPA), The Public Private Partnerships (PPP) Act 2013, The Insolvency Act 2015, among other laws. Details of this laws can be accessed from http://www.klrc.go.ke/

Since independence, in 1963; the Government of Kenya has formulated strategic policies, legislations and developmental blue prints that focus on investment growth and support. The Kenya Vision 2030 is the latest blue print to guide the country on developmental issues. These include export compensation schemes to duty draw backs and remission, import substitution and manufacturing under bond. These schemes were succeeded by import substitution, Industrial policies on export processing zones, and other export promotion programmes. Currently, the Vision 2030 drives the country’s developmental objectives. The advent of devolution in 2010 also created more investment opportunities for investors seeking to locate in the 46 Counties. There is also work in progress towards development of a Kenya National Investment Policy (KIP). The KIP is envisaged to be a comprehensive and harmonized policy to guide attraction, facilitation, and retention of private investments. It will create an institutional framework that allows for coordination for more efficient investment promotion and facilitation as well as creating a favorable investment climate. In addition, Kenya subscribes to African Union agenda 2063 and the United Nations Sustainable Development Goals (SDGs) which are designed to ensure that development activities are conducted with a long-term view towards sustainability and continued social development of her citizens.

Kenya’s investment environment is fully liberalized. Foreign investors can invest up to 100% ownership; except in securities, Insurance, Power and Lighting and any other identified sectors by government that may be deemed to pose security risk to the country. The attainment of sustained growth and development is feasible through promotion of local and foreign investments.

There are no regulations restricting joint venture arrangements between Kenyans and foreigners or prohibiting the acquisition of Kenyan firms by foreign-owned firms. Nonetheless, there are some restrictions on investment in companies listed on the Nairobi Securities, the insurance sector, and the KPLC. The Kenya Communications Act No 2 of 1998 and Kenya Information and Communications (Amendment) Act 2008 limit foreign investments in the communications sector to 30%.

Protection of private property, is enshrined in the Constitution 2010. Private property may be compulsorily acquired by the government only for reasons of public safety, public interest or security; but with prompt and full compensation. The court of law (Industrial and Commercial Court) provides for arbitration mechanisms. Foreign investors also have the option to seek recourse from the International Centre for Settlement for Investment Disputes (ICSID) for which Kenya is a member Recourse to ICSID for arbitration requires the consent of both parties involved in the dispute. The Investment Disputes Convention Act (1967) stipulates that awards granted by the ICSID Arbitration Tribunal are binding in Kenya and have the same validity as final decrees of the High Court.

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The government has also taken specific steps to promote investment in the country. Some of these include:

1. Establishment of South Sudan Investment Authority (SSIA);
2. Development of investments laws which spell out the investment guidelines in the country;
3. Equal treatment and opportunity for local and international investors; and Enactment of specific laws that support investment by making provisions for attractive fiscal regimes, protection of industrial and intellectual property rights, credible guarantee of legal security and investment stability, repatriation of profits and dividends, custom duties exemptions, as well as reduced red tape and bureaucracy.

The specific investment principles include:

1. Policy of non-discrimination - foreign investors can invest in and run businesses in any sector in Southern Sudan;
2. Guarantees against expropriation - The government shall not nationalize any enterprise. Further, no investor will be compelled (by law or otherwise) to cede any part of investment capital;
3. Protection of Intellectual Property laws - The government shall protect all intellectual property and rights of all persons and investors. All trademarks, copyrights, patents, etc. will be enforced;
4. Access to Public Information - Investors have open and direct access to all laws and decisions of courts, other adjudicative bodies and to any public information;
5. Repatriation of capital, profits and dividends - investors have the right to freely repatriate their money in freely convertible currency or dispose of it in any manner they deem fit, subject to tax and other lawful obligations; and
6. Dispute Resolution - Any aggrieved investor has recourse to the courts of Southern Sudan which has jurisdiction over business disputes. Parties to a dispute are also free to specify alternative dispute resolution mechanisms they may agree upon. Any investor in dispute with the Government of South Sudan has recourse to internationally accepted dispute resolutions mechanisms.

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Rwanda has comprehensively improved its business environment through enactment of the Investment Code 2015 on Investment and Export Promotion and Facilitation as the main law governing the country’s investment regime. The Investment Code calls for equal treatment of foreign and local investors. The Code also outlines the incentives available to investors who qualify. Article 6 of the Code provides that the government is responsible for protecting invested capital and shall not acquire the rights of an investor … no action to expropriate an investor’s property in public interest shall be taken, unless the investor is given fair compensation in accordance with the laws. The specificity of this provision is comforting for foreign investors who fear loss of their investment at the hands of the Rwandan government.

In 2008, Rwanda established Rwanda Development Board (RDB) as a successor to the Rwanda Investment and Export Promotion Agency (RIEPA). The RDB is a multi-institutional body which was created by bringing together eight existing related public institutions and agencies to provide investment-related services under one roof and reporting directly to the office of the President. These include Rwanda Investment & Export Promotion Agency; Centre for Support to Small and Medium Enterprises; Rwanda Commercial Registration of Service Agencies; Environmental Impact Assessment (EIA) Unit; Privatization Secretariat; Rwanda Office of Tourism and National Parks; Rwanda Information and Communication Technology Authority; and Human and Institutional Development Agency (HIDA)[1].

RDB is Rwanda Government’s specialized agency operating as One Stop Centre for investment. It is tasked with the mission to fast track economic development in Rwanda.  Its mandate is to enable private sector growth towards the transformation of Rwanda into a hub for global business, investment, and innovation. RDB invites, receives, and facilitates international investors to take full advantage of Rwanda’s sustained high economic growth, robust governance, investor-friendly climate, accessibility to markets within the region, and a range of well-planned projects for direct investment.

Investors (local or foreign) who choose to register with the Rwanda Development Board (RDB) can apply for additional benefits. An Investment Code adopted in 2015 specifies all fiscal incentives available to investors depending on the sector and amount invested.  The benefits provided to holders of investment certificates consist mostly in access to facilitation services, fiscal incentives, and the entitlement to three work and residence permits for foreign citizens for an investment of at least two hundred and fifty thousand (USD 250,000), investment protection and guarantees for the repatriation of funds.

Through Company Law (2017) that governs companies, their incorporation, registration, functioning, winding up and other related matters, Rwanda provides a foundation for investor protection. This is complemented by Investment Code (2015) that has important protections of particular concern to foreign investors. This makes Rwanda one of Africa’s most open FDI regime, with no restrictions on FDI entry and establishment. All foreign investments are allowed without screening or restriction of amount or sector, and foreign investors are granted national treatment for most intents and purposes. A positive element per se, this high degree of openness makes it all the more important that other regulations (relating to public health, consumer interests, environmental protection, etc.) be properly established and enforced

Investors (local or foreign) who choose to register with the RDB can apply for additional benefits. The Investment Code specifies all fiscal incentives available to investors depending on the sector and amount invested. 

Article 42 of the Constitution specifies that “every foreigner legally residing in the Republic of Rwanda shall enjoy all rights save those reserved for nationals as determined under this Constitution and other laws.” The Constitution also grants protection over private property rights, which can be expropriated only for reasons of public interest and following fair and prior compensation. In addition, holders of investment certificates are entitled to fair compensation in a convertible currency in case of expropriation. They also benefit from the guarantee that the compensation will be free of any tax or duty and freely transferable overseas.

Kigali International Arbitration Centre (KIAC) was created by an act of Parliament in 2011 at the initiative of the Private Sector Federation in partnership with the Government as an independent body. The aim of KIAC is to strength the Capacity of Economic Operators in Rwanda to resolve their disputes themselves without need to go to courts. Investors can also utilize the Multilateral Investment Guarantee Agency (MIGA) to address investment disputes.

[1]Represented by a Unit of Human Resource and Institutional Capacity Development

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The Government has taken significant measures and reforms to liberalize its economy and encourage both foreign and domestic local private investment to realize National Development Vision 2025. The vision spells out national long term development goals priorities and directions, and aims amongst other things to transform Tanzania from low productivity agriculture economy to semi industrialized highly productive agriculture activities. Some of the notable reforms in Tanzania since 1986 include, the reduction of the budget deficit, monetary control, liberalization of the trade regime, removed most price controls, eased restrictions on the marketing of food crops, freed interest rates, and initiated a restructuring of the financial sector. The economic reforms implemented by the government have greatly boosted a better investment climate by encouraging private sector participation and attracting FDI.

On account of its political structure – Mainland Tanzania and Zanzibar – Tanzania has two investment regimes. As a result, the country has two investment policies, namely: The National Investment Promotion Policy (1996) and the Zanzibar Investment Policy (2004). It also has two regulatory frameworks which are National Investment Act 1997 for mainland Tanzania and Zanzibar Investment and protection Act 2004 and two investment promotion agencies Tanzania investment Centre for mainland Tanzania and Zanzibar Investment Promotion Authority for Zanzibar. 

The Government is committed to improve business environment for the private sector to operate and stimulate rapid expansion in local and foreign private investment. The investment policies have underscored the need for maximum mobilisation, utilisation of domestic capacity, and the promotion of exports of goods and services. Policy reforms undertaken since 1980s have to a great extent contributed in attracting a considerable amount of foreign resources in the form of Foreign Direct Investment (FDI), Official Development Assistance (ODA) and Remittances to argument limited domestic savings and bring with them finance, managerial skills, technology, marketing experience for the development, and to create a transparent legal framework that facilitates the promotion and protection of all investment. 

The Tanzania Investment Act (1997), Cap 38 is the principal law guiding investment activities in Mainland Tanzania. Section 4 of the Act established the Tanzania Investment Centre (TIC) which is the principal agency which facilitate, encourage and promote investment. The Centre under the Ministry of Industry, Trade and Investment. The Ministry of Industry, Trade and Investment is mandate to formulate industrial, trade and investment policies and strategies. The mission is to create an enabling environment for the sustainable development of industry, trade and investment.  

The TIC’s mandate includes both investment facilitation and promotion. The functions of the TIC include, but are not limited to, assisting all investors both foreign and local, to obtain all necessary permits, licenses, approvals, consents, authorizations, registrations, and other matters required by law for a person to set up and operate an investment under One Stop Centre. The Centre issues certificate of incentives to eligible investors based on the established laws and regulations. The Certificate of Incentives provides investors with a package of fiscal and non-fiscal incentives. The minimum investment to qualify for and obtain a Certificate of Incentives is USD100,000 for projects that are wholly owned by Tanzanian citizens and USD 500,000 for projects that are wholly owned by foreign investors or if a joint venture. Other than this difference in financial thresholds, the Investment Act does not appear to discriminate against foreign investors in favor of domestic investors. Incentive guarantees available to holders of Certificates of Incentives – both foreign and domestic.

In 2014 the government introduced strategic Status Investors category which comprises of investors whose investment is above USD 50 million foreigners and USD 20 million for local investor, the contribution of the project in terms of creating employment opportunities, new and innovative technology to be introduced by the prospective strategic investment project, the extent to which the project brings capacity to manufacture products for experts and the earning of foreign exchange and when the project is located in Special Economic Zones and geographically disadvantaged region. 

In order to strengthen and expedite the facilitation of investment services and its image as a “One-Stop Center” Tanzania Investment Centre pulls together under one roof MDAs necessary for investment and investors handling. The agencies that have permanently stationed staff at the TIC include Ministry of Lands, Housing and Human Settlement Development Ministry of Labor, Employment, and Youth Development; Ministry of Industry, Trade and Investment; Tanzania Revenue Authority; the Immigration Department; Business Registration and Licensing Agency (BRELA); and National Environmental Management Committee. Others are OSHA, Tanzania Bureau of Standards, AQRB (Architectural and Quantitative Registration Board) and Tanzania Food and Drugs Authority (TFDA).

To formalize business in Tanzania, one has established a company with Business Registration and Licensing Agency (BRELA), established by the Executive Agencies Act. 1997 under the Ministry of Industry, Trade and Investment. Investor will also have to obtain Tax Identification Number which currently is same number as the certificate incorporation/compliance and other licensing from regulatory authorities depending on the type of business for example tourism, energy, mining etc.

In view of continuing to improve easy of doing business, the Ministry of Industry Trade and Investment has come up with a Blue Print for Regulatory Reforms to Improve Business Environment. The Blue Print is aimed to ensure that private sector as engine of economic inclusive growth operates under friendly and competitive environment. Tanzania Investment Environment is governed by other laws affecting facilitation and protection such PPP Act 2014, EPZA and SEZ.

In addition, the Government signed new bilateral investment agreements (BITs), which are aimed at promoting and protecting new and existing investments. It also signed double taxation treaties (DTTs) with various countries. As of now, the government of Tanzania has already signed BITs with the Governments of Germany, Italy, Finland, South Korea, the Netherlands, United Kingdom, Sweden, Denmark, Canada, Switzerland, Thailand, China, Oman and Kuwait. On the other hand, the Government of Tanzania has entered into DTTs with the Governments of United Kingdom, Italy, Sweden, Norway, Denmark, Finland, South Korea, Switzerland, Oman, Malaysia, Thailand, Canada, the Netherlands, and Kuwait. Also, Tanzania is a member of Multilateral Investment Guarantee Agency (MIGA), International Centre for Settlement of Investment Disputes (ICSID) and is signatory to the United Nations Commission on International Trade Law (UNCITRAL).

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