Doing Business in Kenya - RSM International

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Class K is for persons who have an assured income derived from sources outsideand undertakes not to accept paid employment of any kind. One must providedocumentary proof of assured income. Fee applicable is Shs 50,000 per year.Class L is issued to retired residents in Kenya. The applicant should have had aresidence certificate for a continuous period of not less than 10 years. Fee payablefor this permit is Shs 25,000 per year.Class M is issued to Conventional Refugees. One must present recognition lettersfrom UNHCR and the Department of Refugee Affairs. Permit is issued gratis.Passes are issued to Non-Kenyans who wish to stay temporarily in Kenya for reasonsspecified in such passes.A pupil’s pass is issued to person(s) seeking to enter and remain in the countryfor the purpose of receiving education or training at an educational or trainingestablishment within the country by which he/she has been accepted as a student/pupil. One must fill and sign the requisite application form (Form 8), submit a letterfrom the school stating the course and course duration, copy of the passport, twopassport size photos, a commitment letter from parent/legal guardian/sponsor. Thefee for such a pass is Shs 2,000 per year.For a dependant pass, the applicant must be a Kenyan, or holder of a valid entrypermit, or an exempted person under the Privileges and Immunities Act (Cap 179).The applicant must fill and sign the requisite application form and provide a copy ofthe national passport of the dependant, two passport size photos of the dependantand copy of birth certificate or marriage certificate for immediate family members.The fees payable for a dependant pass is Shs 1,000 for immediate (nuclear) familymembers and Shs 5,000 for other dependants.Special Pass is issued to person(s) given specific employment by a specific employerfor a short duration not exceeding 3 months. One must submit an application formdully filled and signed, copy of the national passport, two passport size photos, letterfrom institution/applicant (employer) and clearance from regulatory bodies (medicaland dentist board, pharmacy and poisons board, engineering board, NGO council,Ministry of Information). The fee for special pass is Shs 2,000 for filming crew andShs 12,000 for the others.5.2.2 Dual CitizenshipThe Kenya Citizenship and Immigration Act 2011, allows a citizen of Kenya by birthwho acquires citizenship of another country to retain the citizenship of Kenya.5.2.3 Permanent ResidenceUnder the Kenya Citizenship and Immigration Act 2011, persons who were citizensby birth but have since renounced or otherwise lost their citizenship status and64DOING BUSINESS IN KENYA
are precluded by the laws of the countries of their acquired domicile from holdingdual citizenship, persons who have held work permits for at least seven years andhave been continuously resident in Kenya for the 3 years immediately preceding themaking of the application, children of citizens who are born outside Kenya and haveacquired citizenship of the domicile and the spouses of Kenyan citizens married forat least three years are eligible to be issued with a permanent residence certificate.5.3 Labour LawEmployment relations in Kenya are regulated by a number of sources includingconstitutional rights, statutory rights, as set out in statutes and regulations; rightsset by collective agreements; and individual labour contracts. Following are some ofthe Kenyan legislation enacted relating to employment and related matters:• The Employment Act, 2007 (which repealed the then Employment Act) whichcame into force on 2nd June 2008.• The Occupational Safety and Health Act, 2007 (which repealed the Factoriesand Other Places of Work Act) which came into force on 26th October 2007.• The Work Injury Benefits Act No. 13 of 2007 (which repealed the Workman’sCompensation Act) which came into force on 2nd June 2008.• The Labour Institutions Act, 2007 (which repealed the Regulation of Wages andConditions of Employment Act (Chapter 229, Laws of Kenya)) which came intoforce on 2nd June 2008.The legal requirements under these statutes are interpreted and enforced by theIndustrial Court, and in some cases by the ordinary courts. International standards,especially ILO Conventions ratified by Kenya are used by the Government and courtsas guidelines.5.3.1 Employment ContractsIn Kenya, employment contracts are governed primarily by the Employment Act aswell as the principles of common law. The employer is mandated by law to prepareand provide written contracts for all employees hired for more than 3 months at atime.Employment contracts must contain all employment particulars including the name,age, permanent address and sex of the employee, the name of the employer, thejob description of the employment, the date of commencement of the employment,the form and duration of the contract, the place of work, the hours of work, theremuneration, scale or rate of remuneration, the method of calculating thatremuneration and details of any other benefits, the intervals at which remunerationis paid.Employment terms are negotiated by the employee and employer subject to theminimum prescribed by the Employment Act.DOING BUSINESS IN KENYA65
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2.0 General2.1 IntroductionKenya li
Page 13 and 14: Kenya Tanzania Uganda Rwanda Burund
Page 15 and 16: A huge chunk of the Act regulates m
Page 17 and 18: • Stamping of the Memorandum of A
Page 19 and 20: the Registrar within a statutory pe
Page 21: 3.2.3 Thin CapitalisationThin capit
Page 24 and 25: Where a business is carried on or e
Page 26 and 27: territory or domestic market. Motor
Page 28 and 29: • Unrealised foreign exchange los
Page 30 and 31: 4.2.6 Business with Non-Resident Pe
Page 32 and 33: Installments Due Date RateNon-Agric
Page 34 and 35: The current Personal Income Tax rat
Page 36 and 37: c) Housing• The higher of market
Page 38 and 39: partnership in which the husband or
Page 40 and 41: (1) East African Community partner
Page 42 and 43: Where the taxpayer still disputes w
Page 44 and 45: The VAT rates applicable in Kenya a
Page 46 and 47: 4.8.4 De-registration and Disposal
Page 48 and 49: • Payment is received for all or
Page 50 and 51: 4.8.7 Records, Invoices, Credit and
Page 52 and 53: A credit note should be serially nu
Page 54 and 55: However, where a motor vehicle or o
Page 56 and 57: Where there is no tax payable a ‘
Page 58 and 59: granted or is partly granted, the b
Page 60 and 61: • Airtime on cellular mobile phon
Page 62 and 63: Transit VisasThese are visas requir
Page 66 and 67: 5.3.2 WagesAlthough the Employment
Page 68 and 69: NSSF provides the employee with a l
Page 70 and 71: 6.0 ACCOUNTING6.1 Statutory Framewo
Page 72 and 73: 7.0 INTELLECTUAL PROPERTYRIGHTSKeny
Page 74 and 75: Years 1 Shs 1,000Year 2 Shs 1,500Ye
Page 76 and 77: 8.0 Listing Rules8.1 The Capital Ma
Page 78 and 79: • At the date of application, the
Page 80 and 81: 8.3 Payable FeesCompanies pay an in
Page 82 and 83: 9.0 Investing in Kenya9.1 General I
Page 84 and 85: 9.3 Foreign Ownership of Shares and
Page 86 and 87: Contact Details - RSM AshvirRSM Ash
Page 88 and 89: Appendix of Acronyms used in the Bo
Page 90: Notes90DOING BUSINESS IN KENYA
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Doing Business in Kenya - RSM International

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