[kictanet] Foreign ICT firms to cede 30pc stake under new law

[Mwendwa Kivuva]

Foreign companies eyeing to do business in the country’s lucrative ICT
sector will have to surrender 30 per cent shareholding to Kenyans.

This is according to the National Information Communications and Technology
Policy Guidelines 2020, published last week, that spell out new regulatory
obligations by companies and individuals working in the ICT sector.

“The government strongly encourages Kenyans to participate in the ICT and
science and technology sector through equity participation,” states the
regulatory policy published last week by the ICT Ministry.

“It is the policy that only companies with at least 30 per cent substantive
Kenyan ownership, either corporate or individual, will be licensed to
provide ICT services.”

The State anticipates the policy will create 20 Kenyan multi-national ICT
companies, 300 mid-sized firms, 5,000 small and medium enterprises and
20,000 startups.

This is expected to increase the number of startups by easing their barrier
to entry. The policy also proposes a government venture capital fund that
will invest in start-ups for a portion of the equity on a first-loss basis
in case the startup fails.

Read on
https://www.standardmedia.co.ke/business/article/2001381825/foreign-firms-to-cede-30pc-stake-under-new-law#


______________________
Mwendwa Kivuva, Nairobi, Kenya
https://www.linkedin.com/in/mwendwa-kivuva
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20200807/ca627897/attachment.htm>