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The Business Laws (Amendment) Act 2020 (the “Act”) was assented to by the President on March 18,
2020. The Act has amended several laws with the aim of facilitating the ease of doing business in the
country. The World Bank, through annual surveys that investigate the laws and regulations that either
enhance or constrain business activity in various counties, ranks nearly 190 worldwide. The report
usually covers several areas which include starting a business, registering property, enforcing
contracts, among others.

The Central Bank of Kenya has issued a regulatory approval to Fingo Africa, the first ever digital-
only bank, to roll out its services in Kenya. Fingo Africa (“Fingo”) is a Neobank that has partnered

with Ecobank. Both institutions are planning a Pan-African roll out which shall commence in
Kenya. According to Fingo, it has raised seed capital of Kenya Shillings 1 billion (which under
Kenyan Law is the minimum capital required to establish a bank) and its services are to be
accessed through the ‘Fingo Africa App’, now available on Google Play Store and Apple Store.
The services include account opening, withdrawals, deposits, savings, checking of bank balances,
request for bank statements, monitoring of financial statements and general financial education.
Fingo has no monthly charges, overdraft fees, credit checks or minimum balance required. It also
has a guaranteed access period of five minutes.

A Free Trade Agreement (FTA) is an agreement between two or more countries (“partner
countries”) to facilitate trade and eliminate trade barriers. It typically removes or significantly
reduces impediments to the flow of goods and services between the partner countries. For this
purpose, modern FTAs go beyond the mere reduction of tariffs for traded goods, and address
various regulatory principles. Generally, FTAs help create an open and competitive
international marketplace.

By an amendment introduced to the Income Tax Act by the Finance Act of 2014 Capital Gains Tax (CGT)
was re-introduced in Kenya. The tax, which had been suspended in 1985, is chargeable on the whole of the
gain or profit made on the transfer of property situated in Kenya – it’s the gain made that’s taxed, not the
entire transfer value. The burden of declaring and paying the tax liability is on the beneficiary of the gain
who, in the case of a transfer of property, is the transferor.
Administration of CGT is currently governed by the Income Tax Act and the Tax Procedures Act.

Conflict is what happens when boardroom dialogue fails. The resultant effect of any conflict can
have far-reaching effects on a company. What happens where a member is disgruntled by the
decisions of some of the members of the company and yet the wrongs cannot be resolved by
internal mechanisms due to majority rule? What should a minority shareholder do in such
circumstances? The principal law governing protection of minority shareholders from controlling
shareholders is the Companies Act, No. 17 of 2015 (together with attendant regulations) and
complemented with common law principles.

The Finance Act 2022 dated 23rd June 2022 (hereinafter referred to as “the Act”) came into operation
on the 1st of July 2022. The Act amended various tax laws including the: Excise Duty Act, 2015),
Miscellaneous Fees and Levies Act, 2016, Tax Procedures Act, 2015, The Income Tax Act Cap 470, and
The Value Added Tax Act, 2013.

SEZs have numerous advantages, all aimed at creating a favorable environment for investors to
flourish. This article highlights the tax advantages that investors and establishments in SEZs
benefit from.
The SEZs Act exempts all SEZ enterprises, developers & and operators from taxes and duties
payable under the Excise Duty Act, Income Tax Act, EAC Customs Management Act, and Value
Added Tax Act on all SEZ transactions. They are exempted from:

The Finance Bill, 2021 (“the Bill”) was published on 5th May 2021. It aims to amend various laws
relating to taxes and duties including the Income Tax Act, Value Added Tax Act, Excise Duty Act,
Tax Procedures Act, Miscellaneous Fees and Levies Act, Capital Markets Act, Central
Depositories Act, Kenya Revenue Act, Insurance Act and the Retirement Benefits Act.

The Landlord and Tenant Bill 2021 dated 12th February 2021 (“the Bill”) is sponsored by Majority
Leader Amos Kimunya and is currently undergoing review in Parliament. The Bill seeks to
consolidate all the laws on residential and commercial tenancies and to ensure regulation of the
rental sector in Kenya.

Digital Service Tax (DST) is income accruing from a business carried out over the internet or an
electronic network including through a digital marketplace.
It is worth to note that this definition has been expanded to clear the uncertainty that was there
previously on whether non-resident providers of electronic services who were not undertaking
business through a ‘’digital marketplace’’ were within the scope of digital service marketplace.
It is now clear that any income accrued in or derived from Kenya by a non-resident person in
relation to services provided over the internet or an electronic network is subject to Digital service
tax in Kenya.