Kenya Has A New ICT Policy: Foreign Tech Companies To Give Up 30% Ownership To Kenyans
The Ministry of ICT in Kenya has come up with a new policy to immunize the company’s ICT sector and one of the key points is that the policy states that foreign tech companies should have at least 30% Kenyan ownership before they are licensed to operate in the country.
The policy tagged the “National Information, Communications and Technology (ICT) Policy” states that it wants to help develop the nations’ digital economy, and help grant universal access to ICT infrastructure and services in the country.
The policy is meant to attract active participation by Kenyans in their own ICT environment by creating an enabling environment with major stakeholders.
Companies without majority Kenyan ownership will not be considered Kenyan and will have to meet the minimum threshold.
Tech companies have been given 3 years to meet the local equity ownership and might be given a one-year extension if valid reasons are brought before the Cabinet Secretary.
There are reservations though as policy experts say Startup founders get diluted as they grow. No investor is coming into a startup where some people cannot be diluted.