Kenya: Foreign companies to face 30 per cent local ownership rule

Re:Kenya: Foreign companies to face 30 per cent local owners... by morgante on Sunday July 24, 2016 @06:21PM (#12155185)

Yes, the UAE requires 51% Emirati ownership for all companies not located in free zones.

It's a terrible policy which has significantly stifled entrepreneurship. Most businesses skirt around it by either funneling their revenue through a free zone or hiring an Emirati "owner."

These sorts of policies are classic populist maneuvers which seem like a good idea, but impose a tax on business activity which outweighs any gains to be had.

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Re:Kenya: Foreign companies to face 30 per cent local owners... by danmaz74 on Sunday July 24, 2016 @06:30PM (#12155224)

But UAE has free zones - plus lots of oil money going around...

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Re:Kenya: Foreign companies to face 30 per cent local owners... by johndoe34 on Sunday July 24, 2016 @10:44PM (#12156138)

The EPZ zones (Export Processing Zones) are indeed the best location to set up factories or warehouses. You can offer jobs to staff typically from India or so, or why not, from Kenya, to work there. Things tend to be entirely tax-free, and you do not need to worry about local politics. I would not put down a factory full of expensive equipment in Kenya. In terms of governance and risk evaluation, it really does not sound like a good idea to do that. The staff would have to come over to the EPZ to work from there.

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