Forex investment companies in kenya

Não Composto 5 por dia durante 80 dias. Múltiplos investimentos são permitidos. 5 programa de referência. Min. Investimento 1 USD. Máx. Investimento 49,99 USD. 100 Seguro de seu (s) Depósito (s) ataques de hackers e etc. Não Compounded 1 6 diariamente por 80 dias. Múltiplos investimentos são permitidos. 5 programa de referência. Min. Investimento 50 USD. Máx. Investimento 99,99 USD. 100 Seguro de seu (s) Depósito (s) ataques de hackers e etc. Não Compounded 2 7 diariamente por 80 dias. Múltiplos investimentos são permitidos. 5 programa de referência. Min. Investimento 100 USD. Máx. Investimento 1.000 USD. 100 Seguro de seu depósito (s) ataques de hackers e etc Compounded 240 após 12 dias. Múltiplos investimentos são permitidos. Nenhum programa de referência. Min. Investimento 50 USD. Máx. Investimento 99,99 USD. 100 Seguro de seu Depósito (s) ataques de hackers e etc Compounded 1 570 após 25 dias. Múltiplos investimentos são permitidos. Nenhum programa de referência. Min. Investimento 100 USD. Máx. Investimento 1.000 USD. 100 Seguro de seu depósito (s) ataques de hackers e etc Somos um grupo de comerciantes experientes e analistas de mercado. Depois de anos de negociação profissional, juntamos nossas habilidades, conhecimentos e talentos no esforço para trazer uma nova oportunidade de investimento confiável. Como resultado de um cuidadoso planejamento e trabalho conjunto surgiu Forex Investment Fund (FIF), um projeto de investimento confiável de longo prazo, que oferece grandes retornos junto com abordagem profissional e segurança. Nós não reivindicamos as taxas de juros mais altas disponíveis on-line e isso nunca foi nosso objetivo principal. O que consideramos mais importante é a estabilidade, pagamentos pontuais e serviço impecável. Mas sem dúvida Forex Investment Fund (FIF) se destaca da maioria das oportunidades de investimento on-line. Nossa experiência profissional nos permite oferecer retornos de investimentos seguros. Planejamos nossa carteira de investimentos para mitigar os riscos inerentes à negociação. Usamos várias estratégias de investimento e sempre diversificamos nossos investimentos. Diversificação na negociação é a sua parte mais importante que minimiza os riscos e gera maiores lucros. Forex Investment Fund (FIF) é uma chave para a prosperidade e estabilidade financeira. Forex Investment Fund (FIF) é um programa de empréstimo privado de alto rendimento, apoiado por Bonds, Forex, Gold, Stocks e investir em vários fundos e actividades em todo o mundo. Forex Investment Fund (FIF) é um programa de empréstimo privado de alto rendimento, apoiado por Bonds, Forex, Gold, Stocks e investir em vários fundos e actividades em todo o mundo. Nossa missão é proporcionar aos nossos investidores uma grande oportunidade para os seus fundos, investindo com a maior prudência possível em várias áreas para obter uma alta taxa de retorno. Somos um grupo bem sucedido de indivíduos que fizeram o nosso dinheiro através de investimentos prudentes no setor financeiro em uma base mundial por mais de 8 anos. Honestamente, por favor, não nos compare com algo como programas HYIP ou jogos que estão sempre indo e vindo. Além disso, temos uma fonte confiável e rentável de lucro líquido real, com base no investimento real do mercado real. Isso significa que somos capazes de pagar aos nossos investidores por tantos anos quanto escolherem permanecer conosco, independentemente de novos investidores se juntarem ou não. Nossa equipe tem sido orgulhosamente de propriedade e operado desde junho de 1998, participando de muitos empreendimentos on-line e off-line, resultando em grandes margens de lucro para as equipes de investidores e os investidores exclusivos. Nós somos um grupo de indivíduos que têm estado na arena de investimento por mais de 8 anos, a maioria dos nossos companheiros de investidores são banqueiros profissionais, alguns deles têm anos de negócios e experiência financeira relacionada. Nós somos as pessoas sérias que estão dirigindo o negócio sério. Nosso grupo é composto por americanos, asiáticos, australianos, canadenses, europeus, assim, podemos assistir a todos os mercados diferentes quase 24 horas por dia. Não importa o quão bons registros comerciais que foram feitas, estamos apenas ajudando a nós mesmos só. Temos visto muitas pessoas sofrer perde de várias oportunidades de internet que não podem cumprir as suas promessas, por isso, sentimos que há uma necessidade de pessoas como você para fazer um ganho constante de renda sem arriscar grandes quantidades de dinheiro. Bem-vindo aos investimentos on-line Você está procurando oportunidades de investimento e serviços que são projetados para atender às suas metas financeiras Online Investments Services Limited é o principal recurso on-line para investimento on-line, gestão de risco E serviços de consultoria para investidores institucionais e individuais em todo o mundo. Nós fornecemos aconselhamento abrangente e ampla gama de soluções de investimento que são projetados para atender as necessidades de instituições, clientes privados e públicos, bem como, high-net-worth indivíduos globalmente. A principal prioridade de nossa empresa é a máxima disponibilidade de nossos serviços aos investidores de todos os níveis. Devido ao profissionalismo de nossos funcionários e à introdução de técnicas de mercado de ponta, conseguimos oferecer um serviço de alta qualidade com custos mínimos. Política de desenvolvimento local ativa da Online Investments Services Ltd tem como objetivo fornecer aos clientes em qualquer parte no mapa do mundo com o serviço de alta qualidade indubitável para obter renda de investimento. Nossas estratégias e tecnologia são a espinha dorsal de nosso negócio que nos permite definir o padrão no mercado global. Se você está economizando para a educação de seu filho, investindo em seu negócio, construindo sua aposentadoria de sonho, ou procurando oportunidades de investimento alternativo, nossa empresa irá fornecer a informação, percepção e conhecimentos necessários para alcançar seus objetivos financeiros. Dezenas de milhares de investidores confiam no conhecimento, experiência e integridade dos Serviços de Investimentos Online Estamos totalmente comprometidos em fornecer toda a gama de serviços de investimento para atender às variadas necessidades e expectativas de nossos clientes através das diferentes etapas de suas vidas. 25 - 45 Fixed Daily Interest A Global Investment Management é uma empresa independente de corretagem e investimento que oferece uma variedade de produtos e serviços de investimento de renda fixa. Oferecemos serviços de consultoria de investimento para investidores institucionais e privados, incluindo análises de política de investimento, análise de custos de investimento, análise de alocação de ativos e avaliação de desempenho. Se você está economizando para a educação de seu filho, investindo em seu negócio, construindo sua aposentadoria de sonho, ou procurando oportunidades de investimento alternativo, nossa empresa irá fornecer a informação, insight e conhecimentos necessários para atingir seus objetivos financeiros. Nossas taxas de juros competitivas são garantidas por um período inicial determinado pelo contrato. Aproveite ao máximo suas reservas de dinheiro com nossas soluções seguras de investimento on-line. Oferecemos juros fixos com a possibilidade adicional de manter suas economias em Dólar, Euro ou Ouro. Ganhe 300 a 500 Lucro mais Seu principal grupo de gestão de dinheiro fornece serviços de gestão de investimentos para instituições e indivíduos. Usamos nossa própria pesquisa para selecionar ações que têm preços significativamente abaixo de nossa avaliação de seu valor intrínseco. Para fazer seu dinheiro em linha ganhar tanto quanto possível rentável. Nossa posição é que uma carteira focada de tais ações proporcionará retornos superiores a longo prazo e, importantemente, menos risco de perda do que a carteira de ações média. Para os investidores que procuram retornos positivos e rentáveis ​​dinheiro ganhando online, independentemente das tendências do mercado de ações, Money Management Group tem fundos de retorno absoluto que investem em nossas carteiras de capital, complementado com cobertura para reduzir o risco de perda associada com quedas nos mercados bolsistas. Nossa equipe numerosos consiste de analistas profissionais, comerciantes de moeda, corretores de bolsa de valores e pessoal de apoio. Profissionais reais irão guiá-lo para a prosperidade no dinheiro ganhando esfera online. Estamos pagando aos nossos membros 30 a 50 lucro diário. Receba até 400 Lucro Investimento Global é um programa de investimento on-line privado. Nós oferecemos-lhe uma renda passiva verdadeira e estável de sua participação em nosso programa. Com os seus parceiros de cooperação, o Global Investment forma um grupo de corretores e analistas internacionais que podem recorrer a muitos anos de experiência na elaboração e implementação de estratégias comerciais. É nosso objetivo apoiá-lo na implementação bem-sucedida de sua decisão de investimento e acompanhá-lo em todas as fases do processo de investimento com um alto grau de atenção de modo a gerenciar continuamente seus ativos da melhor maneira possível. Nossa experiência profissional nos permite oferecer retornos de investimentos seguros. 400 - 850 Retorno em 24 Horas A Bullion Investments é uma empresa de investimento profissional, criando um grande portal de investimento para investidores em todo o mundo. Nós temos alguns mercados de investimento alternativos que nos dão oportunidades para manter nossas promessas, com relação aos pagamentos e são um tipo de seguro contra quaisquer possíveis flutuações nas fontes básicas de obtenção do lucro. A demanda por investimentos em ouro aumentou substancialmente à medida que os investidores procuram cada vez mais a segurança dos investimentos em papel através de metais preciosos. A Bullion Investments tem um portal de investimento bem construído que oferece um ambiente de investimento seguro, seguro e 100 garantidos para todas as pessoas em todo o mundo. Com um sistema muito seguro, que prometeu lhe dar o melhor tempo de investimento sem medo. Portanto, somos diferentes da empresa de investimento outros, porque estamos muito sérios sobre os nossos serviços e satisfação do cliente. Pagamos 30 - 80 Daily Profit Forex Markets é uma das empresas de maior crescimento e perspectiva, trabalhando em um mercado de câmbio. Principais negócios da empresa está negociando no mercado FOREX. Análise sistemática de mercado, observação de câmbios estrangeiros, negociação de margem, uso efetivo de análise fundamental e técnica, tudo é realizado para reduzir riscos e obter lucro. Corporation exerce a sua actividade 24 horas por dia devido a um grupo de comerciantes profissionais. Nós investimos em fundos de longo prazo e de curto prazo registrados no NYSE amp AMEX, bem como fundos de investimento privado e mais importante, a troca de Forex. Nossos investidores recebem de 30 a 80% ao dia, ao mesmo tempo em que nossos lucros aumentam proporcionalmente a uma soma total de investimentos. Tornando-se nosso investidor, você se torna não só uma parte do capital de giro, mas também uma parte do nosso comando Receber até 1100 Return Money Investment Service é uma das principais organizações de serviços financeiros - fornecendo serviços financeiros e de investimento e produtos. Oferecemos uma ampla gama de serviços para investidores individuais e institucionais, incluindo assessoria de investimento, estratégia e planejamento, gerenciamento de portfólio e investimento em ações. O investimento do dinheiro fornece programas diferentes do investimento do competidor com retornos garantidos e oferece uma opção do investimento para todos, se é o homem de negócios ou a pessoa aposentada, a dona de casa ou o estudante universitário. Nosso compromisso com as necessidades de investimento de nossos clientes, nossos profissionais experientes e dedicados nos ajudam a encontrar soluções personalizadas para cada cliente. É por isso que consideramos nossos produtos de investimento como um dos melhores do mercado financeiro. Pagamos 25,5 a 36,5 lucro diário, você também pode aproveitar o nosso plano de oferta especial e ganhar 1100 retorno. 1000 Return In 48 Hours O Grupo de Investimento de Doha está dedicado a tornar-se uma companhia financeira diversificada e competitiva de classe mundial, visando maximizar a riqueza, bem como criar uma pegada global dentro de cada setor de foco. Pretendemos fazer a ponte entre o leste e o oeste acelerando as mudanças nos fluxos de capital e atuando como um catalisador para o desenvolvimento dos mercados globais de capital. Os investidores modernos procuram proteger e aumentar seu capital. Em tempos voláteis e incertos, é difícil encontrar um lugar seguro para investir. Há um número incontável de fundos de investimento e oportunidades de investimento para escolher, mas de nenhuma forma todas as empresas de investimento são seguras e responsáveis ​​o suficiente para confiar seu dinheiro para eles . No Grupo de Investimento de Doha, temos uma equipe de gerentes de investimento profissional usando estratégias de investimento de mercado financeiro testadas no tempo. A nossa filosofia de investimento baseia-se na preservação do capital dos investidores39 e num elevado nível de rendimento corrente. Investir com o Grupo de Investimento de Doha é uma grande oportunidade para proteger e aumentar seu capital. Ganhe 400 - 600 Retorno sobre seu investimento Gold Investments é um dos mais antigos e respeitados nomes na indústria do ouro. A demanda por investimentos em ouro aumentou substancialmente à medida que os investidores procuram cada vez mais a segurança dos investimentos em papel através de metais preciosos. Com quase duas décadas de operação, Gold Investments é um dos nomes mais antigos e respeitados na indústria do ouro. Como resultado de um cuidadoso planejamento e trabalho conjunto surgiu Gold Investments, Investment, um projeto confiável de investimento de longo prazo, que oferece grandes retornos, juntamente com a abordagem profissional e de segurança. Descubra por si mesmo por que milhares antes de considerar Gold Investments ser um líder da indústria para pesquisa de mercado e comentários, preços e disponibilidade de produtos e orientação de portfólio confiável e competente. Temos 6 planos de investimento com diferentes lucros diários que dependem do montante do depósito. Pagamos aos nossos membros 400 a 600 lucros. 225 - 300 Lucro Em 4 Dias O Investimento Financeiro é uma empresa regulada de negociação de valores mobiliários e commodities, especializada em corretagem on-line de Divisas (quotForexquot). Além de Forex, Financial Investment é um fabricante de mercado primário em Contratos por Diferença (quotCFDsquot) em ações, índices e futuros e oferece um dos serviços de negociação on-line de CFDs de crescimento mais rápido. O investimento financeiro tem mais de 10 mil clientes em todo o mundo, incluindo comerciantes individuais, instituições e gerentes de dinheiro. O investimento financeiro fornece um sistema negociando em linha avançado, seguro, e detalhado. Os fundos de clientes são segurados e mantidos em uma conta de cliente separada. Além disso, a Financial Investment Inc mantém o Capital Líquido em excesso dos requisitos mínimos regulamentares. Utilizamos nossos conhecimentos e habilidades junto com os métodos financeiros mais eficazes para alcançar os melhores resultados fiscais nos projetos de investimento mais atraentes. Investimento financeiro aprecia cada investidor e sempre encontra as melhores variantes para suas finanças. Trabalhando conosco é conveniente e transparente, você pode sempre assistir os resultados de seus investimentos em nosso site. Nós fornecemos a você a confiança de que seus fundos nunca param de trabalhar para você. Faça seu investimento agora e junte-se a nosso sucesso 8,5 a 19,0 Daily Lucro Stock Market Services Ltd é uma corretora independente, serviços de consultoria e empresa de investimento que oferece uma variedade de produtos e serviços para investidores em todo o mundo. Oferecemos uma gama completa de investimentos, gestão de activos, planeamento financeiro e outros produtos e serviços financeiros. Se você é novo para negociação on-line ou um comerciante ativo experiente, Stock Market Services Ltd oferece planos de investimento de ações personalizadas. Os planos de investimento desenvolvidos por nós permitirão que nossos clientes coloquem seus investimentos no mercado de ações, reduzindo tempo e riscos se comparados com investimentos independentes. Nossa equipe tem a experiência e qualificação habilidades de gestão para ajudá-lo na construção de plataforma de estabilidade financeira para os próximos anos. Você pode se tornar um investidor e começar a receber lucros nos mercados que sempre foram fechados para investidores privados ou foram conectados com outras dificuldades, como a falta de conhecimento da atividade de investimento necessário para investir em seu próprio país. O dinheiro que você nos confia torna-se parte de nosso capital de investimento o mesmo que muitos outros depósitos de investidores e será gerenciado por profissionais experientes. Você pode aproveitar nossos Programas de Oferta Especial e ganhar até 390 lucros. 1200 Em 12 - 48 horas Secure Investment é um programa de investimento de alto rendimento, apoiado por negociação no mercado Forex e investir em vários fundos e atividades. Os lucros destes investimentos são utilizados para melhorar o nosso programa e aumentar a sua estabilidade a longo prazo. Este é um dos programas de investimento mais seguros e convenientes na Internet. Você pode escolher suas horas de investimento de casa, escritório ou em qualquer lugar do mundo. Tudo o que você precisa é uma conta Perfect Money ou Bitcoin e um computador pessoal com acesso à Internet. Oferecemos-lhe para se tornar um membro do Secure Investment e receber 500-1200 de seu depósito em 12 a 48 horas diretamente em sua conta em moeda eletrônica. 350 Return After 48 Hours Capital Management Group é um grupo internacional de gestão de investimentos, gerenciando ativos para instituições e particulares de escritórios em todo o mundo. Nossa missão é oferecer um desempenho superior do fundo em diversas classes de ativos nas quais acreditamos ter uma vantagem competitiva sustentável. Oferecemos-lhe um método simples, conveniente, acessível e flexível de investir em mercados emergentes através da nossa plataforma de investimento online única. Com nossas operações e estratégias de negócios globalmente integradas, nosso processo de investimento disciplinado e estabelecido e o conhecimento e experiência de nossos gerentes de investimentos, podemos oferecer soluções de investimento inovadoras e oferecer o máximo retorno. 300 - 700 Return After 48 Horas Forex Investments foi criado para permitir que as pessoas a aumentar a sua riqueza de forma segura e fácil, sem trabalho e sem risco. Forex Investments está envolvida na negociação on-line de câmbio (FX), ações, ações na margem (CFDs), futuros. Nossa empresa é uma empresa de consultoria de investimentos que negocia exclusivamente o mercado de Forex com o objetivo de crescimento agressivo. Depois de fazer um depósito, o montante é igualmente dividido e adicionado ao nosso profissional gerenciado estoque amp contas Forex. Isso permite que as pessoas a experimentar, participar e receber muito bons retornos em uma base diária, em comparação com os retornos oferecidos por outros métodos tradicionais. 50 a 100 Daily Interest Capital Investment é um gestor de investimento global dedicado ao crescimento e à preservação de activos de clientes e à criação de confiança, em parceria com profissionais e instituições financeiras de todo o mundo. Temos trabalhado para ajudar os investidores a atingir seus objetivos financeiros. Como investidor no Capital Investment, você terá acesso a uma ampla gama de opções de investimento, incluindo ações e títulos, para ajudar a alcançar seus objetivos de investimento. Fizemos um objetivo muito ambicioso - para se tornar o melhor projeto de investimento na web que fará com que os fundos de clientes39 funcionem. Alcançamos o objetivo, mas ainda estamos avançando. Nosso principal objetivo é fornecer um serviço de primeira classe capaz de atender às demandas dos clientes mais exigentes. Na Capital Investment, desenvolvemos produtos de investimento que são relevantes para o mercado e que acreditamos serem projetados para produzir um desempenho de investimento consistente e competitivo. Oferecemos uma ampla gama de estratégias de investimento, concentrando-nos na excelência operacional e na capacitação tecnológica. Gerenciamos nossos negócios com ética e agimos com responsabilidade em relação aos nossos clientes e à nossa equipe. Estamos empenhados em apoiar nossos clientes com equipes de serviços dedicados e profissionais de vendas bem informados. Nossa experiência profissional nos permite oferecer retornos de investimentos seguros. 9,5 a 15,5 Juros Diários A gestão de fundos online é um sistema de investimento concebido especificamente para investidores online. Nosso objetivo é oferecer retornos de investimento poderosos e ajustados ao risco para nossos investidores, alcançando um desempenho consistente através da qualidade de nossas pessoas e experiência. A Online Fund Management seleciona oportunidades de investimento com parâmetros estritamente definidos, onde a Gestão de Fundos Online pode trazer mudanças positivas através do envolvimento estratégico, financeiro, tecnológico e operacional, revolucionando assim os parâmetros fundamentais da empresa. Nosso envolvimento com as empresas está profundamente conectado para agregar valor de várias maneiras, aumentando exponencialmente o retorno sobre o capital implantado, Online Fund Management aproveita sua abordagem para investir para maximizar o retorno sobre o capital, oferecendo aos investidores um canal exclusivo em risco controlado alto retorno investimentos . Oferecemos três pacotes de investimento para você escolher - Standard e Premium e VIP. Receber lucro de até 500 Abu Dhabi Co. é um dos principais provedores de serviços de investimento no mundo dos investimentos na Internet no Oriente Médio que fornece soluções de investimento de renda fixa para investidores individuais e institucionais nos EUA, Emirados Árabes Unidos e em todo o mundo. Abu Dhabi Co lhe dá a oportunidade de alcançar sua liberdade financeira, mesmo que você não tem a experiência para fazê-lo. Oferecemos-lhe uma taxa fixa e alta renda com os termos de plano mais conveniente para você. Ao proteger seu dinheiro de perder seu valor, nós transformamo-lo em uma máquina financeira poderosa que traga os melhores retornos possíveis nos recursos. Como resultado, dependendo do plano escolhido você recebe lucros elevados que você escolhe eletronicamente. Ganhe de 450 a 700 retorno sobre o seu investimento Dentro de 4 a 48 horas Bancos de investimento mútuo é uma empresa de investimento privado que foi criada em 2008 por um grupo de experientes corretores de câmbio e analistas. Nossa estratégia de investimento é baseada em princípios de gestão de risco, portanto, não nos limitamos em áreas de investimento. Você pode ter certeza de que nós fornecemos você vai se esforçar com o serviço mais rápido mais eficiente, juntamente com os produtos de alta qualidade disponíveis. Nossos investidores recebem de 450 a 700 retorno. Investimentos em Forex e PAMM investimentos com LiteForex ranking funcional onde as contas são ordenadas por sua vida útil, rentabilidade, capital gerido, e assim por diante. Regularmente atualizado revisão on-line das contas managersrsquo fornecendo dados estatísticos corretos necessários para analisar e compreender os princípios do trabalho managerrsquos. Depósitos e retiradas podem ser feitas a qualquer momento. Não há taxas para retirada antecipada de fundos. Rollover é usado apenas para liquidar contas entre as partes: o gerente, investidores e parceiros. Todos os processos são automatizados e não exigem monitoramento: o saldo da conta managerrsquos não muda devido a operações não-comerciais em conformidade, o gerente não tem que ajustar os volumes de posições tudo é ajustado automaticamente. Segurança do uso e transparência do sistema Todos os fundos dos investidores são mantidos apenas em suas contas e somente os investidores podem acessar suas contas. Os fundos dos investidores não são depositados na conta do administrador. O Gestor exerce a actividade de negociação na conta de negociação da Managerrsquos. As transações executadas na conta Managerrsquos são reproduzidas em todas as contas anexadas ao projeto PAMM, incluindo a conta de investimento do Managerrsquos. O investidor pode predeterminar o nível máximo de levantamento e o montante do lucro. Assim que esses parâmetros forem atingidos, o investimento será retirado. Grande potencial de lucro A possibilidade de investir em várias contas PAMM permite diferenciar os riscos, aproveitar ao máximo os lucros dos investimentos e diminuir eventuais perdas financeiras. O sistema permite que os comerciantes para fazer investimentos rápidos e retiradas a revisão conveniente de contas ajudará a escolher os projetos mais adequados. Além disso, o investidor não depende da decisão do gerente de aceitar ou não investimentos no momento. Oportunidade e restrições ao investimento estrangeiro O Quênia tem uma longa história de liderança econômica na África Oriental como a economia maior e mais avançada na região. No entanto, a violência pós-eleitoral carregada de etnia, entre janeiro e fevereiro de 2008, que deixou aproximadamente 1.200 mortos e 600.000 deslocados, fez com que muitos reavaliasse o clima de investimento de Kenyarsquos. Desde então, a economia recuperou, mas o crescimento do PIB não voltou aos níveis de 2007. As preocupações sérias com a corrupção ea governação retardaram o crescimento econômico de Kenyarsquos, quando alguns países vizinhos mantiveram taxas de crescimento mais elevadas e mais estabilidade política. A taxa de crescimento anual média do Produto Interno Bruto (PIB) na década de 2000 foi de 3,6 por cento, um aumento em relação à média dos anos 1990 de 2,2 por cento. Em 2010, a taxa de crescimento melhorou para 5,8 por cento antes de cair para 4,4 por cento em 2011. O crescimento econômico em 2012 é projetado pelo Banco Mundial para ter sido de 4,3 por cento, inferior às projeções anteriores de 5 a 6 por cento de crescimento. O Tesouro do Quênia projetou uma projeção de crescimento de 6,4% para o terceiro trimestre, com base nas expectativas de chuvas favoráveis ​​e crescimento de 6,8% no quarto trimestre. Apesar das projeções de crescimento otimista do Tesouro e mesmo com condições climáticas favoráveis ​​no terceiro trimestre de 2012, o PIB nominal cresceu 4,7 por cento (2,2 por cento, corrigido de sazonalidade). O crescimento global do PIB tem sido afetado negativamente por: altas taxas de juros, aumento da insegurança devido aos ataques terroristas al-Shabaab e o surgimento de gangues de jovens, incerteza eleitoral e queda da demanda global devido à crise da dívida na zona do euro. O turismo e a horticultura foram os mais afectados pela desaceleração na Europa. O aumento das despesas de consumo no período que antecedeu as eleições de Março de 2013, bem como o aumento dos sectores da construção e do comércio, resultante da melhoria do acesso ao crédito, provocada pela descida das taxas de juro, acelerariam o crescimento global. O Banco Mundial projeta uma taxa de crescimento de 5,0 por cento em 2013 e 5,1 por cento em 2014. O Tesouro do Quênia projetos a taxa de crescimento irá aumentar para 6,5 ​​por cento em três anos com base nas expectativas de condições climáticas estáveis, conclusão de projetos de infra-estrutura e crescimento de Regionais para as exportações. Essas projeções exigem que o Quênia cresça a uma taxa raramente vista nos últimos 30 anos e ainda abaixo da taxa de crescimento alvo da visão 2030 do governo de 10%. A inflação de Kenyarsquos caiu de 16.2 por cento em 2008 a 9.2 por cento em 2009, em parte devido a uma nova metodologia para calcular a taxa, e caiu mais para 4.1 por cento em 2010. A inflação elevada ressurgiu em 2011, entretanto, batendo um ano-em-ano elevado De 19,72 por cento em novembro de 2011. A inflação média anual para 2012 foi de 9,6 por cento, em comparação com 13,95 por cento em 2011. A inflação declinou consistentemente de um pico de 18,3 por cento em janeiro para 3,2 por cento em dezembro, registrando 13 quedas mensais consecutivas na inflação. Em outubro, a inflação ano-a-ano de Kenyarsquos caiu abaixo da meta de 5% da Central Bankrsquos. No entanto, o declínio na inflação ano-a-ano é impulsionado em parte pela inflação rápida no final de 2011 e mascarar os aumentos de preços mensais persistentes. A taxa de câmbio média USD / Ksh para 2011 foi 88,87, e foi de 84,52 para 2012. No final de 2012, o xelim estava negociando em aproximadamente 86 para o dólar. Kenyarsquos desempenho econômico e nível de competitividade global permanece baixa em relação aos benchmarks globais. De acordo com o World Economic Forumrsquos Global Competitiveness Report 2012-2013. O Quênia ocupa o 106º lugar entre os 144 países avaliados, mostrando um desempenho relativamente estável quando comparado ao ranking do ano passado de 106 dos 139 países classificados. Os pontos fortes do país continuam a ser encontrados nas áreas mais complexas medidas pelo Índice de Competitividade Global (GCI). A capacidade inovadora da Kenyarsquos está em 50º lugar, com altos gastos da empresa com a RampD e boas instituições de pesquisa científica que colaboram bem com o setor empresarial em atividades de pesquisa. Apoiar este potencial inovador é um sistema educacional que se desenvolve, embora educando uma proporção relativamente pequena da população em comparação com a maioria dos outros países é reconhecido pela qualidade (37), bem como para a formação no local de trabalho (62). A economia também é apoiada por mercados financeiros que são bem desenvolvidos pelos padrões internacionais (24º) e um mercado de trabalho relativamente eficiente (39º). De acordo com as categorias GCI, Kenyarsquos competitividade global é travado por uma série de fatores sociais. A saúde é uma área de grande preocupação (115ª), com uma alta prevalência de doenças transmissíveis contribuindo para a baixa expectativa de vida de 57 anos e reduzindo a produtividade da força de trabalho. O Quénia ocupa a 125ª posição em termos de segurança global. Em 2011, o Quénia ocupa o 143º lugar entre 187 países de acordo com o Índice de Desenvolvimento Humano da ONU (IDH). Desde a independência em 1963, o Quênia tem perseguido em várias épocas a substituição de importações e as estratégias de industrialização orientadas para a exportação. Está actualmente a implementar uma estratégia de industrialização descrita no Documento Parlamentar n. º 2, aprovado pelo Parlamento em 1996, que visa transformar o Quénia num estado totalmente industrial até 2020. A estratégia destaca o apoio às indústrias de exportação, impulsionado pelo desejo de aumentar o seu emprego potencial. A Visão 2030, revelada em 2007 como o plano de longo prazo do governo queniano para atingir o status de renda média como uma nação em 2030, reforça o Documento da Sessão, também reconhecendo a promoção industrial como uma via de crescimento e desenvolvimento. Em 2012, o Ministério da Industrialização preparou a Política Nacional de Industrialização (NIP) em linha com a Visão 2030 para orientar o desenvolvimento da indústria de transformação. O NIP foi aprovado pelo gabinete. O Ministério da Industrialização está desenvolvendo um marco legal para implementá-lo. O Quénia teve dificuldades em aproveitar as oportunidades geradas pela liberalização do comércio nos mercados desenvolvidos para exportar produtos manufaturados. A maior parte das suas exportações para a União Europeia são agrícolas com valor mínimo de valor acrescentado: chá, café, flores cortadas, legumes, frutas e nozes. A adição de valor a estes produtos primários leva à escalada das tarifas no mercado da União Europeia. Além disso, os produtos transformados no Quênia atraem o imposto sobre o valor acrescentado (IVA) que deve ser pago em primeiro lugar e reivindicado após a exportação, através de um processo de reembolso em que pode levar até quatro anos para receber o reembolso do IVA. Em contraste, os bens manufaturados (principalmente vestuário) compreendem a maioria das exportações para os Estados Unidos sob a Lei de Crescimento e Oportunidade Africana (AGOA). A indústria têxtil e de vestuário depende em grande medida de tecidos importados e de matérias-primas como o algodão, a viscose, o poliéster, o denim, o nylon e os acrílicos, uma vez que não existe uma indústria nacional competitiva de algodão. A esmagadora maioria dos produtos das Zonas de Processamento de Exportação (EPZ) é exportada para os Estados Unidos sob AGOA, com as exportações com base no AGOA para os Estados Unidos chegando a US292 milhões em 2011. Até o final de 2011, o Quênia tem 44 EPZs designadas, Operado, empregou 40.000 trabalhadores, e produziu aproximadamente 11 por cento das exportações. O Quénia também se aventurou em serviços, pioneiro em transferências de dinheiro móvel através da M-Pesa e de outros produtos inovadores de TIC. A posição de liderança regional do país, no entanto, é ameaçada por custos de energia persistentemente altos e taxas de juros, que elevam o custo global de fazer negócios no Quênia. O setor manufatureiro encolheu nos últimos anos como uma porcentagem do GDP, expondo uma abertura na habilidade do countryrsquo conseguir uma economia fully industrialized em 2020. Para conseguir este e outros objetivos do desenvolvimento incluídos no mapa de visão 2030, os fabricantes de Kenyarsquos acreditam que a economia deve Crescer por dois dígitos nos próximos 18 anos. O país também precisa enfrentar as ineficiências na logística de transporte, especialmente no Porto de Mombasa. A Associação dos Fabricantes do Quénia (KAM) apelou para a necessidade de proteger os fabricantes locais, proibindo a venda de roupas usadas (mitumba). Os fabricantes têxteis locais argumentam que a venda contínua de mitumba no mercado local poderia potencialmente prejudicar a sua indústria.1 Com base na sua elevada capacidade de inovação no GCI, o Quénia está apto a tornar-se centro da tecnologia de informação e comunicação (TIC) East Africarsquos devido a O crescimento contínuo do uso da Internet e da tecnologia móvel. O World Bankrsquos 2011 Kenya Economic Update afirma que na última década, as TIC superaram todos os outros setores no Quênia, crescendo a uma média anual de 20%. O relatório conclui que os benefícios das TIC estão começando a ser sentidos em outros setores e contribuíram para as condições para que o país atinja um ponto de inflexão econômica. O Quênia possui quatro cabos de fibra submarina com aproximadamente 8,56 terabytes de largura de banda. Os planos para aterrar um quinto cabo submarino da fibra óptica em Kenya estão a caminho, como parte de um esforço para aumentar o countryrsquos capacidade atual da largura de faixa a 15 terabytes. O Quênia tem mais de 17 milhões de usuários de internet (36% da população), dos quais apenas 6 milhões de pessoas acessam a Internet por assinatura, enquanto o restante usa dispositivos móveis para acessar a Internet. As TIC, especialmente a tecnologia móvel, são uma área importante de crescimento e inovação na economia queniana. A partir de dezembro de 2012, existem quatro provedores de telecomunicações móveis no Quênia: Safaricom parcialmente controlada pelo governo, a francesa Orange (a porção móvel da Telkom Kenya), a indiana Bharti Airtel (anteriormente Zain) e a indiana Yu (Anteriormente Essar Telecom). Empresas de telecomunicações estrangeiras podem estabelecer-se no Quênia, mas devem ter pelo menos 20 por cento de propriedade local. Em junho de 2010, o regulador de telecomunicações da Kenyarsquos reduziu a taxa de licença para serviços de Internet móvel de terceira geração (3G) em 60% para US10 milhões, para aumentar a penetração no mercado e anunciou que não cobrava por uma atualização para 4G. As aplicações mais amplas das TIC estão começando a remodelar a estrutura da economia, especialmente no setor financeiro. O setor de TIC está olhando um boom nos negócios, uma vez que o governo envia serviços para o município após as eleições de março de 2013, especialmente se o governo disponibilizar mais serviços públicos on-line. Kenyarsquos novos 47 governos do condado vai exigir melhores e mais rápidos serviços de dados para se conectar uns com os outros e com o governo nacional. Além disso, os cidadãos provavelmente exigirão mais serviços a serem fornecidos on-line, o que aumentará a demanda do setor público por hardware e software de TIC. Especialistas citaram falta de energia, dispositivos caros e taxas de uso de dados como algumas das principais questões que impedem o uso da Internet. Com mais de 20.000 quilômetros de fibra estabelecidos em todo o país, a conectividade deste tráfego para os clientes de varejo continua a ser um desafio. O turismo ultrapassou os níveis pré-eleitorais com 1,26 milhões de chegadas registradas em 2011, mas o crescimento em 2012 deverá ser plano. As chegadas de turistas consolidados através dos aeroportos de janeiro a setembro foram de 906.960, representando um decréscimo de 2,7%, com 932.193 chegadas registradas em 2011 no mesmo período. Entre os principais mercados-fonte, apenas a Índia, Estados Unidos e China registraram crescimento positivo em 2012, de acordo com a estatística disponível para os três primeiros trimestres de 2012. As chegadas de turistas diminuíram ligeiramente 0,5% no primeiro trimestre de 2012, Seqüestro de turistas estrangeiros na área costeira do norte de Lamu no final de 2011. Vários governos estrangeiros emitiram avisos de viagem, levando a menor resort e reservas de hotéis por turistas estrangeiros. Mombasa, localizada na zona costeira do sul, também registou um declínio no número de turistas nos primeiros oito meses de 2012. Os factores contribuintes incluíram incidentes de terrorismo e actividades do secessionista Mombasa Republican Council (MRC) chegadas mais baixas da Europa devido à Econômico da crise da zona do euro e retirada de voos charter para Mombasa, bem como outras companhias aéreas internacionais que operam vôos para o Quênia.2 O governo queniano foca sua promoção de investimento em oportunidades que ganham divisas, fornecem emprego, promovem ligações para trás e para frente, E tecnologia de transferência. Os únicos setores significativos nos quais o investimento (estrangeiro e doméstico) são limitados são aqueles em que as corporações estaduais ainda gozam de um monopólio estatutário. Estes monopólios estão quase totalmente restritos à infra-estrutura (por exemplo, energia, telecomunicações e portos), embora tenha havido uma liberalização parcial destes sectores. Por exemplo, nos últimos anos, cinco produtores independentes de energia (IPPs) começaram a operar no Quênia. No final de 2010, a agência de classificação Standard amp Poorrsquos (SampP) elevou a classificação da dívida soberana de Kenyarsquos para B / B (longo prazo / curto prazo) com perspectiva estável. A classificação baseia-se na expectativa da SampPrsquos de manter a estabilidade política, um crescimento econômico razoavelmente resiliente, melhorar o desempenho inflacionário e manter déficits moderadamente altos, mas com mais gastos em investimentos de infra-estrutura que melhorem o crescimento. A SampP poderia reduzir a classificação se as tensões políticas fossem As pressões monetárias significativas voltarão a emergir ou os desempenhos fiscais ou monetários se deteriorariam significativamente. Em novembro de 2012, a Moodyrsquos iniciou a cobertura do Quênia, da Nigéria e da Zâmbia. A agência de classificação atribuiu ao Quênia um rating de longo prazo em moeda estrangeira e local de lsquoB1rsquo com perspectiva estável. It cited economic resilience in the face of various shocks in recent years and a commitment to governance reforms as underpinning the rating. Moodyrsquos also said that even though the debt burden was high, the government had followed prudent fiscal policies in recent years. The report also highlighted risks from the 2013 election, increased activity of militants, a widening current account deficit, and volatile short-term flows. For future Moodyrsquos upgrades, the country needs to diversify the economy and make lsquosignificant improvementsrsquo in strengthening financial institutions. The country risks a downgrade if there is prolonged political instability following the 2013 election or deterioration in overall security. Moodyrsquos rating is similar to the lsquoBrsquo rating of SampP and Fitch, so this rating affirms the views expressed by other agencies. The respective roles of the public and private sectors have evolved since independence, with a shift in emphasis from public investment to private sector-led investment. The Kenyan government has introduced market-based reforms and provided more incentives for both local and foreign private investment. Foreign investors seeking to establish a presence in Kenya generally receive the same treatment as local investors, and multinational companies make up a large percentage of Kenya39s industrial sector. Furthermore, there is no discrimination against foreign investors in access to government-financed research, and the government39s export promotion programs do not distinguish between local and foreign-owned goods. The ability of foreigners to lease land classified as agricultural is restricted by the Land Control Act. Consequently, the Land Control Act serves as a barrier to any agro-processing investment that may require land. Exemption from this act can be acquired via a presidential waiver, but the opaque process has led to complaints about excessive bureaucracy and patronage. The Companies Ordinance, the Partnership Act, the Foreign Investment Protection Act, and the Investment Promotion Act of 2004 provide the legal framework for foreign direct investment (FDI). To attract investment, the Kenyan government enacted several reforms, including: abolishing export and import licensing, except for a few items listed in the Imports, Exports and Essential Supplies Act rationalizing and reducing import tariffs revoking all export duties and current account restrictions introducing a free-floating exchange rate allowing residents and non-residents to open foreign currency accounts with domestic banks and removing restrictions on borrowing by foreign as well as domestic companies. In 2005, the Kenyan government reviewed its investment policy and launched a private sector development strategy. One component of this effort was a comprehensive policy review by UNCTAD that was the basis for the 2005 UNCTAD Investment Guide to Kenya . published in conjunction with the International Chamber of Commerce (ICC). Kenya39s investment code, articulated in the Investment Promotion Act of 2004, which came into force in 2005, streamlined the administrative and legal procedures to create a more attractive investment climate. The Actrsquos objective is to attract and facilitate investment by assisting investors in obtaining the licenses necessary to invest and by providing other assistance and incentives. The Act replaced the government39s Investment Promotion Center with the Kenya Investment Authority (KenInvest) however, the law also created some new barriers. It set the minimum foreign investment threshold at US500,000 and conditioned some benefits on obtaining an investment certificate from KenInvest. The government later revised the minimum foreign investment threshold to US100,000 as an amendment to the act. The minimum investment requirement is likely to deter foreign investment, especially in the services sector, which is normally not as capital-intensive as the agriculture and manufacturing sectors. Another amendment made the foreign investment certificate requirement optional. Further regulatory reforms include the Licensing Act of 2007, which eliminated or simplified 694 licenses, and a 2008 reduction in the number of licenses required to set up a business from 300 to 16. The Business Regulation Act of 2007 established a Business Regulatory Reform Unit within the Ministry of Finance to continue the deregulation process. In 2009, Kenya launched a national e-Registry to ease business license processing and help improve transparency. A law passed in June 2007 reduced the maximum share of foreign ownership for companies listed on the Nairobi Stock Exchange (NSE) from 75 percent to 60 percent, creating a disincentive for foreign-owned firms interested in an NSE listing. Although the regulation is not applicable retroactively, it does compel companies with a foreign presence of more than 60 percent to downgrade foreign shareholding before they can apply to the NSE, effectively barring these firms from selling excess shares to non-Kenyans. Work permits are required for all foreign nationals wishing to work in the country. The Kenyan government issues permits for key senior managers and personnel with special skills not available locally. Firms seeking to hire expatriates must demonstrate that the requisite skills are not available locally through an exhaustive search, although the Ministry of Labor plans to replace this requirement with an official inventory of skills that are not available in Kenya, as discussed below. Firms must also sign an agreement with the government describing training arrangements for phasing out expatriates. A number of infrastructural, regulatory, and security-related constraints prevent the Kenyan economy from realizing its potential. The 2012 UNCTAD Investment Guide to Kenya provides comprehensive analyses of investment trends, opportunities, and the regulatory framework in the country According to this guide, Kenya faces several key structural challenges, most notably the absence of a reliable and affordable power supply. Many companies invest in costly backup generators to ensure a steady supply of electricity. Tax administration is another significant concern. Investors often face delays in obtaining VAT and other withholding refunds, and the customs clearance process can be drawn out as goods are subject to a multiplicity of inspections. Insecurity driven by domestic and foreign factors is another major concern, though the Kenyan government has taken important steps recently to improve its ability to monitor and respond to security incidents. An April 2008 survey conducted by the Kenya Association of Manufacturers (KAM), identified constraints similar to those in the UNCTAD report and concluded that Kenya39s business climate generally is hostile. According to KAM, energy costs in Kenya constitute as much as 40 percent of total manufacturing costs. Manufacturers in Kenya pay an average of US0.134/kW of electricity, but their counterparts in Egypt pay US0.05/kW. KAM reported that because of the costly investment climate, a number of companies have opted to shift from manufacturing to trading, while others have abandoned the Kenyan market altogether. After examining firmsrsquo decisions to close or relocate over the past decade, KAM deemed that legitimate commerce in Kenya is inhibited by: (a) unfair foreign competition, which dumps counterfeit and pirated products (cosmetics, toiletries, batteries, tires, car parts, medicines, books, electronic media, and software) and secondhand clothes and shoes into the market passes off new footwear and other apparel items as secondhand to avoid tariffs and under-invoices imports (b) the high cost of manufacturing due to exorbitant electricity tariffs, poor infrastructure (notably roads and rails), and hefty transport costs (c) periodic unavailability of raw materials such as crude oil (d) labor laws that compel private companies, rather than government, to provide their employees with a social safety net, including paternity and maternity leave and health care, all of which is taxable (e) low productivity, lack of worker discipline, and strong labor unions focused on obtaining higher wages and benefits (f) onerous licensing requirements and harassment over petty demands (which could be interpreted as demands for bribes) and (g) the failure of the Kenya Revenue Authority (KRA) to process corporate tax and value added tax (VAT) refunds expeditiously. KAM noted that Kenyarsquos export markets have also been diversified away from an over-reliance on Europe to regional markets in Africa. According to the Kenya Economic Survey 2012 . Africa is the dominant export destination for Kenyan goods, while Asia is the leading source of Kenyarsquos imports. Currently Kenya exports three times more than it did 10 years agomdashmostly manufactured goods and servicesmdashto new markets rather than unprocessed products they sold traditionally. A recent survey of 145 CEOs by the Kenya Private Sector Alliance (KEPSA) found that high energy costs, the high cost of credit, and insecurity are major constraints for Kenyan businesses. Energy topped the list, with 63 percent of surveyed CEOs citing the cost of electricity as a key concern 61 percent mentioned the high cost of credit, and 59 percent mentioned insecurity. Other major concerns were high taxes (54 percent), political instability (50 percent), and poor infrastructure (48 percent). Kenyan CEOs were somewhat less optimistic than their Ugandan and Tanzanian counterparts, with 53.8 percent indicating they are confident about future economic prospects, compared to 65.8 in Uganda and 65.4 in Tanzania. This reflects a significant decrease from the last KEPSA survey, conducted in February 2010, in which 68.6 percent of Kenyan executives expressed confidence. The chairman of KEPSA attributed the decrease to uncertainty regarding the March 2013 elections. The Kenyan government has taken a number of steps to make the country more appealing for foreign and domestic private investment. In August 2008, Prime Minister Raila Odinga began holding quarterly meetings as part of a public-private dialogue called the quotNational Business Agendaquot with the chairpersons of KAM, KEPSA, the East Africa Business Council (EABC), and other business leaders to discuss how to improve the country39s business climate. As a result of the first meeting, Prime Minister Odinga and President Mwai Kibaki ordered that the Port of Mombasa operate on a 24-hour basis, the number of roadblocks and weigh stations on the Mombasa-Nairobi-Busia Northern Corridor Highway be dramatically reduced, and that the Kenya Ports Authority (KPA), the Kenya Bureau of Standards (KEBS), and the KRA harmonize their regulations and adopt a common accreditation and computerized clearance system to expedite cargo inspection and clearance. The government dealt with the port and roadblock issues, and continues to address harmonization issues. Subsequently, President Kibaki and then-Acting Finance Minister John Michuki ordered that VAT be reduced or eliminated on energy inputs. The Treasury announced in late November 2008 that it would suspend a 120 percent excise duty on the manufacture of plastics. In keeping with its privatization strategy, the government announced in mid-December 2008 that it would sell its shares in 16 parastatals, including the National Bank of Kenya, the Kenya Electricity Generating Company (KenGen), the Kenya Pipeline Company, the KPA, and various sugar, cement, dairy, wine, and meat processing firms. The government also put hotels owned by the Kenya Tourism Development Authority up for sale in 2009. In December 2008, the Cabinet approved the proposed legal and institutional framework for public-private partnerships, thereby authorizing private firms to sign management contracts, leases, concessions, and/or build-own-operate-transfer (BOOT) agreements with the government on various infrastructure projects such as water, energy, ports, and roads. The process of privatizing government parastatals to finance a budget deficit stalled in 2010 after Parliament declined to ratify names submitted for the Privatization Commission by then-Finance minister Uhuru Kenyatta on the basis that the appointments violated standing procedures. In November 2011, Finance Minister Njeru Githae appointed members of the commission, clearing the way for the sale of government assets. The newly installed Privatisation Commissionrsquos plan to sell 23 state-owned assets has received Cabinetrsquos approval. Three state-owned hotels, five sugar companies and government-owned Kenya Wine Agencies are top on the list of assets to be privatized. High taxes are a further hindrance to competitiveness for firms operating in Kenya. Consequently, tax evasion is a major concern for the KRA. Kenya has a large number of unregistered or informal businesses known as ldquo jua kali, rdquo which according to the governmentrsquos 2012 Economic Survey engages approximately 80.6 percent of the workforce. In 2013, the KRA is expected to fully roll out an online system to register, file returns, and make payments which is expected to ease tax compliance for businesses in Kenya. According to the Paying Taxes 2013 report by World Bank, International Finance Corporation (IFC), and PricewaterhouseCoopers (PwC), Kenya is ranked 164 th of 185 countries overall for the ease of paying taxes.3 Kenyarsquos total tax rate of 44.4 percent is comprised of 28.1 percent tax on profits, 6.8 percent on labor, and 9.5 percent on other taxes. Regionally, Kenyan firms carry a heavy tax burden, ahead of Tanzania (45.3 percent) and Burundi (53.0 percent), but trailing Uganda (37.1 percent) and Rwanda (31.3 percent). According to the study, Kenya has five different tax payment dates each month for VAT, corporate profits, withholdings, social security, and health. In total, Kenyan firms have to contend with 41 different tax payments cutting across 16 tax regimes, which take 340 person-hours to file, compared to the global average of 27 tax payments and 267 hours. Branches of non-resident companies pay tax at the rate of 37.5 percent the government generally defines taxable income to be income sourced in or from Kenya. VAT is levied on goods imported into or manufactured in Kenya, and on taxable services provided. The standard VAT rate is 16 percent, although the rate charged on a given transaction varies depending on a range of factors. Discussion by the government on VAT in early 2011 focused on reducing or eliminating exemptions to create a broader revenue base rather than raising rates. In March 2011, the Kenya Revenue Authority (KRA) received the ISO 9001:2008 system certification standard for the scope lsquoassessment and collection of revenue for the administration and enforcement of the laws relating to revenue and for connected purposes. rsquo The ISO 9001:2008 standard is the latest publicly available and internationally recognized set of benchmark standards for customer focused quality management principles. Kenya was formally admitted as a full member of the Inter American Centre of Tax Administration (CIAT) during the 45 th General Assembly held in Quito, Ecuador in April 2011. The KRA has been actively involved in CIAT and other major international organizations responsible for setting international standards and best practices in revenue administration. After Kenya joined the Global Forum on Transparency and Exchange of Information for Tax Purposes in July 2010, the KRA also became a member of the Forumrsquos Advisory Panel. This Panel advises the Forumrsquos Steering Committee on strategies to help developing countries combat international tax avoidance. KRA and the Directorate of Customs amp Excise (DGDA) of the Democratic Republic of Congo signed a Memorandum of Understanding (MOU) in Nairobi, Kenya in March 2011. The MOU will enable KRA and DGDA to work more closely towards achieving productive working relations, enhancing enforcement activities and mobilizing revenue collection for both Kenya and the DRC. The cooperation and administrative assistance within the framework of the MOU will be implemented within the national laws and customs regulations in combating offences detrimental to Kenya and the DRC. The MOU will also enhance prevention of transnational organized crimes that range from smuggling to proliferation of weapons of mass destruction and terrorism. In 2011, KRA introduced an online PIN and tax compliance certificate (TCC) verification system. Over the years, the PIN has become a vital document for any individual or company wishing to conduct various transactions, including opening a bank account, registering a title deed, and obtaining various government approvals. Other PIN-required services include importation of goods, payment of deposits for power connections, and government contracts for goods and services. Similarly, a TCC is mandatory for businesses that conduct transactions with government agencies and public bodies. The new verification system, known as the PIN amp TCC Checker, enables the public to verify PIN and TCC for authenticity and validity. The KRA introduced the facility following numerous complaints of fake PINs and TCCs in circulation. The TCC is issued to business companies with a clean tax record and is normally valid for a period of six months. In 2008, President Kibaki signed into law the Anti-Counterfeit Act, which established a dedicated Anti-Counterfeit Agency and created a strong legal framework to combat the widespread trade in counterfeit goods, most often imported to Kenya from Asia. In June 2010, the Ministry of Industrialization launched the Anti-Counterfeit Agency (ACA), which has since struggled to build capacity as a result of insufficient funding. The ACArsquos effectiveness is hindered by a lack of clarity regarding its role and relationship to other Kenyan agencies with a stake in intellectual property protection, such as KRA, the Kenya Bureau of Standards (KEBS), the Kenya Copyright Board, and the Pharmacy and Poisons Board. Interagency cooperation has proved difficult. Furthermore, the government has yet to adopt regulations to guide implementation of the Act. In a separate attempt to combat the importation of counterfeits, the Ministry of Industrialization and the KEBS decreed in 2009 that all locally manufactured goods must have a standardization mark issued by KEBS, and several categories of imported goods, specifically food products, electronics, and medicines, must have an import standardization mark (ISM). Under this new program, U. S. consumer-ready products may enter the Kenyan market without altering the U. S. label under which the product would normally be marketed in the United States but must also carry an ISM. Once the product qualifies for a Confirmation of Conformity, however, KEBS will issue the ISM free of charge. The legislative body of the East African Community (EAC) is currently considering a regional anti-counterfeiting bill, which would harmonize these laws across the five member-states as well as increase the authority of port countries like Kenya to inspect and seize suspicious transit good shipments destined for neighboring land-locked countries. The East Africa Community (EAC), which includes Kenya, Tanzania, Uganda, Rwanda, and Burundi, aims to widen and deepen cooperation among the member-states in political, economic, social, and other fields for mutual benefit. Together, these countries represent a significant economic bloc with a combined population of more than 133 million and a combined gross domestic product of US79 billion. While integration has progressed slowly, the regional group has the potential to become a significant economic and geopolitical player. The EAC Customs Union and Common Market officially came into effect in January and July 2010, respectively, but actual implementation will take a substantial amount of time. Discussions regarding a Monetary Union, and ultimately a Political Federation, have stalled, and are viewed by many observers as unrealistic in the near-term. EAC member states, including Kenya, have not passed many of the laws required to fully implement the Common Market protocol, and enforcement of the Customs Union at border crossings is inconsistent. Among the issues to be resolved are centralized collection of revenue at the first point of entry into the EAC and management of transit cargo in a borderless region. Non-tariff barriers (NTBs) also remain an obstacle to greater EAC integration. A November 2012 report from Trademark East Africa and Transparency International-Kenya focuses on bribery as a major NTB in the EAC where bribery is an expected expense for transportation businesses.4 The EAC has made slow progress towards implementing a Monetary Union and subsequently missed the deadline originally set for 2012. EAC member states have had difficulty agreeing on coordinated approaches to budgets, inflation, foreign exchange reserves, government debts, and exchange rates, harmonization of which will be critical to formation of a Monetary Union with a common currency. Some of the institutions still to be established include a Customs Union Authority, Common Market Authority, Monetary Union Authority, Central Bank for the Monetary Union, and a Unified Federal Treasury. Kenya rose to a rank of 139 out of 176 countries from 154 out of 183countries on Transparency Internationalrsquos (TI) 2012 Corruption Perceptions Index, due to a marginal increase in its score from 2.1 to 2.2. The 2012 Heritage Foundation Index of Economic Freedom places Kenya 103 rd out of 179 countries, an increase of three places compared to the 2011 ratings, despite its score remaining virtually unchanged at 57.5 compared to 57.4 in 2011. The 2013 World Bank Doing Business Survey placed Kenya at 121, a drop of 4 places compared to 2012 and a drop of 37 places since 2009. Kenyarsquos Millennium Challenge Corporation (MCC) scorecard for fiscal year 2013 shows modest gains in government effectiveness, rule of law, control of corruption, land rights and access, and regulatory quality compared to 2012.5 Conversion and Transfer Policies Kenya is an open economy with a liberalized capital account and a floating exchange rate. Kenyarsquos Foreign Investment Protection Act (FIPA) guarantees capital repatriation and remittance of dividends and interest to foreign investors, who are free to convert and repatriate profits including un-capitalized retained profits (proceeds of an investment after payment of the relevant taxes and the principal and interest associated with any loan). Kenya has no restrictions on converting or transferring funds associated with investment. Kenyan law requires the declaration of amounts above Ksh 500,000 (US5,920) as a formal check against money laundering. Foreign exchange is readily available from commercial banks and foreign exchange bureaus and can be freely bought and sold by local and foreign investors. The Kenyan shilling has a floating exchange rate tied to a basket of foreign currencies. A floating exchange rate policy was adopted in Kenya in 1993, allowing the central bank to conduct an independent monetary policy to fight inflation. Interaction between economic agents and firms determine the relative prices between the domestic and foreign currencies (the exchange rate) with the domestic price level left indeterminate. The existing framework requires that the Treasury specifies a price target to be pursued by the Central Bank of Kenya (CBK). The CBK coordinates monetary policy and expectations towards the achievement of the target. This has enhanced the evolution of monetary policy and increased transparency. Since 2008, Kenyarsquos foreign exchange market has experienced, either directly or through contagion effects, six major shocks of differing magnitudes attributable to a number of factors, including: the post-election violence of 2007-2008, the Safaricom initial public offering (IPO) of 2008, the U. S. subprime mortgage crisis in late 2008, the Greek debt and Irish banking crises of 2010, and the oil price surge arising from the political instabilities in the Middle East and North Africa region. In 2011, turbulence in the U. S. and European debt markets sparked a flight to safety, as international investors converted their liquid asset holdings to currencies considered lsquosaferrsquo. The shilling was relatively stable in recent years until late 2007, when it increased significantly in value against the dollar, trading briefly below 60 to the dollar. In the aftermath of the 2008 post-election violence, both the economy and the shilling suffered a serious decline. The shilling stabilized in 2009 and 2010, trading between Ksh 75 and Ksh 82 to the dollar, but high inflation and other factors contributed to severe exchange rate volatility in late 2011. The shilling depreciated to Ksh 107 to the dollar in October 2011 and then appreciated to nearly Ksh 80 to the dollar in late December 2011 as a result of aggressive central bank intervention and lower global prices on imported commodities. To anchor inflationary expectations and stabilize the exchange rate, the CBKrsquos Monetary Policy Committee (MPC) shifted to a tight monetary policy stance in March 2011. The MPC raised the Central Bank Rate (CBR) to 18.00 percent in December 2011 and lifted the banksrsquo cash reserve ratio (CRR) from 4.75 percent to 5.25. In July 2012, the MPC began to lower the CBR which ended 2012 at 11 percent. The decline of year-on-year inflation, which dropped to 3.2 percent in December 2012 from a high of 19.72 percent in November 2011, has given the MPC room to relax monetary policy, which should stimulate credit demand and economic growth. Commercial banks have also lowered their lending rates, though spreads remain on average at approximately 17 percent, as of November 2012. Expropriation and Compensation Kenyan investment law is modeled on British investment law. The Companies Act, the Investment Promotion Act, and the Foreign Investment Act are the main pieces of legislation governing investment in Kenya. Kenyan law provides protection against the expropriation of private property, except where due process is followed and adequate and prompt compensation is provided. Various bilateral agreements with other countries also guarantee further protection. Expropriation may only occur for either security reasons or public interest. The Kenyan government may revoke a foreign investment license if (1) an untrue statement is made while applying for the license the provisions of the Investment Promotion Act or of any other law under which the license is granted are breached or, if (2) there is a breach of the terms and conditions of the general authority. The Investment Promotion Act of 2004 provides for revocation of the license in instances of fraudulent representation to KenInvest by giving a written notice to the investor granting 30 days from the date of notice to justify maintaining the license. In practice, KevInvest rarely revokes licenses. Kenyarsquos judicial system is modeled after the British, with magistratesrsquo courts, high courts in major towns, and a Court of Appeal at the apex of the judicial system. Immediately below the high courts are subordinate courts consisting of the Khadis Courts, the Resident Magistratersquos Courts, the District Magistratersquos Courts, and the Court Martial (for members of the Armed Forces). In addition, a separate Industrial Court hears disputes over wages and labor affairs. Petitioners cannot appeal its decisions, except on procedural grounds. Kenya also has Commercial Courts to deal with commercial disputes. The Companies Act of 1948 provides the foundation for company and investment law. Property and contractual rights are enforceable, but long delays in resolving commercial cases are common. The new constitution, when fully implemented, will change the court system dramatically. Kenya now has a Supreme Court, a Court of Appeal, a Constitutional Court, and a High Court. In addition, the subordinate courts, Magistrates, Khadis, and Courts Martial, will remain, as will the Commercial Court. The former Industrial Court has been replaced with an Employment Relations Court that has expanded authority to hear individual employment-related complaints. The Foreign Judgments (Reciprocal Enforcement) Act provides for the enforcement in Kenya of judgments given in other countries that accord reciprocal treatment to judgments given in Kenya. Kenya has entered into reciprocal enforcement agreements with Australia, the United Kingdom, Malawi, Tanzania, Uganda, Zambia, and Seychelles. Without such an agreement, a foreign judgment is not enforceable in the Kenyan courts except by filing suit on the judgment. Kenyan courts generally recognize a governing-law clause in an agreement that provides for foreign law. A Kenyan court would not give effect to a foreign law if the parties intended to apply it in order to evade the mandatory provisions of a Kenyan law with which the agreement has its most substantial connection, and which the court would normally have applied. Foreign advocates are not entitled to practice in Kenya unless a Kenyan advocate instructs and accompanies them, although a foreign advocate may practice as an advocate for the purposes of a specified suit or matter if appointed to do so by the Attorney General. All advocates in private practice are members of the Law Society of Kenya (LSK). Advocates in public service are not required to join LSK. The legal system in Kenya is adversarial, and most disputes are resolved through litigation in court although arbitration and alternative dispute resolution, which are governed by the Arbitration Act, are becoming increasingly popular. Parties opting to refer their present or future differences to arbitration must include an arbitration clause in their agreement. The authority of an arbitrator appointed by virtue of such an agreement is irrevocable, except by leave of the High Court or unless a contrary intention appears in the agreement. Facilities for alternative dispute resolution are provided by Kenyarsquos Dispute Resolution Centre. In addition, The Chartered Institute of Arbitrators has a Kenya chapter. Kenya is also a member of the International Centre for the Settlement of Investment Disputes (ICSID), a World Bank agreement for the settlement of disputes between States and Nationals of other States. Under this agreement, Kenya is required to recognize ICSID arbitral awards. The Foreign Judgments (Reciprocal Enforcement) Act (Chapter 43, Laws of Kenya) provides for the enforcement in Kenya of judgments given in other countries that accord reciprocal treatment to judgments given in Kenya. The countries with which Kenya has entered into reciprocal enforcement agreements are Australia, Malawi, Rwanda, Seychelles, United Republic of Tanzania, Uganda, the United Kingdom and Zambia. Without such an agreement, a foreign judgment is not enforceable in the Kenyan courts except by filing suit on the judgment. Kenyan courts would, as a general rule, recognize a governing-law clause in an agreement that provides for foreign law. However, the selection of such a law must be real, genuine, bona fide, legal and reasonable. A Kenyan court would not give effect to a foreign law if the parties intended to apply it in order to evade the mandatory provisions of a Kenyan law with which the agreement has its most substantial connection and which, for this reason, the court would normally have applied. Bankruptcies are governed by the Bankruptcy Act (2009) creditors39 rights are comparable to those in other common law countries. Monetary judgments typically are made in Kenyan shillings. The government does accept binding international arbitration of investment disputes with foreign investors. In addition to being a member of the ICSID, Kenya is a party to the New York Convention on the Enforcement of Foreign Arbitral Awards (1958). Kenya is a member of the World Bank-affiliated Multilateral Investment Guarantee Agency (MIGA), which issues guarantees against non-commercial risk to enterprises that invest in member countries. It is also a signatory to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, which established ICSID. Kenya is also a member of the Africa Trade Insurance Agency (ATIA), as well as many other global and regional organizations and treaties, including the Common Market for Eastern and Southern Africa (COMESA) the Cotonou Agreement between the European Union and the African, Caribbean and Pacific States (ACP) the East African Community (EAC) the Paris Convention on Intellectual Property, the Universal Copyright Convention, and the Berne Copyright Convention the World Intellectual Property Organization (WIPO) and the World Trade Organization (WTO). Kenya has also signed double taxation treaties with a number of countries, including Canada, China, Germany, France, Japan, Netherlands, and India. On November 27, 2007, Kenya joined with its EAC sister states in signing the first-ever interim economic partnership agreement (EPA) with the European Community (EC). EPA negotiations between Kenya and the European Union are ongoing. The EAC signed a Trade and Investment Framework Agreement (TIFA) with the United States in 2008. In October 2012, the EAC and the United States launched talks on a new trade and investment partnership that includes a regional investment treaty, a commercial dialogue, and a trade facilitation agreement. Kenya is an active beneficiary of trade preferences under the African Growth and Opportunity Act (AGOA) particularly in textiles and apparel. Performance Requirements and Incentives Investors in the manufacturing and hotel sectors are able to deduct from their taxes a large portion of the cost of buildings and capital machinery. The government allows all locally financed materials and equipment (excluding motor vehicles and goods for regular repair and maintenance) for use in construction or refurbishment of tourist hotels to be zero-rated for purposes of VAT calculation. The Ministry of Finance permanent secretary must approve such purchases. The government permits some VAT remission on capital goods, including plants, machinery, and equipment for new investment, expansion of investment, and replacement. The investment allowance under the Income Tax Act is set at 100 percent. Materials imported for use in manufacturing for export or for production of duty-free items for domestic sale qualify for the investment allowance. Approved suppliers, who manufacture goods for an exporter, are also entitled to the same import duty relief. The program is also open to Kenyan companies producing goods that can be imported duty-free or goods for supply to the armed forces or to an approved aid-funded project. Firms operating in Export Processing Zones (EPZ) are provided a 10-year corporate tax holiday and 25 percent tax rate thereafter (the statutory corporate tax rate is 30 percent, but the overall tax rate is 44.4 percent) a 10-year withholding tax holiday on dividend remittance duty and VAT exemption on all inputs except motor vehicles 100 percent investment deduction on capital expenditures for 20 years stamp duty exemption exemption from various other laws exemption from pre-shipment inspection availability of on-site customs inspection and work permits for senior expatriate staff. Kenyarsquos EPZ law allows manufacturers and service providers to sell up to 20 percent of their output in the domestic market. Manufacturers are liable for all taxes on products sold domestically, however, plus a 2.5 percent surcharge. By the end of 2011, Kenya had 44 designated EPZs in which 79 companies were operating. Most EPZ firms operate in factory space managed by the EPZ Authority (EPZA). According to figures provided by the EPZA for 2011, EPZ firms employed 32,043 Kenyans and 421 expatriates, who typically serve in mid to senior-level management roles. EPZ firms exported goods worth US438.2 million in 2011, or roughly 8 percent of total Kenyan exports. The preferential access and duty free status accorded to Kenyan apparel exports under AGOA fueled an increase in the number of textile factories in Kenya, which along with handicrafts, constitute the bulk of Kenyarsquos exports under AGOA. EPZ firms servicing AGOA-related contracts employ nearly 80 percent of all EPZ workers and account for roughly 50 percent of total EPZ exports. Kenyan EPZ firms exporting under AGOA employed 25,169 workers directly in 2011, and exported goods worth nearly US236 million, according to the EPZA. In order to better take advantage of AGOA, in 2011 Kenyarsquos Ministry of Trade launched an AGOA Unit charged with developing and implementing a national AGOA strategy conducting research and market analysis to inform AGOA policies and activities identifying products for potential export under AGOA advising the Minister of Trade on all AGOA-related matters performing regional and county-level outreach to educate the Kenyan public about AGOA and liaising with AGOA stakeholders across the Kenyan government and within the private sector and civil society. The governmentrsquos Manufacturing Under Bond (MUB) program is meant to encourage manufacturing for export by exempting participating enterprises from import duties and VAT on imported plant, machinery, equipment, raw materials, and other imported inputs. The program also provides a 100 percent investment allowance on plant, machinery, equipment, and buildings. Participating companies must export goods produced under the MUB system. If not exported, the goods are subject to a surcharge of 2.5 percent, and imported inputs used in their production are subject to all other tariffs and other import charges. The program is open to both local and foreign investors, and is administered by the KRA. Under the Firearms Act and the Explosives Act, manufacturing and dealing in firearms (including ammunition) and explosives requires special licenses from Chief Firearms Licensing Officer and the Commissioner of Mines and Geology, respectively. Technology licenses are subject to scrutiny by the Kenya Industrial Property Institute (KIPI) to ensure that they are in line with the Industrial Property Act. Licenses are valid for five years and are renewable. Manufacturing and dealing in narcotic drugs and psychotropic substances is prohibited under the Narcotics Drugs and Psychotropic Substances Act. The government does not steer investment to specific geographic locations but encourages investments in sectors that create employment, generate foreign exchange, and create forward and backward linkages with rural areas. The law applies local content rules but only for purposes of determining whether goods qualify for preferential duty rates within COMESA and the EAC. Although Kenya does not generally set minimums for Kenyan ownership of private firms or require companies to reduce the percentage of foreign ownership over time, a number of sectors do face restrictions. According to the World Bankrsquos 2010 Investing Across Borders Report . Kenya restricts foreign ownership in more sectors than most other economies in sub-Saharan Africa. Foreign ownership of insurance and telecommunications companies is restricted to 66.7 percent and 80 percent, respectively, although the government allows telecommunications companies a three-year grace period to find local investors to achieve the local ownership requirements. There is discussion of scrapping the local ownership policy in telecommunications entirely. Foreign equity in companies engaged in fishing activities is restricted to 49 percent of the voting shares under the Fisheries Act. In June 2007, the level of foreign ownership allowed for companies seeking a listing on the NSE was decreased from 75 to 60 percent. This change was not applied retroactively. Foreign investors are free to obtain financing locally or internationally. As noted above, there is no discrimination against foreign investors in access to government-financed research, and the government39s export promotion programs do not distinguish between local and foreign-owned goods. Right to Private Ownership and Establishment Private enterprises can freely establish, acquire, and dispose of interest in business enterprises. The Kenyan legal system is quite flexible on exit options, which normally are determined by the agreement that the investor has with other investors. The Companies Act specifies how a foreign investor may exit from an incorporated company. In practice, a company faces no obstacles when divesting its assets in Kenya, if the legal requirements and licenses have been satisfied. The Companies Act gives the procedures for both voluntary and compulsory winding-up processes. Many U. S. companies remain in the market and continue to do well. The typical reason given for a firm closing its factories in Kenya is restructuring to cut costs and improve efficiency in its African markets. The high cost of production as a result of poor infrastructure, inadequate protection of intellectual property rights, and unreliable and expensive electrical power continues to frustrate Kenyarsquos manufacturing sector, even as economic growth forges ahead. As noted above, the Land Control Act restricts the ability of foreigners to own or lease land classified as agricultural, and requires a presidential waiver. Furthermore, under the new constitution only Kenyan citizens, whether male or female, or incorporated companies whose majority shareholders are Kenyan citizens may own land foreigners are restricted to 99 year leases. Since January 2003, the government sought to nullify all illegally acquired land. The question of title to land acquired irregularly under the Moi government is the subject of continued controversy. This issue is of particular importance to overall economic performance and access to credit as land secures approximately 80 percent of bank loans in Kenya. Kenya has a long history of land-related conflict and corruption. Despite the agreement that ended the 2007-2008 post-election violence, there has been considerable delay in implementing land reforms. Agenda 4 of the National Accord that formed the Grand Coalition Government in 2008 sought to address historical injustices in terms of land ownership and distribution. Many land transactions continue to suffer delay since the moratorium placed on public and trust/community land by the Cabinet in 2012 will only cease when members of the newly appointed National Land Commission (NLC) take office. The NLC was created to manage public land, advise the government on land policy, and investigate and recommend solutions to current and historical land-related conflicts or injustices. Protection of Property Rights Secured interests in property are recognized and enforced. In theory, the legal system protects and facilitates acquisition and disposition of all property rights, including land, buildings, and mortgages. In practice, obtaining a title to land is a cumbersome and often non-transparent process, which is a serious impediment to new investment, frequently complicated by improper allocation of access and easements to third parties. There is also a general unwillingness of the courts to permit mortgage lenders to sell land to collect debts. Kenya has a comprehensive legal framework to ensure intellectual property rights (IPR) protection, which includes the Anti-Counterfeit Act, the Industrial Property Act, the Trade Marks Act, the Copyright Act, the Seeds and Plant Varieties Act, and the Universal Copyright Convention. However, enforcement of IPR continues to lag far behind legislation, and the widespread sale of counterfeit goods continues to do significant damage to foreign businesses operating in Kenya. Furthermore, Kenyan authorities are limited in their ability to inspect and seize transit shipments of counterfeit products, which the authorities believe often find their way back into Kenya. As noted above, the 2008 Anti-Counterfeit Act created the Anti-Counterfeit Agency (ACA), which officially opened its doors in 2010, as the lead agency for IPR enforcement6. Insufficient funding and the conspicuous absence of implementing regulations to accompany the act continue to constrain the Agencyrsquos effectiveness. Independent investigations have proven nearly impossible for the ACA given its current budget and the prohibitively high cost of environmentally sound destruction of seized products, meaning counterfeit goods remain in warehouses where they can be stolen and returned to the market. The Agency is ostensibly responsible for coordinating the efforts of Kenyarsquos other IPR enforcement bodies, including the Kenya Bureau of Standards (KEBS), the Kenya Copyright Board (KCB, responsible for copyrights), the Kenya Industrial Property Institute (KIPI, responsible for patents, trademarks, and trade secrets), the Pharmacy and Poisons Board (PPB, responsible for medicines). Interagency cooperation has proved difficult to achieve. Despite the challenges, the Agency has made a number of high-profile seizures of counterfeit goods shipments including Bic pens, HP toner cartridges, Eveready batteries, Nokia cellular phones, Adidas shoes, and a range of other products. Furthermore, penalties under the Anti-Counterfeiting Act are much more punitive than under previous IPR laws. However, Kenyarsquos law enforcement agencies have failed to implement the improved laws and regulations and convictions are rare. Kenyarsquos High Court ruled on April 20, 2012 that parts of the 2008 Anti-Counterfeit Act are unconstitutional, in particular the Actrsquos definition of counterfeit medicines and certain related sections. The Court argued that enforcement of the violating sections could limit access to generic medicines and, as a result, infringe on the fundamental rights to life, human dignity, and health enshrined in the countryrsquos new constitution. ACA has said it plans to appeal and is confident the ruling will be overturned. The Agency also plans to offer up revisions to the Act that would prevent future challenges on similar grounds. In another effort to combat the manufacture and sale of counterfeits, the Ministry of Industrialization and KEBS implemented a system of standardization marks required for locally manufactured products as well as certain imported goods, discussed below. KEBS also opened the National Quality Institute in 2008 to train business leaders and consumers. Initially KEBS planned that the Institute would offer IPR courses to magistrates who, along with prosecutors, are often unfamiliar with intellectual property law, but the program has not yet been established. Kenyarsquos Copyright Act protects literary, musical, artistic, and audio-visual works sound recordings and broadcasts and computer programs. The act is enforced by KCB, a parastatal housed under the Attorney Generalrsquos Office. Criminal penalties associated with piracy in Kenya include a fine of up to Ksh 800,000 (US9,470), a jail term of up to ten years, and confiscation of pirated material. Nonetheless, enforcement is spotty and the understanding of the importance of intellectual property remains low. The sale of pirated audio and video is rampant, although there is little domestic production. According to the Business Software Association (BSA), an estimated US3.5 million is lost every year because of the use of illegal software, mainly by businesses. Kenya is a member of the World Intellectual Property Organization (WIPO) and of the Paris Union (International Convention for the Protection of Industrial Property), along with the United States and 80 other countries. The African Intellectual Property Organization (AIPO) embodies a future prospect for patent, trademark, and copyright protection, although its enforcement and cooperation procedures are still untested. Kenya is also a member of the African Regional Intellectual Property Organization (ARIPO). Kenya is a signatory to the Madrid Agreement Concerning the International Registration of Marks however, the other original EAC members (Uganda and Tanzania) are not. The Kenya Industrial Property Institute (KIPI), housed within the Ministry of Trade and Industry, is responsible for registering and enforcing patents, trademarks, and trade secrets. Investors are entitled to national treatment and priority right recognition for their patent and trademark filing dates. In addition to creating KIPI, the Industrial Property Act of 2002 brought Kenya into compliance with WTO obligations, although implementation of the act remains weak. The Trade Marks Act provides protection for registered trade and service marks protection under the act is valid for 10 years and is renewable. In July 2006, the Ministry of Trade and Industry conceded that over Ksh 36 billion (US405 million) is lost annually due to the sale of counterfeit goods and a further Ksh 6 billion (US67 million) is lost in tax revenues to the government. A subsequent KAM study, released in late October 2008, concluded that piracy and counterfeiting of business software, music, pharmaceuticals, and consumer goods costs Kenyan firms about US715 million annually in lost sales. Consequently, KAM estimated that the Kenyan government was losing over US270 million in potential tax revenues every year. The most current estimates as of late 2011, summarized in a report by the International Peace Institute called ldquo Termites at Work: Transnational Organized Crime and State Erosion in Kenya, rdquo put Kenyarsquos counterfeit goods trade at US913.8 million, resulting in lost tax revenue between US84 million and US490 million. The technology firm HP estimates losses of US7.1 million per year due to counterfeits and 60 percent of HP-branded printer cartridge refills sold in East Africa are thought to be fakes imported from China. Battery manufacturer Eveready significantly reduced its Kenyan production due to pressure from counterfeiters. Transparency of Regulatory System The government screens each private sector project to determine its viability and implications for the development aspirations of the country for example, a rural agro-based enterprise, with many forward and backward linkages, is likely to receive licensing quickly. In theory, all investors receive equal treatment in license screening processes. However, new foreign investment in Kenya historically has been constrained by a time-consuming, highly discretionary, and sometimes corrupt approval and licensing system. In response to appeals from the business community in 2007, the government launched a substantial effort to streamline the registration process by reducing the number of required business licenses and simplifying others. The Licensing Act of 2007 initially eliminated or simplified 694 licenses and in 2008, the government reduced the number of licenses to set up a business from 300 to 16. The review of licensing requirements is ongoing, but no further licenses have been eliminated to date. In 2009, the Kenyan government launched an e-Registry, which sped up the registration of new companies, cut regulation costs, and enhanced transparency by allowing easy access to information on registered companies. Nonetheless, the 2013 World Bankrsquos Doing Business Report placed Kenya at just 121 of 185. Kenya has fallen behind Uganda, but remains ahead of Tanzania for ease of doing business. The World Bank and IFC contend that the government must significantly reduce the cost of doing business, deal with delays at the Port of Mombasa, and eliminate the requirement of even more licenses to maintain Kenya39s current level of economic growth. In August 2011, the Finance Minister put the Competition Act of 2010 into effect, thereby replacing the outdated Monopolies and Price Control Act and the Monopolies and Prices Commission. Specifically, the Act created the Competition Authority, which is an autonomous public institution that has primary jurisdiction over competition and consumer welfare matters in the economy and is the Governmentrsquos advisor on competition matters. All mergers and acquisitions require the Authorityrsquos authorization before they are finalized. In September 2011, in response to rapidly rising food and fuel prices, President Kibaki signed into law a new Price Control (Essential Goods) Act, which granted the Finance Minister the authority to set price ceilings for any goods designated as essential. The Finance Minister has not exercised this authority, however, and many observers believe the act was simply an attempt to appear responsive to public concerns, rather than a meaningful shift in policy. Kenya lags behind much of Africa with regard to reliability of supply chains, according to a 2012 World Bank survey on trade logistics. Kenya ranked 122 nd out of the 155 countries studied for efficiency in key supply chain areas such as customs procedures, cost of logistics, infrastructure quality, and timeliness. Through the Port of Mombasa, Kenya is a major hub for international and regional trade for neighboring land-locked countries such as Uganda, Burundi, and Rwanda. The survey, however, found that the cost of importing or exporting containers in Kenya and other large economies in Africa remains high compared to the global average. According to the World Bankrsquos Doing Business 2013 report, it takes an average of 26 days and costs US2,350 to complete import procedures for a standardized container of cargo. It takes 26 days and costs US2,255 to complete export procedures for a similar container. In addition to insufficient capacity, corruption is thought to be a major contributor to delays at the Port of Mombasa: in order to free up space inside the port, goods are moved to privately-owned container freight stations (CFS) for customs clearing and onward haulage. These CFSs are suspected of serving as a primary conduit for corruption and facilitating illicit trade. Moreover, they have little incentive to clear cargo efficiently, given that storage fees represent a large share of their revenue. Investors in Kenya are required to comply with environmental standards. The National Environment Management Authority (NEMA) oversees these matters and is the principal environmental regulatory agency. Developers of certain types of projects are required to carry out Environmental Impact Assessments (EIA) prior to project implementation. Companies are required to submit up-to-date assessment reports to NEMA for verification by the agencyrsquos environmental auditors before they can receive an EIA license. Efficient Capital Markets and Portfolio Investment The CBK is the primary regulator of financial institutions. As of June 2012, Kenya had 44 banking institutions (43 commercial banks and 1 mortgage finance company), five representative offices of foreign banks, six deposit-taking microfinance institutions (DTMs), 115 forex bureaus and two credit reference bureaus (CRBs). Out of the 44 banking institutions, there are 31 locally owned banks: three with public shareholding and 28 privately owned while 13 are foreign owned. The six DTMs, two CRBs and 115 forex bureaus are privately owned. The foreign owned financial institutions comprise of nine locally incorporated foreign banks and four branches of foreign incorporated banks. Total aggregate financial sector assets grew by 16 percent to Ksh 2.2 trillion (US26 billion) in the year to June 2012. During the same period, financial sector pre-tax profits grew by 30 percent to more than Ksh 53 billion (US627 million).7 By the end of 2011, 10 Kenyan banksmdashincluding Kenya Commercial Bank, Commercial Bank of Africa, and Bank of Africamdashhad subsidiaries operating in the EAC and South Sudan. These subsidiaries registered profit before tax of Ksh 2.3 billion (US27 million), with South Sudan, Tanzania, and Uganda accounting for the majority of profits.8 In July 2012, Central Bank of Kenya (CBK) granted authority to Bank of China Limited (BOC) to open a representative office in Kenya. BOC is the fifth foreign bank to receive such authorization. In November 2012, Kenyan banks were authorized to open Yuan-denominated accounts to ease China-Kenya trade. China exported goods worth US1.7 billion to Kenya in 2011, making it Kenyarsquos third largest source of imports behind the United Arab Emirates and India. Bank branches increased by 98 to 1,161 branches in 2011 and each of the countryrsquos 47 counties had a branch. Increased usage of the agency banking model, introduced in May 2010, allows commercial banks to offer banking services through third parties. Increasing access to finance has been abridged with the use of innovation such as agent banking, which allows commercial banks and DTMs to engage the services of third party outlets to deliver specified financial services on their behalf. Following the roll out of the agency banking model in May 2010, commercial banks have been able to contract varied retail entities. These entities, such as security companies, courier services, pharmacies, supermarkets and post offices act as third party agents to provide cash-in - cash-out transactions and other services in compliance with the laid down guidelines. As of June 2012, ten commercial banks had contracted 12,067 active agents facilitating over 20.4 million transactions valued at Ksh 104.4 billion (US1.24 million). As at 31st December, 2011, 23 banks were offering various internet products to their customers. Internet services provided include opening accounts, transferring funds to different accounts, online viewing of the accounts, online inquiries and requests, online salaries payments, clearing checks status query and instant alerts or messages of account status. The banking industry in Kenya in collaboration with the Kenya Bankers Association (KBA) rolled out the Check Truncation System in August 2011. Check truncation refers to a process in which physical checks presented for payment in a bank by individuals or corporate bodies are converted into electronic form and the image transmitted electronically to the clearing house for processing and eventual payment by the paying bank. The introduction of this system is expected to speed up clearing of such checks in addition to reducing incidences of frauds and the costs of transporting these checks from one bank to another. Though small by Western standards, Kenyarsquos capital markets are the deepest and most sophisticated in East Africa. Investors trade stocks and bonds on the Nairobi Securities Exchange. The Capital Markets Authority (CMA), in conjunction with the Central Bank of Kenya, regulates and supervises relevant financial institutions and intermediaries, and oversees the development of Kenyarsquos capital markets. In late 2012, the CMA launched the development of a new, five-year capital markets master plan, which is being designed by market experts and participants, including private sector and government representatives The CMA is working with regulators in EAC member states through the Capital Market Development Committee (CMDC) and East African Securities Regulatory Authorities (EASRA) on a regional integration initiative, and has successfully introduced cross-listing of equity shares. Beginning in 2005, the NSE started settling all equity trades through an electronic Central Depository System (CDS). The combined use of both CDS and an automated trading system has moved the Kenyan securities market to globally accepted standards. Kenya is a full (ordinary) member of the International Organization of Securities Commissions, (whose members represent 90 percent of the world39s capital markets), which solidifies its status as a primary capital marketplace in East Africa. In 2011, the NSErsquos All Share Index (NSEASI) dropped by 30 percent due to a weak and volatile shilling, high commodity prices, and the ongoing global credit crisis. The NSEASI went up by 35 percent in 2012, however, surging on the back of a stable shilling and declining inflation, despite lingering economic problems in the West. The NSE consists of three segments: the Main Investments Market (MIMS), the Alternative Investments Market (AIMS), and the Fixed Income Securities Market (FISMS). The MIMS targets mature companies with strong dividend streams. The AIMS is more favorable to small and medium-sized companies, and allows firms to access lower-interest rate, longer-term sources of capital. The FISMS allows businesses, financial institutions, and governmental and supranational authorities to raise capital through the issuance of debt securities. Fees charged by the CMA on NSE participants are a significant entry barrier for new companies. Small business entry into the stock market continues to lag, though the CMA plans to launch a new securities exchange for SMEs, which will have less onerous regulatory requirements. Though still a nascent industry, foreign and domestic private equity funds are increasingly active in Kenya, providing growth capital to entrepreneurs and helping turn around struggling businesses. Stockbrokers at the Nairobi Stock Exchange are seeking to reduce the ownership stake of the Ministry of Financersquos Capital Markets Authority from 20 percent to 5 percent. The NSE is in the process of becoming a demutualized corporate entity, which itself will become a publicly-traded company. To facilitate the listing of Small and Medium Sized Enterprises (SMEs), NSEmdashin collaboration with the CMA and the Central Depository and Settlement Corporation (CDSC)mdashorganized the Growth Enterprise Market Segment (GEMS). In June 2012, the establishment of GEMS received a major boost when the government officially published new listing regulations for SMEs. The NSE is working with the CMA to publish the rules for Nominated Advisors (NOMADS), who will assist SMEs to become publicly traded companies and comply with corporate governance standards. By amending the Central Depositories Act, the Ministry of Finance seeks to create a single central depository for both equity and debt securities. At present, equity and debt are settled through separate depositories, creating inefficiencies and higher settlement costs. A streamlined securities settlement infrastructure would support Treasury Mobile Direct, which is a joint CBK and World Bank project that will enable Kenyans to trade government debt securities using their mobile phones. Mobile and Internet solutions are already available for trading equities. Although equities trading is fairly robust, the bond market is still underdeveloped and dominated by trading in government debt securities. Long-dated corporate bond issuances are uncommon, leading to a lack of long-term investment capital. Listed companies, including banks, are therefore heavily reliant on short-term debt, which is relatively expensive and exposes borrowers to undue short-terms risks. Trading in commercial paper and corporate bonds issued by private companies has diversified activity at the NSE. The government regulates such trading through a set of guidelines developed in collaboration with private sector. They allow private companies to raise funds from the public without NSE quotation. Establishing the CDS encouraged the development of a secondary market for the governmentrsquos one-year Treasury security. The CDS provided opportunities to small investors by offering products in multiples of Ksh 50,000 (US590) up to Ksh 1 million (US11,830). Expenses related to credit rating services by listed companies and other issuers of corporate debt securities are tax deductible. Foreign investments through mergers and acquisitions are not restricted via cross-shareholding and stable shareholder arrangements. Hostile takeover attempts are uncommon. Private firms are free to adopt articles of incorporation, which limit or prohibit foreign investment, participation, or control. Foreign investors are able to obtain credit on the local market however, the number of credit instruments is relatively small. Legal, regulatory, and accounting systems are generally transparent and consistent with international norms. The corporate tax for newly listed companies is 25 percent for a period of five years from the date of listing. The withholding tax on dividends is 7.5 percent for foreign investors and 5 percent for local investors. Foreign investors can acquire shares in a listed company subject to a minimum reserve ratio of 40 percent of the share capital of the listed company for domestic investors, with the remaining 60 percent considered as a free float available to local, foreign, and regional investors without restrictions on the level of holding. Dividends distributed to residents and non-residents are subject to a final withholding tax rate of 5 percent. Dividends received by financial institutions as trading income are not subject to tax. In 2007, the Kenyan government granted two fiscal incentives to encourage growth of capital markets: exemption from income tax on interest income accruing from cash flows of securitized assets and exemption from income tax on interest income accruing from all listed bonds with a maturity of at least three years. The fiscal incentives targeted providers of infrastructure services such as roads, water, power, telecommunication, schools, and hospitals. Company capital expenditures on legal costs and other incidental expenses associated with listing by introduction at the NSE are tax deductible. In 2009, as a way of widening the investor base and promoting savings among Kenyans, the CBK reduced the minimum entry into treasury bills from Ksh 1 million to Ksh 100,000 (US11,800 to US1,190). Infrastructure bonds were issued in 2009. The primary corporate bond market is, however, still dominated by a few leading institutions, with a thinly traded secondary market. The bond market is currently led by government securities, and the corporate bond market accounts for only 9 percent of issuances. In 2009, the government issued a 20-year treasury bond as part of its efforts to deepen the pool of long-term capital available locally. To restore market confidence, CBK and the market players introduced Sell-Buybacks, similar to repurchase agreements, in October 2011 to provide liquidity for bondholders who required immediate cash but faced difficulties in selling their bonds. Sell-buybacks refers to transactions where two parties, a seller and a buyer agree to exchange a security for cash at a bilaterally agreed price with a promise to reverse the same security and cash at a future date for a specific price. The introduction of sell-buybacks safeguarded bond values, provided liquidity to investors, and reduced panic-induced bond sales. The result is a more stable bond market. The next expected market development is the introduction of over the counter (OTC) bond trading, which will further enhance market liquidity and stability. Several initiatives have been undertaken over the last five years aimed at achieving the three envisaged goals of stability, efficiency and financial inclusion. These initiatives include the introduction of the agent banking mechanism in May 2010 where banks were allowed to engage third parties to provide certain banking services the introduction of credit reference bureaus to collect, collate, analyze and disseminate credit information among credit providers licensing of deposit taking microfinance institutions (DTMs) to target the lower end of the market, through the Microfinance Act, 2006 (now there are eight of them) the rollout of mobile phone financial services enabling banks to leverage on mobile phone technology to present convenience and lower costs for their customers without compromising quality of service and lowering the cost of doing business through the establishment of more currency centers. Since the enactment of the Cooperative Societies (Amendment) Act of 2004, which governs the formation and management of cooperatives in Kenya there have been improvements in the financial sectorrsquos legal and regulatory framework. To regulate Kenyarsquos burgeoning insurance industry, Parliament passed the Insurance Amendment Act 2006, which resulted in the establishment of the Insurance Regulatory Authority. Parliament passed the Sacco Act in 2007 to strengthen the savings and credit cooperative (Sacco) industry. As a result, access to financial services has improved, especially for those previously unable to take advantage of financial services from traditional banks. Mobile money has grown in size and popularity and now provides transfer, deposit, lending, and insurance services to the large majority of Kenyans who do not have access to traditional banking services. Only 19 percent of Kenyans have formal access to financial services through commercial banks and the government-owned Post Bank. With the advent of mobile money and its recent linkages to the formal banking system, however, the number of Kenyans with access to electronic financial services has grown rapidly. Kenya has now become a leader in financial inclusion and its example is being replicated in countries around the world. With 29 million cell phone subscriptions, the vast majority of Kenyan adults now have cell phone access, which they use for everything from voice and SMS communication to banking, insurance, internet access, and other services. According to the World Bank, M-Pesa processes more transactions within Kenya each year than Western Union does globally. As of June 2012, 19.8 million Kenyans were using mobile phone platforms to make transfer money, according to CBK figures. There were over 61,000 agents facilitating transactions in excess of Ksh 1.3 trillion (US15.4 billion) in the year to June 2012. The CBK said the increase in mobile money transfers was fuelled by a high number of consumers moving money in their bank accounts using mobile phones. Safaricomrsquos M-Pesa, which has a 76 percent market share, has mobile banking arrangements with 25 banks, which has contributed to greater accessibility of the service. Customers have also increased the use of bank platforms through a wide array of services. Mobile money platforms have been used to offer medical insurance, microloans, transfer money to a pre-paid credit card, and even to pay parking, electricity, and water bills. Beyond money transfers, Kenyans are using mobile phones to disseminate commodity price information, track diseases, monitor social unrest and human-rights violations, mobilize voters, and disseminate election results. Microfinance institutions (MFIs) also provide financial services to many Kenyans who remain underserved by the traditional financial markets. The Microfinance Act of 2006 became operational in 2008 and provides for the licensing, regulation, and supervision of the microfinance sector. These regulations were prompted by a series of mismanagement and embezzling scandals at micro-finance institutions. The Act also grants regulatory oversight authority of MFIs to the CBK. In 2003, the inter-ministerial National Taskforce on Anti-Money Laundering and Combating the Financing of Terrorism was formed to develop a comprehensive AML/CTF legal framework. In 2012, Kenya passed the Prevention of Terrorism Act, which criminalizes acts of terrorism and conspiracy to commit such acts. This law provides for the restraint, seizure, and forfeiture of terrorist assets. In 2010, Kenya passed the Prevention of Organised Crime Act, which allows for the prosecution of criminal groups that commit serious offenses and allows for asset forfeiture. Kenya has designated Al Shabaab as an organized criminal group. The Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), passed in 2009, criminalized money laundering, and provided for the creation of a Financial Reporting Center (Kenyarsquos version of a financial intelligence unit), and an Assets Recovery Agency. With this legal structure in place, Kenya must now work towards implementing these laws and creating functional institutions. Despite these advances, the Financial Action Task Force (FATF) raised concerns over Kenyarsquos inability to address deficiencies in its AML/CFT regime as outlined in the jointly developed FATF Action Plan in 2010. A key element of the plan was establishing a financial reporting center. Kenya created the FRC in April, 2012, obtained office space and is hiring staff. It currently has four investigators, an attorney, and administrative staff. To become operational, the FRC needs an automated system to analyze suspicious transaction reports (STRs). The FRC issued guidance notes to commercial banks, non-bank financial institutions, and mortgage finance companies about their responsibilities regarding working with the FRC and began receiving STRS on October 10, 2012. The June 2012 FATF Public Statement advised Kenya that countermeasures by FATF members against Kenya could be applied if Kenya did not show significant progress by the October 2012 FATF meeting and specifically cited the lack of terrorist financing legislation. Kenya passed the Prevention of Terrorism Bill in 2012, which criminalized material support to commit a terrorist act, and addressed a key element in the implementation of the FATF Action Plan. At its October 2012 meeting, the FATF did not impose countermeasures against Kenya. Competition from State-Owned Enterprises Public ownership of enterprise expanded from independence in 1963 through the 1980s. However, two commissions, one in 1979 and one in 1982, established the need for Kenya to begin divesting itself of its publicly owned enterprises. The commissions identified 240 state-owned firms, designating 207 as non-strategic and the remaining 33 as strategic. During the first round of privatization, from 1992 to 2002, Kenya fully or partially privatized most of the non-strategic publicly owned firms. From 2003 to 2007, the government of Kenya engaged in a second round, which fully or partially privatized a number of large strategic firms, including KenGen (the primary electricity generator), Kenya Railways, Mumias Sugar, Kenya Reinsurance, Telkom Kenya, and Safaricom. These transactions netted over US1 billion for development and infrastructure spending. The third round of privatization is scheduled to last through 2013 and includes the Development, Consolidated and National Banks of Kenya, five sugar companies, the Kenya Wine Agencies, nine hotels, facilities owned by the Kenya Ports Authority, the Agrochemical Food Company, the remainder of KenGen, East African Portland Cement, the Kenyan Meat Commission, the New Kenya Cooperative Creameries, the Numerical Machining Complex, and several power stations. In general, competitive equality is the standard applied to private enterprises in competition with public enterprises. However, certain parastatals have enjoyed preferential access to markets. Examples include Kenya Reinsurance (Kenya-Re), with a guaranteed market share Kenya Seed Company, with fewer marketing barriers than its foreign competitors and the Kenya National Oil Corporation (KNOC), which benefits from retail market outlets developed with government funds. Some state corporations have also benefited from easier access to government credit at favorable interest rates. The Kenyan government seems determined to remove itself from competition with private enterprise, except in certain strategic areas. The government substantially divested the telecom sector from 2002 to 2007, which now benefits from competition. The sugar industry has been partially privatized and will be fully privatized with the next round of divestitures. The energy industry remains the most publicly owned sector in Kenya. The Kenyan government wholly owns the National Oil Corporation, the Kenya Pipeline Corporation, and the oil refinery in Mombasa therefore, competition is either restricted or limited. KenGen, Kenya Power and Lighting, and the newly formed Geothermal Development Corporation dominate the electricity generation portion of the energy sector, which is another restricted portion of the Kenyan economy. The primary port in Mombasa is mostly government owned but privatization efforts are underway. Beyond these sectors, competition is expected and encouraged among private enterprise in Kenya. Corporate Social Responsibility Kenya has only recently begun to apply the concept of corporate social responsibility (CSR). The United Nations initiated discussions under the auspices of the UN Global Compact in Kenya for the introduction of the UN Global Compact/UNDP quotGrowing Sustainable Business for Poverty Reduction Initiative. quot In Kenya, surveys suggest that the highest proportion of corporate donations go to health and medical services. In addition, corporations direct funds towards education and training, HIV/AIDS, agriculture and food security, and underprivileged children. The rationale for these philanthropic activities is closely tied to a sense that companies should give something back to the nation and to the communities in which they operate. In Kenya, many companies in the export-processing sector are seeking to mainstream HIV/AIDS programs into their activities as well as other workplace issues. Local campaigns have focused attention on labor rights and abuses in Kenyan export sectors such as textiles, cut flowers, and horticulture. Some companies are taking a positive lead on labor standards, for example Cirio Del Monte is now accredited to the SA8000 standard. The bulk of the business community is challenged to create quality jobs by paying living wages and observing fundamental labor rights. Given that employment creation is one of the most pressing concerns in Kenya, workplace issues, particularly the trade-off between the creation of jobs and internationally accepted working conditions, are likely to remain at the heart of the CSR agenda. In Kenya, there are relatively few incentives for businesses to adopt responsible or pro-development practices. Few consumers are sufficiently informed or able to pay a premium for responsibly produced goods. While some companies producing for export markets are subject to labor or environmental requirements imposed by overseas buyers, producers selling into the domestic market are unlikely to be subject to such pressures. Even pressures within export markets are patchy, depending on the sector, product, and buyer. A similar gap is apparent between large companies operating in the formal sector, and smaller companies or micro-enterprises, which operate below the radar. Given an economic context in which financial margins are generally very thin, companies are unlikely to adopt higher standards voluntarily unless there is a clear business incentive to do so. The disputed 2007 presidential election sparked a devastating episode of ethnically-charged political violence, resulting in approximately 1,200 deaths and the displacement of more than 300,000 people. Property damage was in the millions of dollars and agriculture alone suffered US300 million in damages. The 2007-2008 post-election violence was investigated by the governmentrsquos Waki Commission, which identified a number of prominent Kenyan politicians as chief instigators of much of the violence. In December 2010, the International Criminal Court (ICC) released the names of five high-ranking Kenyan government officials and one journalist, whom the Court named as suspects in the incidents of political violence four of the six were subsequently charged formally with crimes against humanity. Deputy Prime Minister Uhuru Kenyatta and Member of Parliament William Ruto, who are expected to run for president and deputy president in the March 2013 elections, are among the four indicted suspects. Trials are scheduled to begin in April 2013. It is widely hoped that ongoing implementation of Kenyarsquos new constitution, approved by a two-thirds majority in a violence-free referendum in 2010, will prevent a re-emergence of violence during elections scheduled for March 2013. However, the constitution calls for a restructuring of many key national institutions, transitioning many powers and functions to newly established county governments. This process is expected to take many years to implement fully. Among other issues, implementation of police, land tenure, and judicial reforms agreed to in the power sharing agreement that ended the 2007-2008 post-election violence have been slow. The United States maintains a travel warning for Kenya due to the threat of terrorism and violent crime. Kenyarsquos military incursion into Somalia, which was in response to a series of high-profile kidnappings near the Kenya-Somalia border, has heightened security concerns and led to increased security measures at businesses and public institutions around the country. In addition to the kidnappings, Kenya suffered a series of bombings and grenade attacks targeting Kenyans in northern Kenya and in Nairobi. To date, these attacks have not appeared to target commercial projects or installations. As noted above, security expenditures represent a substantial operating expense for businesses in Kenya. Kenya maintains friendly relationships with all of its immediate neighbors, although there are strong rivalries against it as the dominant economy in the region from other EAC partners. It remains an active participant in the EAC, which includes both commercial and political initiatives, as well as the Intergovernmental Authority on Development (IGAD), an eight-country multilateral organization that coordinates efforts to mitigate the effects of regional challenges such as drought, famine, and economic hardship. Kenya is also an active participant in the Common Market for Eastern and Southern Africa (COMESA). The Kenyan government has strong ties with governments of neighboring countries, including Somalia, despite the ongoing security issues caused by unstable, porous, and conflicted borders and the presence of violent extremist groups like al-Shabaab. Kenya and its neighbors are working together to mitigate the threats of terrorism and insecurity through African-led initiatives such as the African Union Mission in Somalia (AMISOM) and the nascent Eastern African Standby Brigade (EASBRIG). In November 2012, the Judicial Service Commission approved the establishment of a special division within the High Court to deal with those responsible for the post-election violence. The International Crimes Division (ICD) will deal with the ldquomiddle and lower levelrdquo perpetrators of international crimes committed in Kenya during the post-election violence period. The National Council for Administration of Justice (NCAJ) through its technical committee has endorsed the proposal to cover the 2007-2008 period and recommended that the events surrounding the 1992 and 1997 elections also be considered. The court will be composed of seven judges, will have jurisdiction over crimes such as money laundering, cyber laundering, human trafficking, piracy and transnational organized crime. Appeals will be directed to the Court of Appeal with a final appeal to the Supreme Court. Corruption in Kenya is pervasive and entrenched. Kenya is ranked amongst world39s most corrupt countries. The 2012 Ibrahim Index of African Governance ranked Kenya 25 out of 52 countries on quality of governance, a decline of two places from 2011. Transparency International Kenyarsquos Global Corruption Perception Index 2012 has Kenya ranked 139 out of 176 countries, a marginal increase from 154 of 183. Kenya still ranks second from the bottom among the five EAC countries, better only than Burundi. The Corruption Perceptions Index measures the perceived levels of public sector corruption in countries worldwide. Lack of political will, little progress in prosecuting past corruption cases, and the slow pace of reform in key sectors were cited reasons why Kenya is still ranked amongst the 35 lowest-scoring countries. In December 2003, the Kenyan government signed and ratified the UN Convention against Corruption. In 2003, the Kibaki government enacted the Anti-Corruption and Economic Crimes Act and the Public Officers Ethics Act, setting rules for transparency and accountability, and defining graft and abuse of office. The Public Officers Ethics Act requires certain public officials to declare their wealth and that of their spouses within 90 days from August 2, 2003. Subsequently, the government fired 23 judges for corruption. Nevertheless, opposition leaders castigated the Kibaki government for its lackluster pursuit of individuals suspected of corruption. In 2004, the government established the Kenya Anti-Corruption Commission (KACC), moved forward with the implementation of the Anti-Corruption and Economic Crimes Act, and launched full implementation of the Code of Ethics Act for Public Servants in 2004. The Public Procurement and Disposal Act, which established a commission to oversee all procurement matters, became law in 2005 but has been ineffective in limiting abuse by public officials. Despite the law, large public procurement programs and military procurement have been at the center of a number of corruption scandals in recent years. Enacted in 2007, the Supplies Practitioners Management Act is meant to complement the Public Procurement and Disposal Act by regulating the training, certification, and conduct of procurement officers and imposing penalties for violations. The KACC launched several investigations in 2006-2007 against senior government officials, including two government ministers however, none of the cases have been prosecuted successfully, in large part due to bottlenecks in the Attorney General39s Office and loopholes in the judicial system. Former Finance Minister Amos Kimunya stepped aside in early July 2008 in connection with the non-publicly tendered sale of a government-owned property, the Grand Regency Hotel, to a Libyan group. An investigatory commission, the Cockar Commission, reportedly exonerated Kimunya of any wrongdoing. He was appointed as Minister of Trade in January 2009, providing an example of the culture of impunity in Kenya. At the end of 2010, he became Minister of Transport. In 2009, President Kibaki irregularly reappointed the director of KACC, during whose tenure no minister-level official had ever been prosecuted, despite a number of high profile corruption scandals including Goldenberg, Anglo Leasing, Triton, and the maize scandal. After a storm of protest from Parliament, the director of KACC lost his re-appointment vote. This historic vote was the first time that the Parliament overruled the President. In 2010, the KACC Board selected PLO Lumumba as director of KACC. Lumumba took a strong stance against corruption and re-opened some of the older cases, including Anglo-Leasing. In December 2010, in Lumumbarsquos first major corruption case, the KACC arrested and charged Minister of Trade Henry Kosgey with abuse of office over the illegal importation of automobiles. The case was dismissed on a technicality and the government has said it plans to appeal. As called for in the constitution, the KACC was replaced in 2011 by the Ethics and Anti-Corruption Commission (EACC), which is very similar to the KACC. Hopes that the new body would be a more effective check on corrupt behavior than its predecessor have not been realized as yet like the KACC, the EACC has investigative power but lacks prosecutorial authority. Furthermore, it is widely believed that Parliament was uncomfortable with the pressure brought to bear by Lumumba and sought to dismiss him by disbanding the KACC. Since it was established in 2011, the EACC has been without a fully constituted board of directors and senior management team, which has hindered its ability to operate effectively. Bilateral Investment Agreements Kenya does not have a bilateral investment trade agreement with the United States. Kenya has signed bilateral investment agreements with Burundi, China, Finland, France, Germany, Iran, Italy, Libya, Netherlands, Slovakia, Switzerland, and the United Kingdom, although only those with Germany, Italy, Netherlands, and Switzerland have entered into force as of June 2012. As noted above, Kenya and its EAC partners signed a Trade and Investment Framework Agreement with the United States in July 2008 as a bloc. In 2012, the United States launched talks with EAC on a new trade and investment partnership, which includes a regional investment treaty. OPIC and Other Investment Insurance Programs Kenya is eligible for Overseas Private Investment Corporation (OPIC) programs and is a member of the Multilateral Investment Guarantee Agency (MIGA). In September 2011, OPIC approved up to US310 million in financing for the expansion of Nevada-based Ormatrsquos geothermal energy facility in Kenya, which also receives support from MIGA. This represents a substantial increase in scale compared to previous OPIC activities in Kenya: in 2008 and 2009 OPIC supported five projects in Kenya totaling US19.18 million, including two large microfinance projects targeting women. OPIC is seeking to expand its existing Kenya portfolio of US320 million to supporting mobile banking, housing, telecommunication and power. In July, 2012, OPIC announced that their Board of Directors ldquoapproved US72 million in financing to help bring affordable high-speed internet service, television programming and telephone service to growing, yet underserved middle class markets in East Africa. The OPIC direct loan will enable Wananchi Group Holdings (WGH), a Kenyan company, to extend fiber optic cable services for high-speed internet, television and voice-over internet telephonic services in Kenya. WGH will also provide pay TV programming via satellite across a broad footprint of cities and rural areas directly to Kenya, Tanzania, and Uganda, and indirectly through agents to a number of other East African countries, including Burundi, Malawi, Rwanda, Somalia, South Sudan, and Zambia. rdquo9 Note: OPIC is appointing an Africa representative to the U. S. consulate in Johannesburg to facilitate transactions throughout Sub-Saharan Africa later this year. Kenya39s population is estimated to be roughly 41 million. Of the approximately 21 million working Kenyans aged 15-64, the Kenya National Bureau of Statistics reports that 10 million are engaged in pastoral and small-scale rural agriculture. Another 8.8 million are engaged in the informal sector, leaving only 2.2 million Kenyans in the formal sector. A 2006 household survey found that 46 percent of the Kenyan population was living on less than US1/day newer data is not available, but the Kenyan government believes that the number has decreased considerably due to rising per capita income and a growing middle class, which at 10 percent of the population is now among the largest in Africa. Per capita income, per the Atlas method, is US820 in 2011. The countryrsquos population growth rate of 2.7 percent per annum coupled with high unemployment and informal employment produces on-going demand for new jobs . Kenya has an abundant supply of well-educated and skilled labor in most sectors. According to the Global Competitiveness Index Kenya ranks 100 of 144 in higher education and training and 39 of 144 in labor market efficiency. Kenya39s laws generally provide safeguards for worker rights and mechanisms to address complaints of their violation, but the Ministry of Labor and Human Resource Development lacks the resources to enforce them effectively. In October 2007, President Kibaki signed five labor reform laws that were drafted with ILO assistance under the U. S. Department of Laborrsquos Strengthening Labor Relations in East Africa (SLAREA) project to make Kenyarsquos labor laws more consistent with ILO core labor standards, AGOA compliant, and harmonious with Ugandarsquos and Tanzaniarsquos labor laws. The new laws are: the Employment Act, which defines the fundamental rights of employees and regulates employment of children the Labor Relations Act on worker rights, the establishment of unions, and employers associations the Labor Institutions Act concerning labor courts and the Ministry of Labor and Human Resource Development the Occupational Safety and Health Act and the Work Injury Benefits Act on compensation for work-related injuries and diseases. The Kenyan government formally published the amended texts of the new laws in 2008. Also in 2008, the Kenyan government created the National Labor Board to steer stakeholders to meet and propose necessary amendments to Parliament for smooth implementation of the Acts. The Board will set structures and rules as required by the Act. Kenya has signed and ratified 7 of 8 Fundamental Conventions of the ILO and 3 of 4 Priority Governance Conventions. Not ratified are the ldquoFreedom of association and Protection of the Right to Organize (C087)rdquo and ldquoEmployment Policy (C122)rdquo conventions. Under the Labor Relations Act, a minimum of seven workers may initially apply to register a union, but the nascent union must have a minimum of 50 members to be registered. A union must also show a signed membership request from 50 percent of the workers in a workplace to force an employer to recognize the union. There are 42 registered unions representing over 500,000 workers, approximately one quarter of the country39s formal sector work force. All but six, including the 240,000 member Kenya National Union of Teachers (KNUT), the University39s Academic Staff Union (UASU), and the Union of Kenyan Civil Servants (UKCS), are affiliated with the Central Organization of Trade Unions (COTU), which has about 260,000 members. Union membership is voluntary and organized by craft rather than industry. Kenyarsquos constitution protects the right to fair remuneration, reasonable working conditions, trade union activities, and the right to strike in the Bill of Rights as fundamental freedoms. Consequently, workers, especially in the public sector, now enjoy greater latitude to express their grievances. While the law permits strikes, unions must notify the government 21-28 days before calling a strike. During this period, the Minister of Labor and Human Resource Development may mediate the dispute, nominate an arbitrator, or refer the matter to the new Employment Relations Court, which replaced the Industrial Court. A strike is illegal while mediation, fact-finding, arbitration, or other legal proceedings are in progress. The Labor Institutions Act of 2007 expanded the former Industrial Court and gave it the same powers as a High Court to enforce its rulings with fines or prison sentences the new Employment Relations Court is largely the same as the Industrial Court but may also hear individual employment complaints, which previously were handled by the Ministry of Labor. The court has penalized employers for discriminating against employees because of their union activities, usually by requiring the payment of lost wages. Court-ordered reinstatement is not a common remedy because of the difficulty in implementation. On August 2011, Kenya re-constituted the Industrial Court elevating it to the status of the High Court to hear and determine disputes relating to employment and labor relations from the perceived subordinated Court status in line with provisions of the new Constitution of 2010 and as part of the on-going judicial reforms in Kenya. This is an attempt to create industrial peace and speedy resolution of increased employment disputes arising from the increased labor freedoms brought by the new Constitution as witnessed by the recent wave of strikes. The Industrial Court has now been integrated with the traditional judiciary. It remains a specialized Court, but removed from the Ministry of Labor to the Judiciary. The new Industrial Court Act 2011 entrenches the Industrial Court into the relatively well funded and independent Judicial Service Commission system from the chronically underfunded Ministry of Labor. To address congestion in the Industrial courts, new branches are being rolled up in the two other Kenyan cities namely Mombasa and Kisumu. The new Industrial Court has both the same status as High Court and appellate jurisdiction to hear and determine appeals from: decisions of the Registrar of Trade Unions and Magistrate courts, local tribunal or commission. Recognition of Alternative Dispute Resolution system to supplement the court is a key feature of the new Act. The Court has appellate jurisdiction to hear and determine appeals from: decisions of the Registrar of Trade Unions and Magistrate courts, local tribunal or commission. The Chief justice has also designated all courts in the 47 Counties presided over by Magistrates as special courts to hear and determine Employment and Labor relations cases. This initiative is expected to ease the backlog in the Industrial court. Kenya has relatively harmonious labor relations. The Industrial Court adjudicated 226 cases in 2008, out of which it gave 192 rulings, compared to 295 cases and 147 rulings in 2007. However, the number of cases subsequently rose to 851 in 2009 and 1,484 in 2010. 361 Collective Bargaining Agreements were negotiated and registered by the Industrial Court in 2011. Late 2011 saw a notable uptick in labor unrest and at least ten unions issued strike notices in the last six months of the year alone. A number of different unions, from postal workers to physicians, exercised their right to strike. There were several large-scale strikes in 2012 involving public sector workers, primarily teachers, health sector workers, and public transportation drivers. Violence was minimal and all strikes were resolved through negotiations. Labor law mandates the total hours worked in any two-week period should not exceed 120 hours (144 hours for night workers). Negotiations between unions and management establish wages and conditions of employment. There are twelve separate minimum wage scales, varying by location, age, and skill level. Regulation of wages is part of the Labor Institutions Act, and the government establishes basic minimum wages by occupation and location, setting a minimum for monthly, daily, and hourly work in each category. In 2011, the Kenyan government revised the minimum wage upwards by 12.5 percent. In many industries, workers are paid the legal minimum wage and thus benefited from this increase however, the wage increase was outpaced by increases in the cost of living. As of January 2012, the lowest legal urban minimum wage was Ksh 7,586 (US90) per month, and the lowest agricultural minimum wage for unskilled employees was Ksh 3,765 (US45) per month, excluding housing allowance. The Productivity Center of Kenya, a tripartite institution including the Ministry of Labor, the Federation of Kenyan Employers, and COTU, is tasked to set wage guidelines for various sectors based on productivity, inflation, and cost of living indices, but the center lacks strong industry support and employers often do not follow its recommendations. Most minimum wage workers must rely on second jobs, subsistence farming, other informal work, or the extended family for additional support. Furthermore, a large portion of employees in Kenya rely primarily on the informal sector for work and thus are not protected by minimum wage laws. Workers covered by a collective bargaining agreement generally receive a better wage and benefit package than those not covered: Ksh 14,621 per month on average (US173), plus a housing and transport allowance, which may account for 20 to 40 percent of a Kenyan workerrsquos compensation package. Kenyan law establishes detailed environmental, health and safety standards, but these tend not to be strictly enforced. The Directorate of Occupational Health and Safety Services (DOHSS), a department under the Ministry of Labor and Human Resource Development, has the mandate to enforce the Occupational Safety and Health Act and its subsidiary rules. DOHSS has the authority to inspect factories and work sites, except in the EPZs, but operates with less than half of the 168 inspectors needed to adequately cover the entire country. DOHSS developed a program to help factories establish Health and Safety Committees and train them to conduct safety audits and submit compliance reports to DOHSS. The Directorate also maintains a register of approved and certified safety and health advisers whom employers may enlist to conduct safety audits in the factories and other places of work. The Directorate should carry out these audits at least once a year and forward a copy of the audit report to the DOHSS within 30 days. However, according to the government, fewer than half of the largest factories had instituted Health and Safety Committees. Visas and Work Permits Work permits are required for all foreign nationals who wish to work in Kenya. An applicant for an entry permit must describe the type work they will perform and will be limited to that specific activity. Although there is no official time limit, a visitor39s pass or a visa is usually valid for three months and the Immigration Department must grant applicable extensions upon proper application. Applicants may apply for work permits in any major city in Kenya, but all applications go to Nairobi for processing. Before hiring expatriate workers, businesses are required to demonstrate by an exhaustive local recruitment campaign that suitably qualified Kenyan citizens are unavailable. Foreign firms must also sign an agreement with the government defining training arrangements intended to phase out expatriates. The government is currently working to develop a skills inventory, which should lower the burden on firms hiring expatriates by replacing the labor-market testing procedure, at least for high-skill positions, with a pre-determined list of skills with shortages in the Kenya. As of January 2012, however, the Ministry had conducted a pilot study but had not commissioned a full employment survey. Once implemented, this inventory will allow approved employers to freely hire foreign workers with the listed skills, subject only to verification of the credentials and character of the individuals proposed for employment by the Immigration Department. Despite this measure, high unemployment levels have led the government to make it increasingly difficult for expatriates to renew or obtain work permits, and Immigration has increased the price of a work permit to up to Ksh200, 000 (US2,370). The Immigration Department has occasionally cancelled work permits before the expiration date without giving reasons. According to the law, the immigration officer issuing entry permits may also require a bond of not less than Ksh 100,000 (US1,180) for each permit, to be deposited with the Immigration Department. Foreign Direct Investment Statistics Through the 198039s and 199039s, the deterioration in economic performance, together with rising problems of poor infrastructure, corruption, high cost of borrowing, crime and insecurity, and lack of investor confidence in reforms generated a long period of low FDI inflows. The GoK has made the attraction of FDI a clear policy priority and established KenInvest as a semi-autonomous agency in 2004. Net inflows increased more than fourteen-fold between 2006 and 2007, from US51 million (0.2 of GDP) in 2006 to a record US729 million (2.7) in 2007, according to the World Bankrsquos World Development Indicators due to large privatizations in telecommunications and investment in the railways. FDI inflows dropped off sharply in 2008, coming in at only US96 million (0.3), and then increased to US116 million (0.4) in 2009, US178 million (0.6) in 2010, and US335 million (1.0) in 2011. These figures compare poorly to neighboring Tanzania and Uganda, which have both posted higher net FDI inflows in dollar terms than Kenya each year since 1993, with the exception of 2007, despite their smaller economies. In 2011, Tanzania reported US1.095 billion in net FDI inflows and Uganda reported US792 million. UNCTAD estimates Kenyarsquos 2011 FDI stock at approximately US2.6 billion. As of 2008, the market value of U. S. investment in Kenya stood at approximately US183 million, primarily concentrated in commerce, light manufacturing, and tourism. Kenya, which has traditionally been seen as a laggard in attracting FDI, is now ranked among top FDI destinations in Africa, thanks to ongoing investments in infrastructure and judicial reforms. FDI Intelligencersquos FDI Report 2012 ranked Kenya 10 th in infrastructure systems in Africa and 8 th in human resource capacity attributes in Africa. The report shows that Kenya attracted 55 projects in 2011 compared with South Africarsquos 154 and Moroccorsquos 70. The highest number of projects were in coal, natural gas, and oil, real estate, hotels and tourism, software, IT services and communications sub-sectors. The number of projects coming to Kenya rose 77 percent from 2010, pushing it ahead of Nigeria, and Egypt. However, the other East African countries did not feature in the ranking. Inflows into the country were boosted by increased fundraising by oil since and mineral prospecting companies seeking a share of Kenyarsquos rising mineral resource profile. In 2012, Kenya struck oil but its commercial viability is yet to be determined. FDI from traditional sources such as Europe has been complemented by that from emerging markets. Investors from China (roads, manufacturing, and agriculture), India (ICTs such as Airtel and Yu), and the Middle East (hotel and property development such as Fairmont) are starting to make their presence felt. Large government infrastructure projects are likely to increase FDI in the coming years. The government is presented a PPP bill to Parliament with the intention of attracting US40 billion in infrastructure finance. With an industrial base that is relatively advanced compared to the region, Kenya is also becoming an important outward investor in manufacturing, finance and service activities to EAC countries and the wider region. Kenyan companies with a significant regional presence include Tourism Promotion Services Eastern Africa (operating as Serena Hotels), Kenya Commercial Bank, Diamond Trust Bank and Equity Bank, East African Breweries, the Uchumi and Nakumatt supermarket chains, and Nation Media (radio broadcasting and television). Outward FDI reached US46.0 million in 2009 before decreasing to US17.7 million in 2010. Meanwhile total outward stock stands at US306 million. In 2012, foreign interest in the energy sector grew. Kenyarsquos energy sector has received significant attention with major breakthroughs in oil and geothermal offsetting slower-than-hoped-for progress in wind and solar energy. Energy sector expansionmdashincluding oil, gas, coal, geothermal, wind, solar, biomass, and even nuclearmdashfigures prominently in the countryrsquos Vision 2030 development strategy. Tullowrsquos discovery of oil in early 2012 prompted significant excitement among government officials and the private sector, as well as among development partners and organizations interested in supporting the governmentrsquos energy sector policy reform process. Tullow has not yet determined whether its discovery is commercially viable, although most indications thus far have been positive. More recently, U. S.-based Apache discovered non-commercial quantities of natural gas in its offshore exploration block near Malindi, Kenya. Six U. S. companies now hold stakes in a total of nine Kenyan oil exploration blocks. Poor data collection in Kenya leads to underestimating actual inflows of FDI. There is no clear mandate by any agency to collect data on FDI. The CBK, the Kenya Investment Authority, and the Kenya National Bureau of Statistics all collect only partial information on either balance of payments inflows or investment projects. The government does not publish data on the value of foreign direct investment (position/stock or annual investment capital flows) by country of origin or by industry sector destination. Neither is data available on Kenyarsquos investment abroad. If implementation of the new constitution and other reforms moves forward smoothly, this growing domestic investment might be bolstered by a significant increase in FDI inflows. 2 Source: Kenya Tourism Board