Ruto says govt to look into new Companies Act


By DPPS

KBC Radio_KICD Timetable

The Government will look into the law requiring foreign investors to partner with locals while setting business in the country to ensure it is not an impediment to investments, Deputy President William Ruto has said.

Mr. Ruto said the law in the New Companies Act should be geared towards serving the interest of both foreign and the local investors.

“We will look for a way of correcting the situation so as to create a favourable climate for investments,” said Mr. Ruto.

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He added: “We will ask the legislature to make some insertions on the regulations so as to create balance between price, quality and value.”

The law requires that foreign firms should enter into a mandatory joint ventures partnerships (30 per cent share) with locals in order to invest in Kenya.

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The Deputy President was responding to concerns raised by German Ambassador to Kenya Jutta Frasch who paid him a courtesy call at his Karen office on Wednesday.

Ms. Frasch noted that German business people had raised concerns that the law was making it difficult for them to invest in the country.

“Germany investors have a lot of interest to invest in this country but the regulations that they should enter a mandatory joint ventures, up to 30 percent shares with the locals is making it less favourable for them,” said Ms. Frasch.

The Deputy President assured that efforts will be made to ensure the law was favourable to foreigners and locals so as not to slow down inflow of international investments.

Mr. Ruto said Kenya was open to investments and that it was doing its best to ease the cost of doing business in the country.

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“We are solving the impediments to make Kenya the best place to do business,” said Mr. Ruto.

He said the Government remains committed to improving the country’s economy by creating an enabling environment for investments.

“You are aware that our country went up 28 places last year globally among the most improved countries on ease of doing business according to the World Bank’s Doing Business Report, 2016,” he said.

“We are targeting to jump another 20 by next year by putting in place more favourable environment for investments,” he added.

Ms. Frasch said Germany was ready to partner with Kenya in the development of technical education.

“I want to assure you that Germany has a lot to offer to the people of Kenya on vocational training,” said Ms. Frasch.

Mr. Ruto said the Government is committed to supporting vocational training institutions to enhance skills required for the development of the country.

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“We are concerned about development of technology as it is the sure way of attaining the country’s development needs,” he said.

“We established 60 technical institutes last year and we have this financial year set aside Sh 3.5billion to initiate another 70 technical institutes across the country to get people to turn the wheels of the economy,” added Mr. Ruto.

Ms. Frasch said Germany would learn from Kenya on how it has managed to host large number of Refugees from the neighboring Somalia.

“Our country is facing the challenge of hosting refugees from Syria, Pakistan among other countries and we want to learn from your country on how you have managed to cope up with the same problem,” said Ms. Frasch.

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