{"id":12706,"date":"2020-08-12T18:40:23","date_gmt":"2020-08-12T18:40:23","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=12706"},"modified":"2020-08-12T18:40:23","modified_gmt":"2020-08-12T18:40:23","slug":"state-makes-it-compulsory-for-kenyans-to-own-part-of-foreign-ict-companies","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/state-makes-it-compulsory-for-kenyans-to-own-part-of-foreign-ict-companies","title":{"rendered":"State makes it compulsory for Kenyans to own part of foreign ICT companies"},"content":{"rendered":"

Author:\u00a0Fredrick Obura<\/strong>
\nAfricaPress-Kenya:<\/strong>\u00a0 International ICT companies seeking to set up shop in Kenya will have to conform to a new set of rules set out by the government.<\/p>\n

A review of the national ICT policy now makes it a must for such companies to let go of 30 per cent of company shares to Kenyans.<\/p>\n

In a recent Gazette notice, the Ministry of Information and Communication Technology says the new requirement is part of a wider plan to encourage Kenyans to participate in the ICT and Science and Technology sector through equity participation.<\/p>\n

\u201cIt is the policy that only companies with at least 30 per cent substantive Kenyan ownership, either corporate or individual will be licensed to provide ICT services. For purposes of this rule, companies without majority Kenyan ownership will not be considered Kenyan, and may thus not be calculated as part of the 30 per cent Kenyan ownership calculus,\u201d says the ministry in a gazette notice.<\/p>\n

\u201cLicensees will have three years to meet the local equity ownership threshold they may apply to the Cabinet Secretary for a one-year extension with appropriate acceptable justification.\u201d<\/p>\n

The National ICT policy was last reviewed in 2006. Since then, the sector has experienced rapid technological advancement, changes to the legal and administrative framework, and many emerging issues.<\/p>\n

The latter include increased IT-enabled services, increased demand on bandwidth and for Quality of Service (QoS), challenges of cyber-security, integration projects, and harmonization of ICT policies regionally and internationally.<\/p>\n

Jerome Ochieng, Principal Secretary ICT says the policy is a product of an all-inclusive, participatory and consultative process. \u201cIt is guided by the following principles; putting ICT at the centre of the national economic agenda, improving access to ICT especially broadband, efficient public service delivery and maintaining an open government, putting the private sector first and Leveraging on ICT to promote Sustainable Development Goals.\u201d<\/p>\n