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Our Vision
To be a world class agency in marketing Kenya as the first
choice investment destination

Our Mission
To provide exceptional services to attract, facilitate and retain
investments in Kenya

Our Core Values:

Investor first:
We put investors first and strive to continuously meet and exceed their demands.

Staff are our key asset:

We endeavor to have highly trained, committed and motivated employees.

Professionalism and integrity:

We subscribe to the highest level of professionalism and integrity in a transparent and
accountable manner.
Teamwork and participatory management:
We cherish teamwork with openness and trust.

Linkages and Networking:

We seek to involve all stakeholders towards fulfillment of our mission.
ANNUAL REPORT 2006/2007 1

Notices of the 2006/2007 Board Meetings 2

Statement by Former Minister of Ministry of Trade Industry 3

Board of directors 6-7

Chairman’s statement 8

Pictorial 9

Managing Director’s statement 12 - 13

Corporate governance (Governance by the Board) 14 - 15

• Investment Committee

• Human Resource and Administration Committee

• Finance Committee

• Audit Committee Contents

Attendance Schedule of Board Members 16

Corporate information 17 - 18

Composition of KenInvest 19-21

• Corporate Affairs

• Investment Promotion

• Research and Policy

• Investor Services

Statement of directors’ responsibilities 23

Independent auditors’ report 24 - 26

Annextures 27 – 35

Notices of the 2006/2007 Board Meetings

Date Month Year Location

Board Room on 8th Floor at National Bank Building,

3 January 2006
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

18 May 2006
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

16 June 2006
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

20 July 2006
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

26 August 2006
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

25 January 2007
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

5 March 2007
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

31 May 2007
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

26 July 2007
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

23 August 2007
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

24 August 2007
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

25 October 2007
Harambee Avenue

Board Room on 8th Floor at National Bank Building,

12 November 2007
Harambee Avenue
ANNUAL REPORT 2006/2007 3

Statement by former Minister of Ministry of

Trade & Industry
Kenya has had a long history of economic leadership in East Africa
as one of the largest and most advanced economies in the region.
Enhancing Kenya’s competitiveness in attracting investments
and ease the investment process, the Investment Promotion Act
2004, Cap 485 of 1986 was passed. This transformed Investment
Promotion Centre (IPC) to Kenya Investment Authority (KIA) with
an expanded mandate in executing its role of investment promotion,
investment facilitation and policy advocacy. This was one of the
priorities envisioned in the Economic Recovery Strategy for Wealth
and Employment Creation (ERS) (2003-2007).

Kenya was recently recognized by the World Bank as one of the top
five countries that have implemented business reforms that support
more private investment throughout Africa. Kenya launched an
ambitious licensing reform program. The program has eliminated
110 business licenses and simplified eight others.

The Government targets to eliminate or simplify more than 900

more of the country’s 1,300 licenses. The changes have streamlined
business start-up and cut the time and cost of getting building
permits and licenses. This effort has provided confidence to
potential investors in Kenya.

The Vision 2030 was developed by the government to take over

after ERS scheduled to end in 2007 and spur rapid and sustainable
growth and development up to the year 2030. Six priority sectors
for promotion were identified. They are Manufacturing, Agriculture
and Agro processing, Tourism, Business process outsourcing,
Finance, Wholesale and retail. The Authority will now transit from
its generalized approach to promotion and adopt a more tailor-
made approach.

The Authority is in the process of setting up a One Stop Shop. It

will be a place where an investor deals with one single entity to
obtain all the necessary documentation in one streamlined and
coordinated process. The One Stop Shop will enable the institution
to execute its mandate more effectively and efficiently, and in line
with best practices around the world. In this regard the Authority
is under going a restructuring exercise for better service delivery
to the investors. This report will highlight the process, trials and
success of the Authority.

Hon. Mukhisa Kituyi

Former Minister of Trade and Industry
30th June 2008
ANNUAL REPORT 2006/2007 5

Nairobi is the first choice destination when
looking for investment opportunities in East
Nairobi City Africa

Board of

Prof. Henry M. Bwisa Wanjuhi Ndirangu

Chairman, Board of Directors

Mr. Matanda Wabuyele

Mr. Allan Ngugi
Chief Executive Export Promotion
Member Council (EPC)

Mr. John O.B. Akara

Mr. Michael Ndeda
Ag C.E.O Export Processing
Member (Private Sector) Zones Authority (EPZA

Amb. Green Josiah Mrs. Betty Khasakala Mwenesi

Member (Private Sector) Member (Private Sector)
ANNUAL REPORT 2006/2007 7

Lenny Kivuti
Mr. Onesiphorus P. K.Ngʼangʼa
Alternate Member/
PS, Ministry of Local Government

Mr. Ephantus Murage

Mrs. E.A.M. Khaoya Mundia
Alternate Member/PS, Ministry of Alternate Member/
Trade and Industry PS, Ministry of Lands

Mr. Mwambia Wanyambura Mr. Wellington A. Lubira

Alternate Member/ Alternate Member/
PS, Ministry of Finance PS, Ministry of Agriculture

Ms. Susan Kikwai

Mr. Stephen Wainaina Managing Director and
Secretary to the Board
Alternate Member/ PS, Ministry of
Planning and National Development

Mr. William K. Mahinda Mr. Albert Gumo

C.E.O Export Processing
Alternate Member/ PS, Secretary to
Zones Authority (EPZA)
the Cabinet & Head of Public Service,
Office of the President *Directorʼs photo not available



It gives me great pleasure to present to you the 2006/2007 Annual

Report. KenInvest strives on being a world class (IPA) in attracting and
facilitating investments and providing input towards improving the
country’s economic performance.

Investment Environment

In the last financial year the recorded economic growth of 7% was

boosted due to past and current investments in all sectors
Manufacturing, Tourism, Agriculture, Transport and
Telecommunications were the main growth sectors in the economy.

Financial Results

KenInvest received a clean bill of health in this year’s audit report by

KENAO. The organization received certification with no queries.

Corporate Governance

The Board continued to ensure that proper standards of corporate

governance were maintained and continued to have oversight over the
management of the company, not only through the board meetings
but also through the various board committees. In this regard, the
Board met regularly and deliberated on a broad range of issues.
These included strategic plan, logo, human resources and investment
promotion activities.

Future Outlook

A key part in our growth strategy is through expansion of our services

to other regions in the country. KenInvest’s has now operational
regional offices in Kisumu,Mombasa in addition to the Eldoret office.

Finally, I would like to extend my sincere thanks to my colleagues on

the board for their excellent performance and unwavering support
and to the entire staff of KenInvest for a job well done in the year

Professor Henry Bwisa

ANNUAL REPORT 2006/2007 9


13TH - 15TH MARCH 2006


(23RD, 24TH & 25TH MAY 2007)

The Masai Mara’s annual Wild Beasts migration
was voted one of the wonders of the world.
Tourism is one of the lucrative investment
opportunities available in Kenya.
ANNUAL REPORT 2006/2007 11


This is the third year of the implementation of the Economic Recovery

Strategy (ERS) for Wealth and Employment Creation, 2003-2007. The
strategy identifies key policy actions necessary to spur the recovery
of the economy and is based on four pillars. First the government
recognizes that rapid economic growth will be required over the
next four years but in an environment of macro- eco¬nomic stability.
The second pillar is strengthening of institutions of governance. It
underscores the centrality of the rule of law as opposed to the rule of
man in the creation of good governance. Rehabilitation and expansion
of physical infrastructure is the third pillar. The final pillar is investment
in the human capital of the poor.

The macro economic objectives are:

• Creation of 500,000 jobs per year. Over the period 2003-2007, a

total of 2,636,130 jobs are expected to be created out of which
12 per cent i.e. 316,335 will be from the formal sector and the
balance of 88 per centfrom small business enterprises.
• Growth of the Economy at 7%
• Increasing official foreign reserves from US$1.1 billion or 2.8
months of import cover in 2002 to US$ 1.7 billion or 3.5 months
of import cover in 2007.
• Reducing poverty level by at least 5 percentage points from the
current 56.8 per cent
• Containing the average annual inflation rate to below 5%
• Containing the current account deficit in the balance of
pay¬ments to an average of 6.2% of GDP.
• Increasing domestic savings so as to enable higher levels of
investments for sustainable development.

This report falls within this period (3rd year of ERS) covering the year
1st July 2006 to 30th June 2007. It provides an insight to the KenInvest’s
main activities and performances including corporate governance. We
worked within the frame work of the ERS and as our main document
of reference and as a result, this report will cover investment enquiries,
investment approvals, investment promotion, and investment policy.
In 2006/2007, KenInvest identified with the first and fouth pillars of
ERS and developed the following objectives:-
ANNUAL REPORT 2006/2007 13

1. To attract, facilitate and enhance retention of appropriate

investments in Kenya.
2. To carry out Research Policy advocacy and Planning
3. Develop an investor targeting strategy for promoting
Kenya as a first choice investment destination.
4. Provide aftercare services to existing investment in the
5. Undertake activities that build, manage and project an
excellent image and corporate identity.
6. Strengthen and review internal control systems that
ensure effective utilization of resources and promote
good corporate governance annually.

Despite the challenge of managing an organisation in transition

from Investment Promotion Centre (IPC) to Kenya Investment The report offers
Authority, we managed to keep our heads above water and
did very well for the year 2006/2007. The climax was the audit insights in KenInvest’s
certification with no queries from Kenya National Audit Office
(KENAO) and the conception of the Ones Stop Shop.
main activities
and performances
It is our belief that we have a well planned and prepared
strategy to handle the next year. This year marks the beginning
including corporate
of KenInvest and the end of Investment Promotion Centre. We governance. We
hope that you will find this report interesting to read.
worked within the
Karibu. frame work of the
ERS and as our main
document of reference
Ms. Susan Kikwai and as a result, this
report will cover
investment enquiries,
investment approvals,
investment promotion,
and investment policy.

Kenya Investment Authority (KenInvest) was established by an Act
of Parliament, The Investment Promotion Act, 2004 No. 6 of 2004.
It became operational on 3rd October 2005 after legal notice in the
Kenya gazette Supplement No. 87. The Act in Part IV section 14 replaces
the Investment Promotion Centre but maintained the function of
promoting and facilitating investment in Kenya. Section 31 repeals the
Investment Promotion Centre Act.

This Act automatically covers licensing in the categories listed in

Annexure 2 of this report. It also sets out the requirements/conditions
necessary to any proposed investment and to which the holder of the
Investment Certificate would, on applications, be legally entitled. Any
conditions set out after issuance of investment certificate must be
fulfilled within twelve months and upon payment of applicable fee,
if any.

The holder of an Investment Certificate is entitled to the following

entry permits under the
immigration Act:-
Three class A entry permits for management or technical staff;
Three classes H, I or J entry permits for owners, shareholders or
partners. These include
dependant’s pass and re-entry permits.

The Act in section 16(i) gives the Board of Directors the overall
responsibility of the Authority with the Chairman being a Presidential
appointee for a period of three years. Other members are
representatives of the Government in their various capacities and the
Managing Director who is the Secretary to the Board.

In its governance, the Board has established four Committees as per

section 4(1), of the Third Schedule of the Act, consisting of:-
1 Investments Committee
2 Finance Committee
3 Audit Committee
4 Human Resource and Administration Committee

The Full Board however is required to meet at least four times in every
financial year and not more than four months shall elapse between
one meeting and the next meeting to discuss the overall performance
of KenInvest. All full board meetings are convened by the Secretary to
the Board upon instructions from the Chairman or upon the requisition
of at least five members of the Board. All decisions are passed by a
majority of present members voting with the Chairperson having
the decisive vote in the event of a tie. Board Members are required
to enter into a Performance Contract every financial year with the
government to evaluate its Performance against set targets. Below is
the attendance matrix for the Board meetings of this financial year.
ANNUAL REPORT 2006/2007 15

Investments Committee

This Committee has the overall mandate to ensure that all

investment issues and the core function of KenInvest are
maintained at all times. This includes the policy establishment
of activities, for example the One Stop Shop to facilitate smooth
entry to investors and after-care services. The Committees
important task is to ensure the relevance of the strategic plan
and sustained achievements of the set goals.

Human Resource and Administration Committee

This Committee has the most difficult task of ensuring that
KenInvest maintains and attracts high caliber of human
resources. The Committee handles all rationale of recruitment,
organizations practices, attitudes, and staff motivation. The new
organizational structure and recruitment of the new five General
Mangers is a step by the Committee to achieving international
standards for KenInvest. The Committee has worked tirelessly
for the past two years to ensure that the organization employee
and retain only high standard and professional staff.

Finance Committee This Act

This Committee has the overall mandate to ensure that the automatically
budget is justified and adhered to, and that all expenditures are
accounted for. They also have the mandate that all quarterly
covers licensing
reports are presented in a timely fashion to the Board prior to in the categories
the same being submitted to the Parent Ministry. All financial
policies are discussed in this Committee. listed in Annexure
2 of this report. It
Audit Committee also sets out the
The Audit Committee has the duty to ensure that audit queries requirements/
and issues are resolved and communicated to KENAO within the
stipulated period. The resent achievement of this Committee conditions
was the clean bill of health given to KenInvest by KENAO after a necessary to
past history of bad performances.
any proposed
investment and to
which the holder
of the Investment
Certificate would,
on applications,
be legally entitled.

of Board Board Members 2006
Members Dates 03/01/06 18/05/06 16/06/06 20/7/06 26/10/06 09/04/07 25/10/07

Prof. H. M. Bwisa √ √ √
2006-2007 Amb. Green Josiah √ √ √ √ √
Mr. Allan Ngugi √ √
Mrs Betty A. Khasakhala-Mwenesi √ √ √
Mr. Michael Ndeda √ √ √ √ √
Mr. Matanda Wabuyele √ √ √ √
Mr. Albert Gumo
Mrs. E.A.M. Khaoya √ √ √
Mr.Mwambia Wanyambura √ √ √ √
Mr. Stephen Wainaina √ √ √
Mr. William Karari
Mr.Wellington Lubira √ √ √
Mr.Onesiphorus P. K. Ngʼangʼa √ √ √ √ √
Mr. E. M. Murage √ √

Board Members 2007

Dates 25/1/07 05/03/07 31/5/07 26/7/07 08/07/07 23/08/07 24/8/07 09/04/07 25/10/07 12/11/07

Prof. H. M. Bwisa √ √ √ √ √ √ √ √
Amb. Green Josiah √ √ √ √ √ √ √ √ √
Mr. Allan Ngugi √ √ √ √ √
Mrs Betty A. Khasakhala-Mwenesi √ √ √ √ √ √ √ √ √
Mr. Michael Ndeda √ √ √ √ √ √
Mr. Matanda Wabuyele √ √ √ √ √
Mr.J.B.O.Akara √ √
Mrs. E.A.M. Khaoya √ √ √ √ √ √
Mr.Mwambia Wanyambura √ √
Mr. Stephen Wainaina √ √ √ √
Mr. William Karari
Mr.Wellington Lubira √ √ √ √
Mr.Onesiphorus P. K. Ngʼangʼa √ √ √ √ √ √ √
Mr. Lenny Kivuti √ √
Mr.Wanjohi Ndirangu √ √ √
Mr. S.M. Indimuli √ √ √
Ms.Theodora K. Gichana
Ms.Juliana Yiapan √
Mr.Peter Bwombuna
Mr. A.O.Gumo √
Mr.Julius O.Biginga
Mr.J.K.Mathenge √ √ √ √
Ms.Ann Mburu √ √
Mr. Kiburia O.F √ √
Ms. Florence Wahome √
ANNUAL REPORT 2006/2007 17

Kenya Investment Authority was established by an Act of Parliament. It
is charged with the responsibility of promoting and facilitating inward
investment in Kenya by issuing Investment Certificates, assisting
in obtaining licenses and work permits among other functions. In
addition, KenInvest contributes to improving Kenya’s investment
climate by analyzing and reviewing existing investment related
policies, and advocating for continuous improvement of the same.
KenInvest in reinventing itself, started by identifying with an acronym
that has a punch. KenInvest seeks to identify itself as a world-class
investment promotion agency in the following ways:-


“To be a world class agency in marketing Kenya as the first choice

investment destination”


“To provide exceptional services to attract, facilitate and retain

investments in Kenya”

As set out in the Performance Contract for the year 2006/2007,

KenInvest processed and facilitated 90 projects, with a potential capital
outlay of KShs. 92 billion, which surpassed our target. These projects
translated to direct employment of ten thousand two hundred and
sixty five (10,265) Kenyans In addition, KenInvest has facilitated close
to 10 major market entrants including Africa Clean Energy Windflow
Ltd, Intex Construction Ltd, Broadband Telecom (K), Ltd Five Star
Industries Ltd, Gold Lida Ltd, Kenpor Ltd, General Electric, Osho
Grain Millers Ltd, and Old Mutual Life Assurance Co. to name a few
in this financial year. Table 1 tries to provide an overview analysis of
investments (both domestic and International) processed by KenInvest
with an insight to cash inflow.
TABLE 1: Investment Inflows Processed by KenInvest



Domestic International (KShs Billion) (KShs Billion)

2006 70 26 96 80.4 9 89.4

2007 57 10 67 10.8 7.18 17.98

Source: Investors Services Department

The above table depicts a decrease in numbers of inflow of investments;

something KenInvest is addressing with the inception of the new Act.

Still on investment inflows, below is Chart 1, showing the trend of

investment from 2002 to date 2007.

Chart 1: Investment Capital 2002-2007

2002 2003 2004 2005 2006 2007 (Jan-June)

Source: Investors Services Department

KenInvest as a member of World Association of Investment Promotion Agencies (WAIPA) does business with other
countries. Below is Table 2, showing the countries and number of projects undertaken sector by sector between 2006
and 2007.

TABLE 2: Major country origins and main sectors

Year Number of Major Source Countries Main Sectors

2006 70 UK=22%,India=13%,China=12%, Service, Manufacturing,
Germany=10%,SA=8%,USA=7%, tourism, Agriculture
Jan- Sept, 57 UK=20%,China=15%,Canada=12%, Service, Manufacturing,
(2007) India=10%, Italy=8%,Pakistan=6%, Tourism

Source: Investors Services Department

Tourism took the cake in this financial year as it also contributed to

the raise in Gross Domestic Product (GDP) within this financial year.
Services are a common sector that contributes to growth and improved
GDP especially in the telecommunication and finance sectors.
However, in relation to International investments, telecommunication
contributed more in the services sector.

It is common Knowledge that information Communication technology

(ICT) plays an important role in investor’s confidence. As a result,
KenInvest has been in the past challenged for lack thereof in this
area. As a result, KenInvest in this financial year has successfully
networked the entire office to enhance efficient communication and
workflow. The network is expected to grow therefore it is scalable to
accommodate more. A new faster and efficient internet connectivity
solution using Asynchronous Digital Service Line (ADSL) technology
has been deployed to replace the dial-up solution in place before. The
head office is in the process of upgrading the current wireless leased
line from 128 kbps to 256 kbps to accommodate the growing demand
for more internet bandwidth. KenInvest will in the next financial
year develop an ICT policy to encourage more usage of ICT in the
ANNUAL REPORT 2006/2007 19

of Kenya

The organization is comprised four departments namely:-

1. Corporate Affairs
2. Investment Promotions
3. Research and Policy
4. Investor Services

Corporate Affairs
This department essentially handles the functions of a Finance and
Administration and mostly the outlook of the organization and also
ensures that KenInvest operates within the legal framewor of Kenya.
This department facilitates membership to institutions with similar
objectives such as the World Association of Investment Promotion
Agencies WAIPA and other Investment Promotion Agencies.

Currently, the Authority is undergoing a restructuring programme

which is expected to be complete by the end of this financial year
as the internal recruitment has been completed KenInvest now has
a Managing Director since September 2006. General Managers have
been interviewed, but have not come on board due to shortage of
funds. Meanwhile, we continue to use volunteers and temporary staff
to augment the few technical staff.

Investment Promotion (Marketing)

In 2006-2007, KenInvest launched massive campaigns to attract
investors into the country. As a result, there was a marked improvement
in enquiries vide email and telephones. An average of 100 enquiries
were received monthly. An average of two incoming missions per
month to Kenya from Europe, Asia and the Middle East. A number
of African countries particularly South Africa and the East African
Communities partner states, came to Kenya.

This year, KenInvest made use of the Kenyan Embassies and

Consulates abroad as key avenues for investment promotion. Notable
correspondences came in from Egypt, China, Germany, South Africa
and the UK. In return, KenInvest used these missions as selling points
for the country. Materials sent to each embassy included the Kenya
and EAC Investment Guides.

KenInvest staff forged a working relationship with the foreign missions

accredited to Kenya principally that of South Africa, Germany, France
and the UN and in particular UNDP which provided promotional/
financial support. The Chinese Embassy has over the last two years

also offered training familiarisation tours for over half of the senior
staff of the Authority.

Research and Policy

The department played a big role in drafting the Investment Act 2004
that enabled the operationalisation of KenInvest which has greatly
improved the investment climate in Kenya as evidenced by the number
of enquiries and project proposals to KenInvest. The department
through the office of the Attorney General drafted the Investment
Regulations which were enacted under the ‘Investment Promotion
(Investment Registration and Certificates) Regulations, 2005’ on 13th
January, 2006 through Kenya Gazette Supplement No.1, Legal Notice
No.1 of 2005.

As a Member of Growing Sustainable Business (GSB) under UNDP,

KenInvest was involved in facilitating business-led enterprise solutions
to poverty in advancement of the Millennium Development Goals
(MDG). These enterprise solutions accelerate and sustain access by the
poor to needed goods and services; and/or employment and livelihoods
opportunities. In this year, the organization has participated in ground
breaking research and publications. KenInvest worked with the
UNCTAD to organize and prepare the Investment Policy Review (IPR)
for Kenya that resulted in its publication. When it comes to ‘Mineral’s
Potential towards Wealth Creation and Employment’, KenInvest was
among the leading facilitator institutions in the preparation of the
first ever mining conference and the report in this area. KenInvest
has also participated in preparation of the Investment Promotion and
Protection Agreements (IPPA), and Avoidance of Double Taxation
Agreements (DTA)together with other relevant ministries including
the following:-

1. France (DTA/IPPA) (Jan. 2006) – signed & awaiting ratification

2. Finland (DTA/IPPA) (Mar. 2006) – signed & awaiting
people ratification
3. Switzerland (IPPA) (Mar. 2006) - ratified & signed in 2006
4. Thailand (DTA) (Dec.2006) – signed & awaiting ratification
5. India (DTA) (June 2006) – renegotiation discussions
During the financial year 6. South Africa (DTA) (October 2007) – 2nd round negotiations
2005/2006, KenInvest licensed
99 (ninety nine) projects with an The institution is in the process of establishing a One-Stop- Shop
estimated planned investment (OSS), where all permits/ licences, payments and requirements to
of KShs. 16.9 billion, and with facilitate smooth market entry in Kenya is done under one roof.
potential employment of 11,972
people. In 2006/2007, 111 projects When it comes to Regional integration, this year the department has
were processed with an estimated been representing the organization in the Common Markets of East
capital of KShs. 82.9 billion, and Africa (COMESA) and has been chairing the National Technical Working
potential employment of 13,175 Group for the implementation of COMESA COMMON INVESTMENT
people. AREA AGREEMENT (CCIA). Not only did the organization represent
ANNUAL REPORT 2006/2007 21

the institution on matters on East Africa Community by assisting in

drafting various documents, for example: The East African Investors
guide, the East African Model Investment Code, but also it participated
in the development of Lake Victoria Basin Initiative (Investment and
development potentials in the Lake Victoria Basin Commission).

Investor Services

The institution through this department has played a big role in

contributing to the economic growth rate which is now at 6.3 per
cent. This was through the institutions’ key role in attracting domestic
and international investors. During the financial year 2005/2006,
KenInvest licensed 99 (ninety nine) projects with an estimated planned
investment of KShs. 16.9 billion, and with potential employment of
11,972 people. In 2006/2007, 111 projects were processed with an
estimated capital of KShs. 82.9 billion, and potential employment of
13,175 people. Below is Table 3 showing an analysis and comparison
of these years.

TABLE 3: Comparison of Projects Details (Number of Projects, Capital Costs,

Employment Levels)




2005/2006 41 58 99 7.3 9.6 16.9 11,621 351 11,972

2006/2007 31 80 111 15.6 67.3 82.9 10,520 2,655 13,175
TOTALS 72 138 210 22.9 76.9 99.8 22,141 3,006 25,147

The objective of aftercare services is a core function of this department;

to enhance retention and expansion of investments in Kenya. KenInvest
visited the actual project sites to verify the information contained in
project files, collected actual information on performance of projects,
and collected information on investor concerns and to advice
investors on other opportunities for re-investment such as expansion
and diversification. A total of 87 projects were visited in this financial
year. Over 260 applications were forwarded by the department to the
Immigration Department for approval.

Apart from the JKIA Liaison Office, we have a regional office in Eldoret
that covers the Western, Nyanza and the North Rift area.
Investors are encouraged to utilise available
opportunities in the construction sector
ANNUAL REPORT 2006/2007 23

of Board

The Public Audit Act 2003 requires the Board to prepare

financial statement for each financial year, which includes a
balance sheet showing in details the assets and liabilities of
the Authority, a statement of income and expenditure, and
such other statements that the Board may deem necessary.
The State Corporation Act (Cap 446) requires the Board to
ensure that proper books are kept recording all the property,
undertakings, funds, activities, contracts, transactions and
other business of the Board. The Board is also responsible for
safeguarding the assets of the Authority.

The Board members accept the responsibility for the annual

financial statements, which have been prepared using
appropriate accounting policies supported by reasonable
and prudent judgments and estimates, in conformity with
generally accepted accounting practice and in the manner
required by the State Corporations Act. The Board members
are of the opinion that the financial statements give a true
and fair view of the state of financial affairs of the Authority
and of its operating results, the Board members further
accepts responsibility for the maintenance of accounting The Public Audit
Act 2003 requires
the Board to prepare
financial statement
for each financial
year, which includes a
balance sheet showing
in details the assets
and liabilities of the
Authority, a statement
of income and
expenditure, and such
other statements that
the Board may deem

Auditors’ Report and Financial Statement

Report of the Controller and Auditor General on the Financial Statements of

Kenya Investment Authority for the Year ended 30th June 2007.

I have audited the financial statements of Kenya Investment Authority for the year ended 30th June, 2007
set out on pages 4 to 10 which comprise the balance sheet as at 30th June, 2007, the income statement,
statement of changes in equity and cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory notes in accordance with the provisions of Section 14
of the Public Audit Act, 2003. I have obtained all the information and explanation which, to the best of my
knowledge and belief, were necessary for the purpose of the audit.

The Board’s Responsibility for the Financial Statements

The Board is responsible for the preparation of financial statements which give a true and fair view of the
Authority’s state of affairs and its operating results in accordance with International Financial Reporting
Standards. This responsibility includes: Designing, implementing and maintaining internal controls relevant
to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.

Responsibility of the Controller and Auditor General

My responsibility is to express an independent opinion on the financial statements based on the audit. The
audit was conducted in accordance with the International Standards on Auditing. Those standards require
compliance with ethical requirements and that the audit be planned and performed with a view to obtaining
reasonable assurance that the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgments, whether due to fraud
or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Authority’s internal controls. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating
the overall presentation of the financial statements. I believe the audit provides a reasonable basis for my


In my opinion, proper books of account have been kept and the accompanying financial statements give a
true and fair view of the state of the financial affairs of the Authority as at 30th June, 2007 and of its surplus
and cash flows for the year then ended in accordance with the International Financial Reporting Standards
and comply with the Investment Promotion Act, 2004.

Signed by P.N.KOMORA, CBS

on the 31st March, 2008 at Nairobi
ANNUAL REPORT 2006/2007 25

Income & Expenditure Statement for the period ending 30th June 2007

Notes 2006/2007 2005/2006


GOK GRANTS 1 93,062,198 86,500,000

COMMISSIONS 2 23,464 21,258

TOTAL INCOME 93,593,662 86,749,258



BOARD EXPENSES 4 4,721,690 5,136,934
STAFF SALARIES, BENEFITS & TRAINING 5 58,971,977 55,098,356
OFFICE & GENERAL EXPENSES 6 1,228,640 1,619,856
TRANSPORT & TRAVEL EXPENSES 9 6,113,783 9,810,494
RENTAL OF PRODUCED ASSETS 10 3,626,131 3,737,790
INSURANCE COSTS 11 71,770 197,239
OTHER OPERATING EXPENSES 12 1,321,523 1,290,982
DEPRECIATION CHARGES 15 1,984,717 1,227,589

TOTAL EXPENDITURE 92,136,422 85,705,497

SURPLUS/(DEFICIT) FOR THE YEAR 1,457,240 1,043,761

Balance sheet for the period ending 30th June 2007

Notes 2006/2007 2005/2006



Sundry Debtors and Prepayments 17 1,318,005 1,390,082

Deposits 18 40,000 25,000
Bank Balances 19 9,016,762 23,782
Cash at hand 20 5,849 58,230

10,390,616 1,497,094

NET TOTAL ASSETS 19,200,402 12,264,335

SURPLUS / (DEFICIT) FOR THE YEAR 1,457,240 1,043,761
BALANCE B/F 1,835,474 791,713
3,292,714 1,835,474


Bank overdraft 21 - (261,350)
Accruals 22 15,907,688 690,212
15,907688 10,428,862

TOTAL FUNDS & LIABILITIES 19,200,402 12,264,335

ANNUAL REPORT 2006/2007 27



(a) Missions

1. Participated in the Mission to France - “Kenya Days in Paris- Building Bridges in Tourism, Trade
and Investments between Kenya and France”, 18th - 20th October 2006.”

2. Attended Climate Change Conference organized by United Nation bodies in conjunction with the
Ministry of Environment and Natural Resources in Nairobi

3. Kenya’s Trade Mission to Egypt. The objective of the mission was to explore mechanisms for
enhancing bilateral trade between the two countries and enhancing cooperation and networking
between respective business organizations/associations, the national standards bodies and the
export administration authorities. – 11th -15th February, 2007

4. United Nations Centre for Regional Development (UNCRD) mission in Ethiopia

5. There has been facilitation of delegations from various countries which include : China, Japan
Taiwan, U.S.A, Italy, Lybia, Germany, Europe, U.K, Malaysia, Iran and Australia,

6. UNIDO ITPO Exchange program in Tokyo was attended by one of staff and has resulted in 6
delegations coming to Kenya.

(b) Workshops

1. All stakeholders seminar in Vihiga District . The seminar was bring together various stakeholders
in the district to deliberate on issues affecting investment facilitation, opportunities and sources
of investment capital

2. Local Authority seminar for Kimilili Municipal Council. The seminar was on Policy Advocacy:
Local Authorities to create an enabling business environment - July, 2006.

3. Bishop Eddy Long’s – Investment Workshop. The one day workshop was to encourage Americans
to partner with Kenyan counterparts and to invest in the country. 31st July, 2006.

4. Institute of Public Analysis and Research (IPAR) /Foundation for Advanced Studies on International
Development (FASID) Workshop in Nairobi. August, 2006

5. Workshop on the launch of Lenovo ICT products and business presentation at the Grand Regency

6. Regional Workshop on World Trade Organisation issues. August, 2006.

7. The African Business Process Outsourcing and call centre conference. The theme of the
conference was “Business Process Outsourcing – Employment creating for the new millennium”
at Panari Hotel, Nairobi.

8. ProInvest-WAIPA Workshop on “How can IPAs in ACP work together to pool resources, efforts
and present a stronger regional Business case to an investor?” , 25-26 September 2006, Yaounde,
Cameroon. Participants were trained on how to apply the technique of location benchmarking

to understand the competitive position of each sub-region identified, and how the region can be
marketed more powerfully to inward investors)

9. Stakeholders Workshop on Review of Immigration Laws at Nakuru Waterbuck Hotel. The

functions of the Department of Immigration are governed by the Kenyan Constitution, Kenya
Citizens Act, Cap 170; Immigration Act, Cap 172; Aliens Restriction Act, Cap 173. The department
is also guided by the Visa Regulations and other relevant international conventions that Kenya
is a signatory to. The Immigration department has come up with a draft bill “Kenya Immigration
and Nationality Service Bill 2006’ which has consolidated all the operational laws. KenInvest
was identified as a stakeholder and participated in the workshop to review the immigration’s
operational laws on 29th October – 4th November, 2006

10. The LVEMP II (Lake Victoria Environmental Management Programme preparation Workshop –
Kisumu on 23rd November, 2006.

11. WAIPA Regional Investment Conference 17th – 18th November, 2006. The conference was
organized with the COMESA Regional Investment Agency in collaboration of the Arab Republic
of Egypt. The theme of Conference theme was ‘IPA Capacity Building & Investment Promotion
Strategy in Africa and the Middle East’ in Cairo – Egypt

12. Ad Hoc Meeting on Investment Policies organized by UNCTAD in Geneva 23-24 November, 2006.
The meeting was aimed at discussing issues of policy advocacy through investment promotion
agencies to influence policy change

13. Seminar on the implication of the expected COMESA Customs Union to exporters in Kenya and
how it will relate with EAC on 29th November, 2006 at the Grand Regency Hotel.

14. Workshop on Licensing in Local Authorities. The objective was to develop procedure to be used in
introducing licenses in local authority and to reduce the number of licenses the local authorities
are levying. - 8th December2006.

15. Stakeholders Workshop on Complaint handling and Electrical Installation work rules at the Kenya
School of Monetary Studies – 14th December, 2006.

16. Horticulture export strategy seminar held at Sirikwa Hotel in Eldoret. The objective of the seminar
was to build capacity /institutional support to stakeholders, promote national compliance/
awareness to World Trade Organisation (WTO) issues and also to identify critical intervention
areas. 30th November – 1st December, 2006

17. Business Seminar on Investor Tracking. The objective was to build capacity for Small Scale
Enterprise (SME’s) and assess growth of new investments as a follow up on policy advocacy/
sensitization campaigns by Kenya Investment Authority - Kisii-Nyamira (South Rift Region). 14th
-15th Dec,2006

18. Oikocredit 12th Anniversary celebrations. Oikocredit is worldwide cooperative society that
promotes global justice by challenging people, churches and others to share their resources
through socially responsible investments and by empowering disadvantaged people with credit.
19th December, 2006.

19. Workshop on Development cluster dedicated session and the 10th Regional Negotiation Forum
for Economic Partnership Agreements Bujumbura, Burundi form 18th -24th February, 2007.
ANNUAL REPORT 2006/2007 29

20. Fresh Produce Exporters Association (FPEAK) Organised horticultural exhibition on 9th -10th
March, 2007 at the Mwea Rice Mills Go downs, Wanguru.

21. Kenya Business Meeting Midrand Johannesburg. The purpose of the event was to promote trade,
tourism and investment opportunities available in Kenya. Organised by the Steadman South
Africa and Turning Point Networks. 27th March, 2007.

22. Kenyans in the Diaspora conference in London, UK. December 2006 and United States of America
and Canada, 22nd- 30th March 2007, Kenyan delegation led by the Minister of Finance, Honorable
Amos Kimunya.

23. UNIDO/ African Union Expert Group Meeting from 11th – 14th March, 2007 in Addis Ababa,
Ethiopia. The meeting was on building an information platform for Investment in Africa in African
Productive Capacity. Round table discussions on information and capacity building requirements
to assist African governments in attracting new foreign direct investment (FDI) inflows and
expand their beneficial impact on local economies. The meeting was jointly organized by UNIDO
and the African Union. East African Investment Conference 11th April, 2007. The Managing
Director represented all EAC and IPAS.

24. East African Investment Conference 11th April, 2007. The Managing Director represented all

25. Nyeri Investment Forum on 15th May, 2007. The theme of the forum was ‘Wealth Creation
Towards Vision 2030’. The seminar was organised in liaison with the Provincial Commissioner’s

26. Rumuruti Investment Forum ( Laikipia West District) on 17th May, 2007. The slogan of the
forum was ‘Kenya’s Livestock Capital’ and the theme ‘Value addition in livestock and medicinal
plants 2030’. The forum was organised in liaison with the Ujuzi and Biashara Community Based

27. Naro Moru, Nyeri and South district Investment Opportunities Forum – 19th May, 2007. The
theme of the seminar was ‘Where Nature Blends with Entrepreneurial Talent’. The seminar was
organised in liaison with the Provincial Commissioner’s Office in Nyeri environs.

28. Laikipia East Investment Forum – 21 May, 2007. The theme of the seminar was ‘Gem of Conservancy
& Investment’. The seminar was organised in liaison with the Provincial Commissioner’s Office in
Nyeri environs.

29. Investment Promotion and Senzitisation Workshop for Taita Taveta District on 25th May, 2007 in
Voi at the Coast Institute of Technology.

30. Workshop for the in-coming Trade, Investment and Tourism Mission from Dallas, Texas – half
day workshop. The theme of the workshop was “Building Business to Business Linkages between
Kenya and U.S.A.” 30th July, 2007.

31. Investing in Renewable Energies in East Africa. 6-7 September, 2007 KfW Bank/Main, Germany.
This regional conference was co-organised by the East Africa Business Council, Pro-Invest
and Africa-Verein. KenInvest coordinated and also participated in the conference. Frankfurt,

32. Attended COMESA UNCTAD FDI/TNC Statistical Workshop. The Workshop brought together
30 participants from national agencies involved in compilation of statistics and analysis of FDI
statistics and activities of TNC’s in COMESA region. - Zambia on 5th – 7th September, 2007.

c) Training

Members of staff have benefited in various trainings both locally and internationally.

These include:
1. Workshop Training on “Multilateral Trade Negotiations”, Nairobi 10th -14th July, 2006

2. Capacity Building Program on Intellectual Property Rights in practice: How to protect and
enforce intellectual property rights organised by IDLO in conjunction with Ministry of Justice
and Constitutional Affairs in Naivasha – 2nd – 6th October, 2006.

3. World Trade Conformity Assessment and Quality Infrastructure Development. The programme
was sponsored by SIDA and was divided into three phases. The first phase took place in Sweden.
The second phase was via e-learning and the third phase was finalized and completed in China
in November, 2006.

4. Economic Management Training Course in China. The focus of the seminar was to develop an
understanding of the China’s economic reforms and interaction with the rest of the world in
November, 2006.

5. Intellectual Property Rules and Protection for Developing Countries Course – Beijing China
November, 2006.

6. Distance Learning Seminar on ‘Procurement Contracting & Regulating Public Infrastructure

Development Projects’ organized by Organised by IDLO. The objective of the seminar was to
enhance capacity of legal officers, procurement officers to implement speedy, transparent and
fair acquisition of goods and services through competitive means, and to recommend actions on
how to strengthen public procurement system.

7. Training of Link Persons on Management of Wealth Declaration Forms -26th to 29th November,
2006 in Embu

8. Sensitization Training Workshop for Procurement Officers on the Public Procurement andDisposal
Act, 2005 and the Public Procurement Regulations, 2006 on 13th -14 February, 2007. The
workshop was to help the officers understand the standard Procurement documents.

9. Sixth Commonwealth – India Small Business Competitiveness Development Programme – India,

Kochi, 25 – 30 March, 2007. The training was to help understand the constraints faced by small
and medium enterprises and suggest way of intervening in their growth and development for the
country’s economic development

10. Pro invest Trinnex Workshop - The PROINVEST programme, in collaboration with the Uganda
Investment Authority, the World Association of Investment Promotion Agencies (WAIPA) and
UNCTAD, organised the East Africa – EU Economic Partnership Agreements. The purpose of the
workshop was assist Investment Promotion Agencies in unlocking the investment potential in
ANNUAL REPORT 2006/2007 31

tourism. 25 -26 June 2007 in Kampala, Uganda.

11. PROFIT 2007 Investment Conference on Tourism, 27 – 29 June 2007 At Speke Resort, Kampala
– Uganda . The purpose of the meeting was to facilitate business contacts and to stimulate
investment and cooperation agreements in the East Africa and Indian Ocean Region by bringing
together African, European and Third countries players and decision makers active in this

12. Intellectual Property Impact Program as a result of a successful in country training in Kenya
in October, 2006. Also ‘Training of Trainers’. Conducted by IDLO in Rome, Italy June 9- July 4,

13. Training on Intellectual Property Rights organized by the Republic of China in Beijing, China.
16th June – 15th July, 2007
Investors are encouraged to invest in
infrastructure projects in Kenya
ANNUAL REPORT 2006/2007 33

2. All the Licences that the Investment Certificate Covers


1 Registration under the Industrial Registration Act 118
2 Licence including conditional licence under the Trade Licensing Act 497
3 Import/Export Licence under the Imports, Exports Essential Supplies Act 502
4 Registration of premises as a Factory under the Factory Act 514
5 Approval of Plans under section 69G of the Factories Act 514
6 All Licences under the Local Government Act including any by-laws
made under the Act 265
7 Authority or consent under the Local Government Act, including under
any by-laws made under that act, or under the public Health act, to
undertake construction of works or premises 242
8 Development permission under section 33 of the Physical Planning Act,
1996 and certificate of Compliance required in section 30(7) of that Act N0.6 of 1996
9 Registration(Conditional) under the Industrial Training 237
10 Private carrier’s license under the Transport Licensing Act 404
11 Permit to use a standardization mark under the Standards Act 496
12 Permit required under section 25 of the Water Act 2002 No. 8 of
13 Licence for a steam vessel under the Lakes and Rivers Act 409
14 Environmental impact licence under the Environmental Management No. 8 of
and Co-ordination act, 1999 1999

15 Hotel licence under the Hotels and Restaurants Act(Conditional) 494
16 Hotel Manager’s licence under the Hotels and Restaurant Act for the
person specified in the investment certificate 494
17 General retail liquor licence and hotel liquor licence under the Liquor
licensing Act 121
18 Restaurant licence under the Hotels and Restaurants Act (Condition) 494
19 Restaurant manager’s licence under the Hotels and Restaurant Act
for the person specified in the investment certificate 494
20 Restaurant liquor licence under the Liquor licensing Act 121
21 Licence under Food, Drug and Chemical Substances Act to use premises
to sell, prepare, store or display for sale, any food 254
22 Registration under section 22(6) of the Agriculture Act 318

23 Licence to grow pyrethrum under the Pyrethrum Act 340

24 Registration as a grower under the sisal Act (Conditional) 341
25 Licence for a factory under the Sisal Act 341
26 Miller’s licence under the National Cereals and Produce Board Act 338
27 Manufacturing licence under the Tea Act 343
28 Licence to operate a sugar mill or a jaggery mill under the Sugar No.10 of
Act, 2001 2001
29 Licence to buy, sell, mill, warehouse, export or otherwise deal in or No. 9 of
transact business in coffee under the Coffee Act, 2001 2001
30 Movement permit under the Coffee Act, 2001 No. 9 of
31 Registration under Part V of the Dairy Industry Act (Condition) 336
32 Dairy manager licence under the Dairy Industrial Act for persons
specified in the investment certificate 336
33 Retail Licence under the Dairy Industry Act 336
34 Registration of premises as a dairy under the Public Health
(Milk and Dairies) Rules under the Public Health Act (Condition) 242
35 License as a purveyor of milk under the Public Health(Milk and
Dairies) Rules under the Public Health Act. 242
36 Buyer’s licence under the Hide, Skin and Leather Trade Act 359
37 Exporter’s licence or importer’s licence under the Hide, Skin and
Leather Trade Act 359
38 Registration certificate for premises under the Hide, Skin and Leather
Trade Act 359
39 Bacon factory licence under the Pig Industry Act
40 Licence to slaughter pigs under the Pig Industry Act
41 Licence to Keep pigs under the Animal Diseases (Control of Pigs
Diseases) Rules under the Animal Diseases Act 364
42 Licence to operate a slaughter under the Meat Control
(Local Slaughterhouses) Regulations under the Meat Control Act 356
43 Licence under section 8(10)(a) of the Kenya Meat Commission Act 363
44 Licence to slaughter pigs under the Pig Industry Act 361
45 Licence to keep pigs under the Animal Diseases (Control of Pigs
Diseases) Rules under the Animal Diseases Act 364
46 Licence for a sterilizing plant under the Fertilizers and Animal
Foodstuffs Act 345
47 Licence under section 8(1)(b) of the Kenya Meat Commission Act 363
ANNUAL REPORT 2006/2007 35

48 Stock trader’s licence under the Stock Traders Licensing Act 498
50 Certificate of registration of a vessel under the Fisheries Act 378
51 Licence to catch fish under the Fisheries Act 378
52 Licence for a foreign fishing vessel under the Fisheries Act 378
53 Manufacturing licence under the Pharmacy and Poisons Act 244
54 Registration of premises under the Pharmacy and Poisons Act 244
55 Licence for premises under the Pest Control Products Act 346
56 Licence to deal in motor vehicle components or accessories
under the Motor Vehicle Components and Accessories Act 520
57 Licence to carry on business of buying or selling second-hand
motor vehicles under the Second-Hand Motor Vehicles Act 484
58 Licence under the Scrap Metal Act 503
59 Public carrier’s licence under the Transport Licensing Act(Condition) 404
60 Prospecting right under the Mining Act 306
61 Exclusive prospecting licence under the Mining Act for specific lands 306
62 Lease under the Mining Act for specified lands 306
63 Consent under section 10 of the Wildlife (Conservation and
Management) act for specified lands in a National Park 376
64 Licence to Trade in unwrought precious metals under the trading in
unwrought Precious Metals Act 309
65 Diamond dealer’s licence under the Diamond Industry Protection Act 310
66 Cinema licence under the Films and Stage Plays Act 222
67 Filming licence under the Films and Stage Plays Act 222
68 Authorization to make a film in a National Park under the Wildlife
(Conservation and Management) Act 376
69 Licence to carry on a hire-purchase business under the Hire-Purchase Act 507
70 Licence under the Auctioneers Acts, 1996 5 of 19996
The agricultural industry has great growth
potential through use of technology and farming
Agriculture techniques that can make Kenya self sufficient in
food production
Head Office
Kenya Railways Headquarters, Block D, 3rd Floor, Off Haile Salassie
Avenue, Workshops Rd.,
P.O. Box 55704-00200,
Nairobi, Kenya
Telephone: +254 20 222 1401-4
Mobile: +254 722 205 424, 722 209 902, 0733 601 184
Fax: +254 20 224 3862
Email: info@investmentkenya.com
Website: www.investmentkenya.com

Representative Offices: Jomo Kenyatta International Airport (JKIA),

Eldoret, Kisumu and Mombasa, Moi International Airport.