Kenya: Ruto Unveils Investment & Export Promotion Bill 2026

• President William Ruto addressed the fifth American Chamber of Commerce Business Summit in Nairobi, reassuring foreign investors of Kenya's commitment to policy predictability.
• The government has implemented over 50 business-enabling reforms in the past three years, contributing to a doubling of foreign direct investment from $1.5 billion in 2022 to $3.2 billion.
• New measures include advance pricing agreements to minimize tax disputes and the upcoming Investment and Export Promotion Bill, 2026, currently before Parliament.
• The Investment and Export Promotion Bill, 2026, aims to provide safeguards against unlawful expropriation, guarantee capital repatriation, and establish a specialized Investment Tribunal and Presidential Dialogue Forum.
• American companies have committed over $600 million in new projects in Kenya since the last AmCham summit, including investments from Oracle, Coca-Cola, and Mars Wrigley.

The proposed Investment and Export Promotion Bill, 2026, currently before Parliament, is set to introduce robust legal protections, including safeguards against unlawful expropriation and guarantees for the repatriation of capital, profits, and dividends.

President William Ruto recently addressed the fifth American Chamber of Commerce (AmCham) Business Summit in Nairobi, delivering a strong message of reassurance to foreign investors. Speaking on Wednesday, September 9, President Ruto emphasized Kenya's commitment to fostering a predictable business environment and introducing new safeguards to mitigate regulatory uncertainty. These remarks come amidst ongoing discussions regarding the government's approach to foreign investment, particularly following recent pronouncements by the President and a notable dispute involving Tata Chemicals at Magadi.

The President articulated that Kenya is strategically positioning itself as a vital gateway to both African and global markets, actively encouraging international enterprises to establish production, innovation, and expansion hubs within the country. He declared, "Kenya is open and ready for business," signaling a renewed focus on attracting and retaining foreign capital. This proactive stance aims to solidify investor confidence, moving beyond mere presidential assurances to concrete policy frameworks.

President Ruto underscored that Kenya's investment proposition is increasingly built upon systemic reforms designed to offer businesses greater certainty. He highlighted that capital flows are not driven by presidential directives but by clear regulations, timely license issuance, prompt payment of verified refunds, respect for contracts, and stable investment terms. Over the past three years, the government has implemented more than 50 business-enabling reforms spanning taxation, finance, licensing, regulation, and special economic zones.

Key reforms cited include the elimination of Value Added Tax (VAT) on exported services, new legislation ensuring verified tax refunds are paid within six months or offset against tax liabilities, and the removal of a 30 percent local equity requirement that had previously deterred major technology companies. These efforts have coincided with a significant increase in foreign direct investment (FDI), which more than doubled from $1.5 billion in 2022 to $3.2 billion over the last three years, primarily driven by growing interest in renewable energy, the digital economy, and manufacturing sectors.

To further reduce regulatory uncertainty and enhance `Ruto foreign investor safeguards Kenya`, President Ruto announced additional measures, including the introduction of `Kenya advance pricing agreements`. These agreements are designed to minimize tax disputes and provide investors with greater clarity regarding their tax obligations. A cornerstone of these `Kenya policy predictability reforms` is the `Kenya Investment and Export Promotion Bill, 2026`, which is currently under parliamentary consideration.

The proposed Investment and Export Promotion Bill, 2026, currently before Parliament, is set to introduce robust legal protections, including safeguards against unlawful expropriation and guarantees for the repatriation of capital, profits, and dividends. Crucially, the bill also provides for the `Kenya investment tribunal establishment`, a specialized body to handle investment-related disputes, alongside a Presidential Dialogue Forum to foster ongoing communication between the government and investors. These legislative steps aim to embed long-term stability and confidence for foreign enterprises operating in Kenya.

President Ruto emphasized Kenya's strategic position as a hub for accessing vast regional markets. Investors in Kenya gain access not only to its domestic market but also to over 300 million people within the East African Community (EAC), 700 million in COMESA, and a continent-wide market of 1.4 billion through the African Continental Free Trade Area (AfCFTA). He reiterated the proposition: "Produce here, innovate here and serve Africa and the world from Kenya," highlighting the nation's ambition to capture a larger share of the $70 billion in FDI currently flowing into Africa, which represents only 4.3 percent of the global $1.6 trillion total.

Since the last `Ruto AmCham Business Summit`, American companies have committed over $600 million (Sh78 billion) in new projects within Kenya. Notable investments include Oracle's selection of Kenya for its inaugural public cloud region in Africa, Coca-Cola's $175 million (Sh22.7 billion) commitment, Mars Wrigley's $103 million (Sh13.3 billion) production line at Athi River, and a new manufacturing facility being established by SC Johnson. Furthermore, Ford Motor Company is actively exploring new opportunities in the country, underscoring the growing international interest. The summit itself convened investors and delegates from more than 30 countries under the theme, “Advancing Mutual Prosperity.”

Lawyers advising foreign investors in Kenya should monitor the progress of the Investment and Export Promotion Bill, 2026, as it promises new safeguards against expropriation, guarantees for capital repatriation, and the establishment of a specialized Investment Tribunal. They should also consider the implications of advance pricing agreements for minimizing tax disputes and enhancing regulatory certainty for their clients.

Source: Original reporting via Business Daily Africa