Call for Comments for Removal of 30pct local Shareholding for Foreign ICT Companies
Dear Listers, Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period. For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564> -- *Kind Regards,* *David Indeje* *KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/>
In my view, this would make it easier for a lot of foreign companies to set up shop here, boost investments, improve employment prospects for young talent and better the economy as a whole. The requirement keeps a lot of companies out of the country. A number ceased active presence with its introduction and are closely watching the developments to see whether they can reactivate their presence or not. Thanks for sharing the article. On Wed, 12 Jul 2023, 11:58 David Indeje via KICTANet, < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
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My comment would be to echo Walubengo's point in April 2023: "The rationale for the 30% rule was simply to ensure foreign investors, especially in the high-tech sector like ICT, would be forced to partner with locals for purposes of knowledge transfer." -- Instead of removing the requirement, improve monitoring and reporting on the tech and knowledge transfer. -- Enhance transparency in operator licencing to minimize the abuse of the requirement. Removing the requirement may mean the local gatekeepers and brokers will achieve their armtwisting without any risk of exposure. My two cents... On Wed, Jul 12, 2023, 12:09 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
Out of curiosity, has anyone done some research or come across research on the impact of this directive on the ecosystem. Is the ecosystem extractive or beneficial. Can we measure the level of knowledge transfer that such a directive has resulted in?, it would be nice to have a debate on the pros and cons which can be part of our contribution. Best Regards On Wed, Jul 12, 2023 at 1:04 PM Wainaina Mungai via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
My comment would be to echo Walubengo's point in April 2023:
"The rationale for the 30% rule was simply to ensure foreign investors, especially in the high-tech sector like ICT, would be forced to partner with locals for purposes of knowledge transfer."
-- Instead of removing the requirement, improve monitoring and reporting on the tech and knowledge transfer.
-- Enhance transparency in operator licencing to minimize the abuse of the requirement.
Removing the requirement may mean the local gatekeepers and brokers will achieve their armtwisting without any risk of exposure.
My two cents...
On Wed, Jul 12, 2023, 12:09 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A
Removal of the 30% local shareholding will attract foreign investment, stimulate economic growth, foster innovation, technological advancement, promote competition and market efficiency, expand export potential and access to global markets. However, on the cons echoing Mr. Walubengo's sentiments. There are certain risks to it such as; potential loss of local control and influence over the ICT sector, decreased incentive for knowledge transfer and skills development, risk of economic leakage and reduced local economic benefits and disruption to existing local ICT companies and potential job losses. Case Study: 1. Malaysia Digital replaces Multimedia Super Corridor exempting foreign companies in certain areas from local ownership requirements. This led to the boost of foreign investment. https://www.mondaq.com/fin-tech/1227186/multimedia-super-corridor-msc-to-mal... 2. Singapore's Information Development Authority, business incentives for foreign investors. However, most of them have local ownership requirements in order to promote knowledge transfer and foster collaboration with local entities. The policy aimed to ensure that foreign investors partnered with local companies, enabling technology and skills transfer to the local workforce. The IDA closely monitored compliance with the policy and provided support for companies to meet the requirement. This approach helped attract foreign investments while promoting local capacity building and innovation in the ICT sector. https://www.aseanbriefing.com/news/business-and-tax-incentives-for-foreign-i... https://www.imda.gov.sg/how-we-can-help/smes-go-digital/start-digital 3.India's Software Technology Parks (STP) implemented a different approach by not mandating a specific local shareholding requirement for foreign ICT companies On Wed, 12 Jul 2023, 13:40 Barrack Otieno via KICTANet, < kictanet@lists.kictanet.or.ke> wrote:
Out of curiosity, has anyone done some research or come across research on the impact of this directive on the ecosystem. Is the ecosystem extractive or beneficial. Can we measure the level of knowledge transfer that such a directive has resulted in?, it would be nice to have a debate on the pros and cons which can be part of our contribution.
Best Regards
On Wed, Jul 12, 2023 at 1:04 PM Wainaina Mungai via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
My comment would be to echo Walubengo's point in April 2023:
"The rationale for the 30% rule was simply to ensure foreign investors, especially in the high-tech sector like ICT, would be forced to partner with locals for purposes of knowledge transfer."
-- Instead of removing the requirement, improve monitoring and reporting on the tech and knowledge transfer.
-- Enhance transparency in operator licencing to minimize the abuse of the requirement.
Removing the requirement may mean the local gatekeepers and brokers will achieve their armtwisting without any risk of exposure.
My two cents...
On Wed, Jul 12, 2023, 12:09 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
Maybe another way to address the issue is to enumerate the advantages the foreign investors can derive from having local shareholding. Wainaina On Tue, Jul 18, 2023, 12:43 PM Linda Wairure via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Removal of the 30% local shareholding will attract foreign investment, stimulate economic growth, foster innovation, technological advancement, promote competition and market efficiency, expand export potential and access to global markets.
However, on the cons echoing Mr. Walubengo's sentiments. There are certain risks to it such as; potential loss of local control and influence over the ICT sector, decreased incentive for knowledge transfer and skills development, risk of economic leakage and reduced local economic benefits and disruption to existing local ICT companies and potential job losses.
Case Study: 1. Malaysia Digital replaces Multimedia Super Corridor exempting foreign companies in certain areas from local ownership requirements. This led to the boost of foreign investment.
https://www.mondaq.com/fin-tech/1227186/multimedia-super-corridor-msc-to-mal...
2. Singapore's Information Development Authority, business incentives for foreign investors. However, most of them have local ownership requirements in order to promote knowledge transfer and foster collaboration with local entities. The policy aimed to ensure that foreign investors partnered with local companies, enabling technology and skills transfer to the local workforce. The IDA closely monitored compliance with the policy and provided support for companies to meet the requirement. This approach helped attract foreign investments while promoting local capacity building and innovation in the ICT sector.
https://www.aseanbriefing.com/news/business-and-tax-incentives-for-foreign-i... https://www.imda.gov.sg/how-we-can-help/smes-go-digital/start-digital
3.India's Software Technology Parks (STP) implemented a different approach by not mandating a specific local shareholding requirement for foreign ICT companies
On Wed, 12 Jul 2023, 13:40 Barrack Otieno via KICTANet, < kictanet@lists.kictanet.or.ke> wrote:
Out of curiosity, has anyone done some research or come across research on the impact of this directive on the ecosystem. Is the ecosystem extractive or beneficial. Can we measure the level of knowledge transfer that such a directive has resulted in?, it would be nice to have a debate on the pros and cons which can be part of our contribution.
Best Regards
On Wed, Jul 12, 2023 at 1:04 PM Wainaina Mungai via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
My comment would be to echo Walubengo's point in April 2023:
"The rationale for the 30% rule was simply to ensure foreign investors, especially in the high-tech sector like ICT, would be forced to partner with locals for purposes of knowledge transfer."
-- Instead of removing the requirement, improve monitoring and reporting on the tech and knowledge transfer.
-- Enhance transparency in operator licencing to minimize the abuse of the requirement.
Removing the requirement may mean the local gatekeepers and brokers will achieve their armtwisting without any risk of exposure.
My two cents...
On Wed, Jul 12, 2023, 12:09 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
-- Barrack O. Otieno +254721325277 +254733206359 Skype: barrack.otieno PGP ID: 0x2611D86A
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
I doubt there is any link whatsoever between local shareholdings of a company and knowledge transfer. One is purely about financial ownership and profit sharing; the other is about business partnerships across the value chain as well as engagement with the wider ecosystem in the long-term. If the purpose is knowledge transfer, incentives or requirements related to internships and training make more sense (Kenya does have some tax incentives for internships I believe). Or potentially R&D. It has always mystified me that Kenya has no incentives whatsoever for local R&D when the bottom line in almost all countries where R&D is strong is that tax incentives are critical. And those incentives have played a very important role in the growth of academic research which also benefits higher education financing, teaching quality and much more besides…. Adam From: Wainaina Mungai via KICTANet <kictanet@lists.kictanet.or.ke> Sent: Wednesday, 12 July 2023 13:03 To: Adam Lane <adam.lane@huawei.com> Cc: Wainaina Mungai <wainaina.mungai@gmail.com> Subject: [kictanet] Re: Call for Comments for Removal of 30pct local Shareholding for Foreign ICT Companies My comment would be to echo Walubengo's point in April 2023: "The rationale for the 30% rule was simply to ensure foreign investors, especially in the high-tech sector like ICT, would be forced to partner with locals for purposes of knowledge transfer." -- Instead of removing the requirement, improve monitoring and reporting on the tech and knowledge transfer. -- Enhance transparency in operator licencing to minimize the abuse of the requirement. Removing the requirement may mean the local gatekeepers and brokers will achieve their armtwisting without any risk of exposure. My two cents... On Wed, Jul 12, 2023, 12:09 PM David Indeje via KICTANet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: Dear Listers, Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period. For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com)<https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564> -- Kind Regards, David Indeje KICTANet Communications _____________________________________ [https://cytonn.sheerhr.com/signature/icon/ico-phone.png]+254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke<https://kictanet.or.ke/> | Twitter<https://twitter.com/kictanet> | LinkedIn<https://www.linkedin.com/company/18428106/admin/> | Facebook<https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke> To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke<mailto:kictanet-leave@lists.kictanet.or.ke> Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/ Mailing List Posts Online: https://posts.kictanet.or.ke/ Twitter: https://twitter.com/KICTANet/ Facebook: https://www.facebook.com/KICTANet/ Instagram: https://www.instagram.com/KICTANet/ LinkedIn: https://www.linkedin.com/company/kictanet/ YouTube: https://www.youtube.com/channel/UCbcLVjnPtTGBEeYLGUb2Yow/ KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement. KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications. KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
Great points Adam 👍 and Barrack... Empirical evidence is critical and research is the way to identify it. Have anyone, especially the regulators issuing the licences, been measuring impact and compliance or is the government action based on subjective feedback from 'potential investors'? On Wednesday, July 12, 2023, Adam Lane <adam.lane@huawei.com> wrote:
I doubt there is any link whatsoever between local shareholdings of a company and knowledge transfer. One is purely about financial ownership and profit sharing; the other is about business partnerships across the value chain as well as engagement with the wider ecosystem in the long-term.
If the purpose is knowledge transfer, incentives or requirements related to internships and training make more sense (Kenya does have some tax incentives for internships I believe). Or potentially R&D. It has always mystified me that Kenya has no incentives whatsoever for local R&D when the bottom line in almost all countries where R&D is strong is that tax incentives are critical. And those incentives have played a very important role in the growth of academic research which also benefits higher education financing, teaching quality and much more besides….
Adam
*From:* Wainaina Mungai via KICTANet <kictanet@lists.kictanet.or.ke> *Sent:* Wednesday, 12 July 2023 13:03 *To:* Adam Lane <adam.lane@huawei.com> *Cc:* Wainaina Mungai <wainaina.mungai@gmail.com> *Subject:* [kictanet] Re: Call for Comments for Removal of 30pct local Shareholding for Foreign ICT Companies
My comment would be to echo Walubengo's point in April 2023:
"The rationale for the 30% rule was simply to ensure foreign investors, especially in the high-tech sector like ICT, would be forced to partner with locals for purposes of knowledge transfer."
-- Instead of removing the requirement, improve monitoring and reporting on the tech and knowledge transfer.
-- Enhance transparency in operator licencing to minimize the abuse of the requirement.
Removing the requirement may mean the local gatekeepers and brokers will achieve their armtwisting without any risk of exposure.
My two cents...
On Wed, Jul 12, 2023, 12:09 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
--
*Kind Regards,*
*David Indeje*
*KICTANet Communications * _____________________________________
+254 (0) 711 385 945 | +254 (0) 734 024 856
KICTANet portals
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
Hi Listers, This is a welcome move, corporate ownership and shareholding should be determined by business dynamics and regulation should only come in to handle issues like unfair competition. On the value chain and knowledge transfer conversations I agree that these can be achieved without necessarily enforcing local ownership, global trends show a policy shift in a similar direction for example the UAE now allows 100% foreign ownership to foreign investors in commercial companies from the previous 51% compulsory localised shareholding. Kind regards, Rosemary. On Wed, Jul 12, 2023 at 9:16 PM Wainaina Mungai via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Great points Adam 👍 and Barrack...
Empirical evidence is critical and research is the way to identify it. Have anyone, especially the regulators issuing the licences, been measuring impact and compliance or is the government action based on subjective feedback from 'potential investors'?
On Wednesday, July 12, 2023, Adam Lane <adam.lane@huawei.com> wrote:
I doubt there is any link whatsoever between local shareholdings of a company and knowledge transfer. One is purely about financial ownership and profit sharing; the other is about business partnerships across the value chain as well as engagement with the wider ecosystem in the long-term.
If the purpose is knowledge transfer, incentives or requirements related to internships and training make more sense (Kenya does have some tax incentives for internships I believe). Or potentially R&D. It has always mystified me that Kenya has no incentives whatsoever for local R&D when the bottom line in almost all countries where R&D is strong is that tax incentives are critical. And those incentives have played a very important role in the growth of academic research which also benefits higher education financing, teaching quality and much more besides….
Adam
*From:* Wainaina Mungai via KICTANet <kictanet@lists.kictanet.or.ke> *Sent:* Wednesday, 12 July 2023 13:03 *To:* Adam Lane <adam.lane@huawei.com> *Cc:* Wainaina Mungai <wainaina.mungai@gmail.com> *Subject:* [kictanet] Re: Call for Comments for Removal of 30pct local Shareholding for Foreign ICT Companies
My comment would be to echo Walubengo's point in April 2023:
"The rationale for the 30% rule was simply to ensure foreign investors, especially in the high-tech sector like ICT, would be forced to partner with locals for purposes of knowledge transfer."
-- Instead of removing the requirement, improve monitoring and reporting on the tech and knowledge transfer.
-- Enhance transparency in operator licencing to minimize the abuse of the requirement.
Removing the requirement may mean the local gatekeepers and brokers will achieve their armtwisting without any risk of exposure.
My two cents...
On Wed, Jul 12, 2023, 12:09 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
--
*Kind Regards,*
*David Indeje*
*KICTANet Communications * _____________________________________
+254 (0) 711 385 945 | +254 (0) 734 024 856
KICTANet portals
KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/>
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
-- Rosemary Koech-Kimwatu Advocate Public Policy and Regulatory Affairs Specialist Tel: +254 718 181644
Hi Rosemary, Empirical evidence would really help in this discussion locally. What informed this decision? What were the pros and cons of the decision before we repeal. Is there a National interest in this matter or are we dealing with a Private Sector engineered shift. We also need to guard against extraction. We used to manufacture phones locally at GTI. We killed the industry who knows for what reasons. Public Participation should not be a yes or no affair , we need some information to guide the conversation. Best Regards On Thu, 13 Jul 2023, 8:20 am Rosemary Koech-Kimwatu via KICTANet, < kictanet@lists.kictanet.or.ke> wrote:
Hi Listers,
This is a welcome move, corporate ownership and shareholding should be determined by business dynamics and regulation should only come in to handle issues like unfair competition. On the value chain and knowledge transfer conversations I agree that these can be achieved without necessarily enforcing local ownership, global trends show a policy shift in a similar direction for example the UAE now allows 100% foreign ownership to foreign investors in commercial companies from the previous 51% compulsory localised shareholding.
Kind regards, Rosemary.
On Wed, Jul 12, 2023 at 9:16 PM Wainaina Mungai via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Great points Adam 👍 and Barrack...
Empirical evidence is critical and research is the way to identify it. Have anyone, especially the regulators issuing the licences, been measuring impact and compliance or is the government action based on subjective feedback from 'potential investors'?
On Wednesday, July 12, 2023, Adam Lane <adam.lane@huawei.com> wrote:
I doubt there is any link whatsoever between local shareholdings of a company and knowledge transfer. One is purely about financial ownership and profit sharing; the other is about business partnerships across the value chain as well as engagement with the wider ecosystem in the long-term.
If the purpose is knowledge transfer, incentives or requirements related to internships and training make more sense (Kenya does have some tax incentives for internships I believe). Or potentially R&D. It has always mystified me that Kenya has no incentives whatsoever for local R&D when the bottom line in almost all countries where R&D is strong is that tax incentives are critical. And those incentives have played a very important role in the growth of academic research which also benefits higher education financing, teaching quality and much more besides….
Adam
*From:* Wainaina Mungai via KICTANet <kictanet@lists.kictanet.or.ke> *Sent:* Wednesday, 12 July 2023 13:03 *To:* Adam Lane <adam.lane@huawei.com> *Cc:* Wainaina Mungai <wainaina.mungai@gmail.com> *Subject:* [kictanet] Re: Call for Comments for Removal of 30pct local Shareholding for Foreign ICT Companies
My comment would be to echo Walubengo's point in April 2023:
"The rationale for the 30% rule was simply to ensure foreign investors, especially in the high-tech sector like ICT, would be forced to partner with locals for purposes of knowledge transfer."
-- Instead of removing the requirement, improve monitoring and reporting on the tech and knowledge transfer.
-- Enhance transparency in operator licencing to minimize the abuse of the requirement.
Removing the requirement may mean the local gatekeepers and brokers will achieve their armtwisting without any risk of exposure.
My two cents...
On Wed, Jul 12, 2023, 12:09 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
--
*Kind Regards,*
*David Indeje*
*KICTANet Communications * _____________________________________
+254 (0) 711 385 945 | +254 (0) 734 024 856
KICTANet portals
KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/>
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
_______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
-- Rosemary Koech-Kimwatu Advocate Public Policy and Regulatory Affairs Specialist Tel: +254 718 181644
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
I think the introduction of 30% local shareholding was brought in after a couple of years agitation by industry players that ICT plays a critical role in achieving government development objectives hence cannot be left wholly in the hands of foreign companies. This was also informed by the fact foreign companies repatriate all their profits back to their mother countries hence not benefiting Kenyan economy. This policy was also meant to subject foreign companies into Kenya laws. A foreign company registered in Kenya as a branch of the parent companies would insist to be subjected to the laws of their mother country in case of a dispute. Its seems the big tech companies like Amazon are arm twisting the government to repeal this law before they can invest in Kenya. What would happen to the data protection law if these tech companies would not be subjected to Kenyan laws? Maybe the experts can help us understand. Kind regards, Wycliff On Wed, Jul 12, 2023 at 12:11 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
Thanks Wycliff, Are there better ways to deliver on the objectives of the 30% shareholding and do we have data to demonstrate impact? Objectives 1. Ensure knowledge transfer 2. Critical sector cannot be left wholly in the hands of foreign companies. 3. Limit repatriation of profits 4. Subject foreign companies into Kenya law I'd assume No. 3&4 have been achieved while (2) remains an important economic and national security objective justifying the 30% shareholding. On Mon, Jul 17, 2023, 9:31 AM Wycliff Ochieng via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
I think the introduction of 30% local shareholding was brought in after a couple of years agitation by industry players that ICT plays a critical role in achieving government development objectives hence cannot be left wholly in the hands of foreign companies. This was also informed by the fact foreign companies repatriate all their profits back to their mother countries hence not benefiting Kenyan economy. This policy was also meant to subject foreign companies into Kenya laws. A foreign company registered in Kenya as a branch of the parent companies would insist to be subjected to the laws of their mother country in case of a dispute. Its seems the big tech companies like Amazon are arm twisting the government to repeal this law before they can invest in Kenya. What would happen to the data protection law if these tech companies would not be subjected to Kenyan laws? Maybe the experts can help us understand.
Kind regards,
Wycliff
On Wed, Jul 12, 2023 at 12:11 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
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Goodmorning, @Eng. Wainaina Mungai <wainaina.mungai@gmail.com> I n agree with you to an extent though we still need some Empirical data. Wyckoff, you raise interesting points through more background information would help to avoid allegations. Regards On Mon, 17 Jul 2023, 11:59 am Wainaina Mungai via KICTANet, < kictanet@lists.kictanet.or.ke> wrote:
Thanks Wycliff,
Are there better ways to deliver on the objectives of the 30% shareholding and do we have data to demonstrate impact?
Objectives 1. Ensure knowledge transfer
2. Critical sector cannot be left wholly in the hands of foreign companies.
3. Limit repatriation of profits
4. Subject foreign companies into Kenya law
I'd assume No. 3&4 have been achieved while (2) remains an important economic and national security objective justifying the 30% shareholding.
On Mon, Jul 17, 2023, 9:31 AM Wycliff Ochieng via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
I think the introduction of 30% local shareholding was brought in after a couple of years agitation by industry players that ICT plays a critical role in achieving government development objectives hence cannot be left wholly in the hands of foreign companies. This was also informed by the fact foreign companies repatriate all their profits back to their mother countries hence not benefiting Kenyan economy. This policy was also meant to subject foreign companies into Kenya laws. A foreign company registered in Kenya as a branch of the parent companies would insist to be subjected to the laws of their mother country in case of a dispute. Its seems the big tech companies like Amazon are arm twisting the government to repeal this law before they can invest in Kenya. What would happen to the data protection law if these tech companies would not be subjected to Kenyan laws? Maybe the experts can help us understand.
Kind regards,
Wycliff
On Wed, Jul 12, 2023 at 12:11 PM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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Indeed, Any business operating in Kenya is submitted to Kenyan law. There's no issues with that. And why would you want to limit repatriation of profits? That won't encourage foreign investors. Having a competitive market will limit profits. So encourage a competitive market. Local ownership of critical sectors should not be required if all companies (local or foreign) are regulated and supervised properly. ________________________________ From:Wainaina Mungai via KICTANet <kictanet@lists.kictanet.or.ke> To:Adam Lane <adam.lane@huawei.com> Cc:Wainaina Mungai <wainaina.mungai@gmail.com> Date:2023-07-17 11:49:14 Subject:[kictanet] Re: Call for Comments for Removal of 30pct local Shareholding for Foreign ICT Companies Thanks Wycliff, Are there better ways to deliver on the objectives of the 30% shareholding and do we have data to demonstrate impact? Objectives 1. Ensure knowledge transfer 2. Critical sector cannot be left wholly in the hands of foreign companies. 3. Limit repatriation of profits 4. Subject foreign companies into Kenya law I'd assume No. 3&4 have been achieved while (2) remains an important economic and national security objective justifying the 30% shareholding. On Mon, Jul 17, 2023, 9:31 AM Wycliff Ochieng via KICTANet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: I think the introduction of 30% local shareholding was brought in after a couple of years agitation by industry players that ICT plays a critical role in achieving government development objectives hence cannot be left wholly in the hands of foreign companies. This was also informed by the fact foreign companies repatriate all their profits back to their mother countries hence not benefiting Kenyan economy. This policy was also meant to subject foreign companies into Kenya laws. A foreign company registered in Kenya as a branch of the parent companies would insist to be subjected to the laws of their mother country in case of a dispute. Its seems the big tech companies like Amazon are arm twisting the government to repeal this law before they can invest in Kenya. What would happen to the data protection law if these tech companies would not be subjected to Kenyan laws? Maybe the experts can help us understand. Kind regards, Wycliff On Wed, Jul 12, 2023 at 12:11 PM David Indeje via KICTANet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: Dear Listers, Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period. For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com)<https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564> -- Kind Regards, David Indeje KICTANet Communications _____________________________________ [https://cytonn.sheerhr.com/signature/icon/ico-phone.png]+254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke<https://kictanet.or.ke/> | Twitter<https://twitter.com/kictanet> | LinkedIn<https://www.linkedin.com/company/18428106/admin/> | Facebook<https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke> To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke<mailto:kictanet-leave@lists.kictanet.or.ke> Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/ Mailing List Posts Online: https://posts.kictanet.or.ke/ Twitter: https://twitter.com/KICTANet/ Facebook: https://www.facebook.com/KICTANet/ Instagram: https://www.instagram.com/KICTANet/ LinkedIn: https://www.linkedin.com/company/kictanet/ YouTube: https://www.youtube.com/channel/UCbcLVjnPtTGBEeYLGUb2Yow/ KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement. KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications. KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform. _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke> To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke<mailto:kictanet-leave@lists.kictanet.or.ke> Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/ Mailing List Posts Online: https://posts.kictanet.or.ke/ Twitter: https://twitter.com/KICTANet/ Facebook: https://www.facebook.com/KICTANet/ Instagram: https://www.instagram.com/KICTANet/ LinkedIn: https://www.linkedin.com/company/kictanet/ YouTube: https://www.youtube.com/channel/UCbcLVjnPtTGBEeYLGUb2Yow/ KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement. KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications. KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
. On Wed, Jul 12, 2023 at 11:59 AM David Indeje via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
Dear Listers,
Kenya’s Ministry of Information, Communications and Technology has proposed the removal of the 30% local shareholding requirement for foreign ICT companies. The National ICT Policy Guidelines, 2020, gazetted under section 5(4) of the Kenya Information and Communications Act (KICA) (No.2 of 1998), currently requires all licensees to comply with the 30% local shareholding provisions within a 3-year grace period.
For more information: State frees Airtel, tech giants from 30pc local stake sale - Business Daily (businessdailyafrica.com) <https://www.businessdailyafrica.com/bd/economy/state-frees-airtel-from-30pc-local-stake-sale-requirement--4300564>
-- *Kind Regards,*
*David Indeje*
*KICTANet Communications *_____________________________________ +254 (0) 711 385 945 | +254 (0) 734 024 856 KICTANet portals KICTANet.or.ke <https://kictanet.or.ke/> | Twitter <https://twitter.com/kictanet> | LinkedIn <https://www.linkedin.com/company/18428106/admin/> | Facebook <https://www.facebook.com/KICTANet/> _______________________________________________ KICTANet mailing list -- kictanet@lists.kictanet.or.ke To unsubscribe send an email to kictanet-leave@lists.kictanet.or.ke Unsubscribe or change your options at: https://mm3-lists.kictanet.or.ke/mm/lists/kictanet.lists.kictanet.or.ke/
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KICTANet is a multi-stakeholder Think Tank for people and institutions interested and involved in ICT policy and regulation. KICTANet is a catalyst for reform in the Information and Communication Technology sector. Its work is guided by four pillars of Policy Advocacy, Capacity Building, Research, and Stakeholder Engagement.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
KICTANet - The Power of Communities, is Kenya's premier ICT policy engagement platform.
participants (9)
-
Adam Lane -
Barrack Otieno -
David Indeje -
Kukubo Masibo -
Linda Wairure -
Neema MASITSA -
Rosemary Koech-Kimwatu -
Wainaina Mungai -
Wycliff Ochieng