Corporate and Commercial Law

9 August 2021

Looking to book tourists on Airbnb? Careful, the Tourism Regulatory Authority in Kenya is watching

Under the Kenyan Tourism Act No. 28 of 2011, no person is permitted to carry out tourism activities or services in the country without a licence. The applicable tourism activities and services are listed in the Ninth Schedule of the Act and are categorized into Classes “A” to “H” Enterprises.

The application for licensing is required to be made to the Tourism Regulatory Authority in Kenya using a prescribed form which can be downloaded from the Authority’s website. The licence granted is an annual licence which must be renewed every year. There is also supporting documentation that will need to be submitted together with the application depending on the person, entity or business seeking licensing.

Short term rentals and accommodation targeted at tourists fall under Class “A” Enterprises which includes hotels, motels, inns, hostels, serviced flats and apartments, beach and holiday cottages, villas, homestays, guest houses and time shares.

8 February 202117 February 2021

Beneficial Ownership Requirements for Companies incorporated in Kenya

Under section 93A of the Companies Act No. 17 of 2015, companies are now required to keep a register of the beneficial owners of the company and to provide a copy of this register to the Companies registry, within thirty (30) days of its preparation.

6 May 202014 May 2020

Distinction between Employees and Independent Contractors

Contracts on service provision may take the form of a contract of service (employment contract) or a contract for services (independent contractor/consultant agreement). Independent contractor agreements involve entities or individuals who are genuinely self-employed, not the company’s employee. When issues arise, the Courts usually look into the substance rather than the form of such agreements to determine whether or not they are in fact employment contracts masked as independent contractor agreements to enable an employer avoid its obligations. Such an investigation into substance would include an examination of the contractual provisions in addition to whether or not the level of control amounts to employment. The following is a summary of the distinction between employees and independent contractors:

16 May 201916 May 2019

The Business Prenup – The Importance of a Shareholders Agreement

Introduction

No one goes into a marriage already expecting the worst, but even the most seemingly stable couples can hit bumps in the road that tear them apart. Prenuptial agreements have the power to protect both parties when entering a marriage. The whole idea being to minimize the uncertainties of the law and litigation, if something does happen and the marriage ends in divorce or death.

Similarly, a shareholders’ agreement (business prenup) would be extremely handy in the event of a dispute or a breakdown in trust between the shareholders of a company i.e. disagreement on the business of a company, or the methods of carrying out the same, or their decision making powers etc. A lack of certainty created by not having a shareholders’ agreement in place can often lead to disputes amongst the shareholders which can be costly to deal with. Continue reading “The Business Prenup – The Importance of a Shareholders Agreement”