The Companies Bill 2015 has been signed into law, replacing the Companies Act Schapter 486 of the Laws of Kenya.
The new laws were signed by President Uhuru Kenyatta earlier this week and are aimed at revolutionalizing business in the country by getting rid of pre-existing laws that have been a hindrance in successful business operations within the country.
The new law codifies common law principles – in particular, the indoor management rule and common law fiduciary duties of directors.
Along with this, it modernizes company law by recognising electronic communication and the use of websites and other electronic avenues for a company’s communications. The new Act has also increased the penalties and fines for offences relating to companies.
Interestingly, start-ups falling under the ‘small company’ regime appear to be the biggest gainers under this new Act as they will be able to easily set-up shop, identify, protect and commercialize their IP assets within fairly wide monetary thresholds paving the way for growth.