Kenya: Beneficial Ownership Transparency Regulations Introduce New Disclosure Requirements

The Kenyan government has introduced new regulations aimed at promoting transparency in beneficial ownership structures through the publication of Legal Notice No. 32 of 2022, which amends the Companies (Beneficial Ownership Information) Regulations, 2020.

Key Provisions

The amendments expand the scope of disclosure of beneficial ownership information by companies to include:
- Procuring entities
- Contracting authorities
Companies participating in public procurement and assets disposal will be required to disclose beneficial ownership information to procuring entities.
Companies involved in public-private partnerships will also be required to disclose beneficial ownership information to contracting authorities.
The Government has been authorized to disclose beneficial ownership information of a company where such information affects the country.
Public tenders: companies seeking government and public body tenders will now be required to disclose beneficial ownership information as part of their bid applications.

Risks and Challenges

There is a risk of breach of data privacy for individual beneficial owners, particularly if sensitive personal information is publicly disclosed without consent.
The publication of beneficial ownership information may contradict confidentiality provisions under the Public Procurement and Asset Disposal Act.

What You Need to Do

Ensure that your company’s beneficial owners register is correct and up-to-date to avoid fines and potential disqualification from tender applications.
Be aware of the new disclosure requirements for public tenders and ensure compliance.
Consider consulting with a professional services firm, such as Ernst & Young (Kenya), to ensure compliance with the regulations.

Contact

For additional information or guidance on this Alert, please contact:

Francis Kamau
Christopher Kirathe
Hadijah Nannyomo
David King’ori
Simon Njoroge Ernst & Young (Kenya), Nairobi