Agpo Rules On Foreign Ownership

Can a Company with a Foreigner Get an AGPO Certificate?

AGPO (Access to Government Procurement Opportunities) is a special government scheme in Kenya. It is meant to uplift and empower local groups who need extra support, which are youth, women, and people living with disabilities. Therefore, a company with foreign shareholder or director is not eligible for AGPO as it is against the rule that only local citizens can own and run these businesses.

Using silent structures or nominee setups to bypass citizen rules or to mask a foreign or non-qualifying individual’s ownership and leadership goes against procurement laws and will result in a rejected application during CR12 and beneficial ownership reviews.

Providing false details on official government documents to gain access to local tenders is against public procurement laws and can lead to penalties or blacklisting.

To be eligible for an AGPO certificate, a limited company must follow these rules for owners and leaders:

• Shareholders: At least 70% of the company’s shares must be owned by qualifying Kenyans under the Youth, Women, or PWD category. If a foreigner owns even 1% the company is disqualified.
• Directors: 100% of the directors must be qualifying Kenyan citizens. Having even one foreign director means the company fails the test.

What a company needs to register:

The following documents are mandatory to apply on the AGPO website:

1. Certificate of Incorporation: To prove your company is legally registered in Kenya.
2. Official CR12 Form: Issued by the Registrar of Companies, it confirms the current directors and shareholders.
3. Beneficial ownership form (BOF): it lists the ultimate owner of the company
4. KRA Documents:

• A valid KRA PIN – Proof that the company pays its taxes.
• Tax Compliance Certificate (TCC) – proof that the company is in good standing with KRA

5. Kenyan IDs or Passports: Clear copies for all listed directors and shareholders.
6. Special Licenses:

• This depends with the sector of operations eg: construction or energy, licensing body is NCA & EPRA).
• People living with disabilities applicants must also attach their NCPWD certificate.

Here is why trying to hide foreign involvement fails:

1. Strict Ownership Thresholds: Under Kenyan Public Procurement regulations, to qualify for AGPO as a youth-, women-, or PWD-owned enterprise, at least 70% of the company’s membership/shareholders must explicitly belong to the targeted demographic (e.g., Kenyan youth aged 35 and below, women, or persons with disabilities). A foreigner does not fit these statutory definitions.
2. Leadership and Control Mandates: Using silent structures or nominee setups to bypass citizen rules goes against procurement laws and will result in a rejected application during CR12 and beneficial ownership reviews.
3. Beneficial Ownership Disclosures (CR12): During the AGPO application process, regulatory bodies scrutinize the official company registration documents, including the CR12 and KRA tax profiles. Discrepancies between nominal leadership and actual beneficial ownership can lead to rejection or legal penalties for misrepresentation.

Talk to Kenbiz Registrars at info@kenbizregistrars.com today to check if your company qualifies for AGPO before you apply.