Take a step into the realm where synergy meets opportunity, where the pulse of innovation beats with the rhythm of possibility. Welcome to Kenya’s dynamic business landscape, where mergers aren’t just transactions; they’re transformative journeys unlocking boundless potential for growth and economic vitality.
Kenya is set apart not just by the promise of mergers; it also possesses a robust legal and institutional framework meticulously crafted to ensure these business alliances flourish. Here, amidst the vibrant land of opportunity, our legal infrastructure stands as a beacon of assurance, guiding businesses through every step of their transformative journey with clarity, confidence, and unparalleled expertise.
At JMK Partners Advocates LLP, we acknowledge the power of mergers to redefine industries, reshape economies, and unlock boundless opportunities for our clients. With our deep understanding of Kenya’s legal landscape and unwavering commitment to excellence, we stand ready to be your trusted partner in navigating the complexities of mergers, ensuring your success story is written with precision, passion, and unparalleled proficiency.
The Competition Authority of Kenya is a watchdog of fair competition in the business landscape. The Authority plays a vital role in ensuring that mergers are conducted in accordance with the law with a view to safeguarding integrity of the marketplace. The Competition Authority of Kenya authorizes proposed mergers and acquisitions depending on whether they are notifiable to the Authority or not. Below is a breakdown of merger transactions notifiable to the authority:
- Where the undertakings have a minimum combined turnover or assets (whichever is higher) of one billion shillings and the turnover or assets (whichever is higher) of the target undertaking is above five hundred million shillings
- If the acquiring company’s turnover or assets exceed 10 billion shillings and if the merging parties operate in the same market or can vertically integrate, the merger may be subject to notification to the COMESA Competition Commission unless it meets the COMESA Competition Commission Merger Notification Thresholds
- In the carbon based mineral sector, if the value of the reserves, the rights and the associated assets to be held as a result of the merger exceeds ten billion shillings;
- Where the undertakings operate in the COMESA the combined turnover or assets (whichever is higher) of the merging parties does not exceed five hundred million shillings and two-thirds or more of their turnover or assets (whichever is higher) is generated or located in Kenya.
The regulatory approval doesn’t stop there. Sector-specific regulators also have a say in the matter, ensuring compliance with industry-specific laws and regulations:
- The Cabinet Secretary of Finance oversees mergers involving banking institutions, with a keen eye on transactions exceeding 5% share capital transfer.
- The Capital Markets Authority weighs in on mergers and takeovers involving listed companies, ensuring alignment with capital market regulations.
- The Insurance Regulatory Authority provides oversight for insurers looking to amalgamate or transfer insurance business.
And in the event of disputes or challenges to regulatory decisions, the Competitions Tribunal stands as the impartial arbiter, offering a platform for recourse and ensuring fairness in the regulatory process.
At JMK Partners Advocates LLP, we understand that mergers are strategic moves that shape the future of businesses. With our guidance, your merger journey will be navigated with precision and confidence, ensuring compliance with regulatory requirements while unlocking new avenues for growth.
This article is for informational purposes only and should not be taken to be or construed as a legal opinion. For more insights, please do not hesitate to contact info@jmkadvocates.co.ke