As the government implements a 30 percent local shareholding rule for companies in the ICT sector, it is important that enforcement and compliance are transparent.
The policy, published in 2020, is designed to ensure that Kenyans benefit from companies doing business in the country.
There should be transparency to boost compliance among the targeted companies and also ensure that they are not pressured to sell or give shares to persons wielding influence whether political or otherwise.
It should be a requirement for companies to announce the Kenyan investors who have acquired the minority stakes.
The financial aspects of the transactions may be withheld.
Companies that get a waiver from the local ownership rules should also make such disclosures and the reasons they are not able or willing to comply.
One complaint, especially from large companies, is that it is difficult to get local investors willing to take the minority stakes.
Disclosing the identities of participating investors or reasons for exemption will help bring more transparency and accountability to the process which so far is in the hands of regulators and civil servants.
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Note: The results are not exact but very close to the actual.
