The Class G Investor Permit – An Immigration Opportunity to Attract Foreign Direct Investment

The Class G Investor Permit – An Immigration Opportunity to Attract Foreign Direct Investment

In Immigration, International Law

By Matthew Magare

Citizenship through investment remains an attractive option to attract foreign direct investment into a country. The United States (EB-5 visa programme), Spain (Golden visa programme), Canada (The Federal Immigrant Investor Program), Thailand (“Elite” visa residency), Cyprus (Golden Visa) are just some of the international packages available to investors.

The overriding aspect of these investment programs is the requirement to make a minimum investment in the country. The investment can be in a specific business sector. The US EB -5 programme, for example, requires a minimum investment of USD 1.8 million over two years in a specified target employment area that the US government is looking to uplift. The investor is granted conditional residency for two years following the initial investment. After two years, the investor can apply to have the conditions removed and the residency made permanent, but only if the investment has resulted in the creation of a minimum of 10 jobs. In the case of the Cyprus Golden Visa program, the investor is required to purchase real estate worth at least € 2 million and make a €100,000 donation to the Cypriot Government Research and Development Fund and another €100,000 donation to the Cypriot Land Development Organization.

Similarly, The Kenya Citizenship and Immigration Act (the “Act “), and the Regulations under the Act provide for an investment permit known as a Class G Investment Permit.

A person eligible for a Class G permit is one who intends to engage, whether alone or in partnership, in a specific trade, business, consultancy or profession (other than a prescribed profession) in Kenya, and who—

(a) has obtained any licence, registration or other authority or permission that may be necessary for the purpose; and

(b) has in his own right and at his full and free disposition sufficient capital and other resources for the purpose; and

(c) whose engagement in trade, business, consultancy or profession will be of benefit to Kenya.

There is a requirement of documentary proof of capital to be invested at least USD 100,000. The investment permit is ordinarily issued for two years. The applicant is required to provide evidence of the investment to renew the permit. There is no direct requirement to show a specific outcome, such as employment created or the impact of the investment.

Proposed Reforms

The Class G permit provides a valuable opportunity for Kenya to attract foreign direct investment. Reforms include providing a direct path to permanent residency to upstanding applicants with no criminal record whose initial investment has achieved the desired impact. Reforms can also require applicants to direct their investment to specific sectors of national interest. For example, one of the options for investment can require the purchase of property worth a specified minimum amount. This can be a catalyst to revive the struggling luxury and commercial real estate sector. Also, renewals can be scrutinised to show that not only was the investment made, but also a specific desired outcome was achieved, for example, the creation of permanent employment for a minimum number of Kenyans.