Kenya Investment Authority is working on proposals for a residency-by-investment programme that would grant long-term residency to foreign investors who commit substantial capital and create jobs, Invest Kenya chief executive John Mwendwa told Business Daily in a Thursday interview. The initiative revives a plan first floated in 2019 but never implemented, aimed at strengthening Nairobi's position as East Africa's investment hub. Kenya joins a growing list of countries competing for globally mobile investors with immigration incentives beyond tax breaks, a shift particularly relevant for venture capital firms and startup founders who require senior staff and entrepreneurs to spend years building businesses in target markets.
Invest Kenya Proposes Residency Programme for Capital Commitment
"We are exploring residency by investment," Mwendwa said in the Thursday interview. "Directionally, that's the way investors would like it." The agency has yet to determine investment thresholds or qualifying sectors. Mwendwa stated any programme would require legislation because immigration policy falls outside Invest Kenya's mandate. "We have to have parameters that make commercial sense," he said.
The proposal could prove attractive to venture capital firms and startup founders, who need senior investment staff and entrepreneurs to spend years building businesses in the markets where they invest. Unlike traditional foreign direct investment, venture capital relies heavily on local presence, with partners expected to sit on boards, recruit executives and work closely with portfolio companies.
Venture Capital Firms Navigate Current Permit Requirements
Kenya already hosts regional offices for several international venture capital firms—including Antler, Capria Ventures, Delta40, and Enza Capital—aided by one of Africa's largest startup ecosystems and a pipeline of fintech, climate and enterprise software companies. Investors currently navigate work permit renewals and immigration processes that can complicate long-term expansion.
Kenya currently requires foreign investors to obtain a Class G Investor Permit, available to those investing at least $100,000 in an active Kenyan enterprise, before becoming eligible to apply for citizenship after several years of residence. Permanent residency would offer a faster, more predictable route for investors seeking to establish long-term operations, potentially removing administrative burden and making Nairobi a more competitive base against rival investment hubs such as Cape Town, Kigali, and Mauritius.
South Africa and Mauritius Offer Comparative Investor Residency Routes
South Africa introduced its permanent residence route for investors under the Immigration Act in 2002, allowing foreigners investing at least R12 million ($729,000) to apply for residency. In 2020, Mauritius lowered the minimum investment required for residency from $500,000 to $375,000 to stimulate foreign investment following the pandemic.
Kenyan Startups Attracted $984 Million in 2025
Kenyan startups attracted $984 million in funding in 2025, the highest on the continent and about a third of all startup investment into Africa, driven largely by climate and energy technology deals. Kenya has retained its lead into the first half of 2026, remaining the continent's largest startup funding destination despite a broader slowdown in dealmaking.
FAQ
What is Kenya proposing for foreign investors?
Kenya Investment Authority is working on proposals for a residency-by-investment programme that would grant long-term residency to foreign investors who commit substantial capital and create jobs, as confirmed by Invest Kenya chief executive John Mwendwa in a Thursday interview with Business Daily.
What are the current investment requirements for foreign investors in Kenya?
Kenya currently requires foreign investors to obtain a Class G Investor Permit, available to those investing at least $100,000 in an active Kenyan enterprise, before becoming eligible to apply for citizenship after several years of residence.
How much funding did Kenyan startups attract in 2025?
Kenyan startups attracted $984 million in funding in 2025, the highest on the continent and about a third of all startup investment into Africa, driven largely by climate and energy technology deals.
