Can Widows Inherit from Their Parents-In-Law? in kenya

Can Widows Inherit from Their Parents-In-Law? in kenya

Following our recent publication, WKA Newsletter Edition #10 ‘Divorce by Mutual Consent in Kenya – Marriage (Amendment) Bill, 2023,’ we received a flurry of questions from you, our esteemed readers. One of the most common questions was, ‘Can a widow inherit from her parents-in-law?’ We found it important to address this pertinent issue.

In Kenya, there are two forms of succession: testate and intestate succession.

Testate Succession

Testate succession occurs when a person makes arrangements to ensure that upon death, their property passes to the person of their choice. These arrangements are made through a valid and enforceable will.

Intestate Succession

Intestate succession occurs under the following situations as provided under Section 34 of the Law of Succession Act:

  1. A person dies without making a will.
  2. Upon their death, the person’s will is invalidated or revoked.
  3. The person fails to revive their earlier revoked will or make another will.

In most instances, a majority of Kenyans are not keen to write their wills, and hence they die intestate. This is evidenced by the large number of succession cases in courts where family members fight over inheritance. These cases drag on for years before the deceased person’s property is finally allocated to their rightful dependents.

Unfortunately, the most affected dependents are widows (mothers) who have to cater for their children’s needs while battling their in-laws in court to get a share of their spouse’s estate.

Recent Court Ruling

Recently, Justice William Musyoka tackled this issue in the case of Re Estate of Francis Andachila Luta (Deceased) (Succession Cause 875 of 2012) [2022], where the High Court declared that daughters-in-law are not entitled to a portion of their deceased parents-in-law’s estate in cases of intestacy, whether under the Law of Succession Act or customary law. The Honorable Justice stated:

“The protestor is not a child of the deceased. She is, therefore, not entitled to anything out of the estate of the deceased herein. She is a daughter-in-law of the deceased, as she was married to his late son, Henry Lisansa. She has not come out clearly to say who she represents in these proceedings, whether it is her children, the grandchildren of the deceased, or whether she represents the estate of her late husband, Henry Lisansa. She cannot speak for their children, because the said children are entitled to direct access to the estate, vide section 41 of the Law of Succession Act. If she purports to be pursuing the interest due to her late husband, then she will require to take out letters of administration in the estate of her late husband, in order to have authority to claim his stake in the estate…”

This means that if you are a married woman and your husband passes on, you cannot inherit from your parents-in-law if they die intestate. As a daughter-in-law, you will not be considered a dependent within the meaning of Section 29 of the Law of Succession Act. Note that these provisions also apply to widowers.

Rights of a Surviving Spouse in Intestacy

A surviving spouse is entitled to:

  1. A life interest on the whole of the residue of the net estate. The ultimate destination of this property is to the deceased’s children.
  2. The life interest of the surviving widow terminates upon her remarriage.

However, the case of Ripples International v Attorney General & another; FIDA (Interested Party) (Constitutional Petition E017 of 2021) [2022] introduced new developments in the interpretation of Sections 35, 36, and 39 of the Law of Succession Act. The Court declared Sections 35(1)(b), 36(1)(b), and 39(1)(a)(b) unconstitutional on grounds of gender inequality and must be interpreted in a manner that gives effect to the equality of women and men. This means that if a widower remarries, his life interest will also terminate just like that of a widow who remarries.

We hope this information helps answer your questions and understand the interesting developments in the Law of Succession Act, Cap 160. Please note that the contents of this newsletter are intended to provide a general guide to the subject matter and should not be relied upon without legal advice.

For further information or legal assistance on compliance or any other legal issue, kindly contact us at info@wka.co.ke, visit reintech.co.ke/, or call +254 798 03 580. Our Nairobi Hub is located at Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

Divorce by Mutual Consent in Kenya

Divorce by Mutual Consent in Kenya – Marriage (Amendment) Bill, 2023

The National Assembly of Kenya introduced the Marriage (Amendment) Bill on June 27, 2023, aiming to amend the Marriage Act of 2014 (Marriage Act, 2014) to facilitate divorce by mutual consent and related purposes.

The current Marriage Act, 2014 lacks a legal framework for couples to voluntarily dissolve their marriage without resorting to court orders initiated by one party. Section 66 of the Marriage Act, 2014 outlines the separation process, which often leads to conflicts and hostile interactions between spouses.

The Amendment Bill addresses this issue by allowing spouses to mutually agree to divorce, promoting an amicable, straightforward, and cost-effective process.

Key Amendments Proposed:

  1. Reduction of Waiting Period: The proposed amendment reduces the waiting period for divorce under Section 66(1) from 3 years to a minimum of 1 year after the marriage celebration.
  2. Introduction of Section 75A: A new section, 75A, is introduced, enabling parties to jointly petition the court for divorce by mutual consent, provided certain conditions are met. These include mutual separation for at least one year, agreement to dissolve the marriage, and presentation of the petition after at least one year of marriage celebration.

Legal Background:

The constitutionality of Section 66(1) of the Marriage Act was challenged in the case of Tukero Ole Kina v Attorney General & Another (2019), where the court declared it unconstitutional due to its disproportionate effect. This decision was upheld by the Court of Appeal in National Assembly of Kenya v Kina & another (2022), suspending its effect for 3 years to allow necessary parliamentary amendments.

Current Status:

As of the date of our WKA Advocates Newsletter, Section 66(1) of the Marriage Act, 2014 remains in force pending parliamentary amendments. The Marriage (Amendment) Bill represents a positive step towards implementing the court’s decision.

Conclusion:

The proposed amendments aim to simplify and expedite the divorce process for mutually consenting couples, aligning Kenyan law with evolving societal needs and expectations.

We trust this information provides clarity on the key provisions of the Marriage (Amendment) Bill 2023. Please note that this newsletter serves as a general guide and should not be relied upon without legal advice.

For further information or legal assistance on any legal issue, please contact us at info@wka.co.ke, visit reintech.co.ke/, or call +254 798 03 580. Our Nairobi Hub is located at Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

Authors:

  • William Karoki, Founding Partner
  • Florence Mwende, Associate

Kenya: President Signs the Climate Change (Amendment) Bill 2023 Ahead of International Climate Summit

Kenya: President Signs the Climate Change (Amendment) Bill 2023 Ahead of International Climate Summit

The President of Kenya has signed the Climate Change (Amendment) Bill 2023 following its approval by the Senate. This Bill aims to amend the Climate Change Act of 2016 to regulate carbon markets, an area not addressed in the current Act.

The Bill aligns with the Paris Agreement, which Kenya ratified and became a party to on December 28, 2016. The Paris Agreement encourages parties to raise their mitigation ambition through carbon markets and non-market approaches.

Key Aspects of the Carbon Market Regulation

  • Carbon Market Mechanism: The carbon market enables public and private entities to transfer and transact emission reduction units, mitigation outcomes, or offsets generated through carbon initiatives, programs, and projects. This is subject to compliance with national and international laws.
  • Usage of Carbon Credits: Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.

The Presidential assent to the Bill comes days ahead of the African Climate Change Summit (ACS) 2023 and Africa Climate Week, scheduled from September 4 to 8, 2023, in Nairobi. This international event has garnered significant attention as climate change is a pressing global challenge.

We will attend the African Climate Change Summit (ACS) 2023 and keep you updated on the developments.

Conclusion

We hope this information helps in understanding the main objective of the Climate Change (Amendment) Bill 2023. Please note that the contents of this newsletter are intended to provide a general guide to the subject matter and should not be relied upon without legal advice.

For further information or legal assistance on compliance or any other legal issue, contact us at info@wka.co.ke, visit reintech.co.ke/, or call +254 798 03 580. Our Nairobi Hub is located at Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

Authors:

  • William Karoki, Founding Partner
  • Florence Mwende, Lawyer
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Immigration Law Firm in Kenya

Immigration Law Firm in Kenya

Navigating the complex landscape of immigration law can be challenging, but WKA Advocates is here to simplify the process. As a leading business and immigration law firm in Kenya, we specialize in providing comprehensive and expert advice across all aspects of immigration law. Whether you are seeking visas, temporary residence, work permits, or guidance on citizenship status, our experienced team has the knowledge and resources to assist you.

Our Comprehensive Immigration Services

We offer a full suite of immigration services tailored to meet the diverse needs of individuals, families, and corporations, including:

  1. Visa Applications: Assistance with various visa types, including tourist, student, work, and business visas.
  2. Temporary Residence Permits: Support for obtaining permits for study, work, or business purposes.
  3. Residence Permits: Guidance on securing long-term residence in Kenya.
  4. Citizenship Status Determination: Expert assistance in determining citizenship status and navigating the application process.
  5. Criminal Offences Representation: Legal representation for clients facing criminal charges related to Kenyan immigration laws.
Key Legal Services in Immigration Law

At WKA Advocates, we offer specialized services to address the full spectrum of immigration needs:

  • Advisory on Immigration Legislation: Comprehensive advice on Kenya’s Citizenship and Immigration Act of 2011, the Refugees Act of 2006, and other relevant laws, regulations, policies, and case law.
  • Formulation of Immigration Strategies: Tailored strategies for individuals and corporations to achieve their immigration goals.
  • Visa Application Preparation and Filing: Expert guidance in preparing and filing all types of visa applications.
  • Administrative Reviews and Appeals: Representation in administrative reviews and appeals at all levels.
  • Ministerial Waivers and Exemptions: Assistance with applications for regulatory waivers and exemptions.
  • Permanent Residence Applications: Guidance and support in proving permanent residence.
  • Deportation and Legal Representation: Expert legal representation in cases involving deportation, investigations, and arrests.

Why Choose WKA Advocates?

Our clients often share a common concern regarding the immigration status of their employees, experts, and their families. With over 15 years of experience, WKA Advocates is committed to providing personalized and effective solutions to meet your immigration needs. We are dedicated to ensuring our clients receive the best possible outcome, backed by our extensive legal expertise and commitment to excellence.

Contact Us

Are you migrating to Kenya for work, business, education, or relocation? Let WKA Advocates guide you through the immigration process with ease. Contact us today to discuss your legal needs and how we can assist you in successfully navigating the complexities of immigration law in Kenya.

Kenya: President Signs the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act 2023

Kenya: President Signs the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act 2023

In a significant move to enhance financial security and combat illicit activities, the President of Kenya officially signed into law the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act 2023 on September 1, 2023. This Amendment Act underscores Kenya’s commitment to strengthening its financial regulatory framework, fostering international cooperation, and aligning with global standards in the fight against money laundering, terrorism financing, and related illicit financial activities.

Prior to the enactment of the Amendment Act, the Law Society of Kenya (LSK) sought a court repeal of amendments compelling lawyers to disclose suspicious financial deals involving their clients. Consequently, the LSK agreed with the State to be designated as a self-regulating body in line with the Financial Action Task Force (FATF) standards, protecting client-attorney privileges.

Key Highlights of the Amendment Act

Beneficial Ownership

Limited Liability Partnership Act, 2011 (No. 42 of 2011):

  • Definition: The Amendment Act defines a Beneficial Owner as “the natural person who ultimately owns or controls a legal person or arrangement or the natural person on whose behalf a transaction is conducted, including those who exercise ultimate effective control over a legal person or arrangement.”
  • Register Requirements: Section 31B requires every limited liability partnership (LLP) to maintain a register of its beneficial owners and lodge a copy with the Registrar, both for proposed LLPs and existing LLPs within 60 days of the section coming into force.
  • Update and Record Maintenance: LLPs must update the Registrar with any amendments to the register within 14 days and keep records for at least 10 years.
  • Penalties: Penalties range from KES 100 for each day of default to a maximum of KES 500,000. The Registrar may also issue directives for compliance.

Foreign Limited Liability Partnership:

Section 34B(1)(b)(iv) mandates that applicants for foreign LLP registration submit a notarized copy of a list of beneficial owners and their particulars, along with other requirements.

Companies Act, 2015 (No. 17 of 2015):

  • Register Requirements: Section 16A requires applicants for company registration to ensure compliance with beneficial ownership particulars. Section 93A mandates every company to maintain a register of its beneficial owners and lodge a copy with the Registrar, both for proposed and existing companies within specified time frames.
  • Update and Record Maintenance: Companies must update the Registrar with any amendments within 14 days (30 days for public listed companies) and keep records for at least 10 years.
  • Penalties: Similar to LLPs, penalties range from KES 100 per day of default to a maximum of KES 500,000, with additional directives for compliance.

Additional Highlights of the Amendment Act

  1. Consensual Extradition: Fugitive criminals can now consent to extradition without formal proceedings, facilitated through Mutual Legal Assistance, streamlining international cooperation in combating cross-border crimes, including terrorism.
  2. Enhanced Regulatory Authority: The Capital Markets Authority (CMA) and Insurance Regulatory Authority (IRA) have expanded powers to ensure licensee compliance with anti-money laundering and terrorism financing laws.
  3. Operational Independence for the Financial Reporting Centre (FRC): The FRC gains operational independence, exempting it from the definition of a State Corporation, to strengthen its capacity to combat money laundering.
  4. Strengthened Reporting Obligations: Reporting entities must promptly report suspicious transactions to the FRC, which will analyze these reports and coordinate with law enforcement agencies for appropriate action.
  5. Central Bank Supervision: The Central Bank of Kenya (CBK) will oversee financial institutions and agents of reporting institutions to ensure compliance with anti-money laundering regulations.
  6. Expanded Scope and Coverage: The Act broadens the definition of money laundering offenses to include proceeds from domestic and international criminal activities, terrorism financing, and corruption, addressing emerging threats in digital and cryptocurrency spaces.
  7. Increased Penalties and Deterrents: The amendments introduce more severe penalties, including higher fines and extended prison terms, to deter illicit financial activities.
  8. Enhanced Customer Due Diligence: Financial institutions and designated non-financial businesses must conduct thorough customer due diligence according to Know Your Customer (KYC) standards, promoting transparency.
  9. Harmonization with FATF Standards: The legislation aligns Kenya’s licensing regime with FATF standards, establishing global standards to combat money laundering, terrorism financing, and financing of weapons of mass destruction.

Conclusion

We hope this information is helpful in understanding the key benefits of the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act 2023. Please note that this newsletter provides a general guide and should not be relied upon without legal advice.

For further information or legal assistance on compliance or any other legal issue, contact us at info@wka.co.ke, visit reintech.co.ke/, or call +254 798 03 580. Our Nairobi Hub is located at Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

Authors:

  • William Karoki, Founding Partner
  • Florence Mwende, Lawyer

Kenya Cabinet Approves Splitting of NHIF (National Health Insurance Fund)

Kenya Cabinet Approves Splitting of NHIF (National Health Insurance Fund)

In honor of the President’s pledge to accelerate Kenya’s attainment of Universal Health Coverage (UHC), the Cabinet has considered and approved four crucial bills that promote healthcare, to be transmitted to Parliament. These are:

  1. The Primary HealthCare Bill, 2023
  2. The Digital Health Bill, 2023
  3. The Facility Improvement Financing Bill, 2023
  4. The Social Health Insurance Bill, 2023

These four bills usher in a new paradigm in the legal and institutional framework for healthcare in Kenya by repealing the current NHIF and establishing the following three funds in its place:

  • Primary Healthcare Fund
  • Social Health Insurance Fund
  • Emergency, Chronic, and Critical Illness Fund

The NHIF has experienced a steady decline in fulfilling its mandate in recent years. The Kenya Association of Private Hospitals (KAPH) had even banned the use of the NHIF card due to nonpayment by the insurer. This situation left many Kenyans in distress because the NHIF is the most popular health insurance in the country and is relied upon by the majority. Patients have had to pay in cash or go untreated. While public hospitals still accept the NHIF card as a mode of payment, the insurer only covers limited services, prompting patients to seek assistance from private hospitals. The Cabinet’s decision to repeal the current NHIF is a significant relief for Kenyans.

We will be updating the public on the provisions of these bills as they are published. We hope this information helps in understanding the current developments regarding the repeal of the National Health Insurance Fund and the establishment of the Primary Healthcare Fund, Social Health Insurance Fund, and Emergency, Chronic, and Critical Illness Fund.

Please note that the contents of this newsletter are intended to provide a general guide to the subject matter. It should not be relied upon without legal advice on its contents.

For further information or legal assistance on compliance or any other legal issue, please contact us at info@wka.co.ke, reintech.co.ke/, +254 798 03 580, Nairobi Hub: Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

Authors:

  • Founding Partner: William Karoki
  • Lawyer: Florence Mwende

A NEW DAWN FOR FOREIGN INVESTORS IN THE ICT SECTOR IN KENYA

A NEW DAWN FOR FOREIGN INVESTORS IN THE ICT SECTOR IN KENYA

The Information and Communications Technology (ICT) Sector Policy Guidelines 2020 in Kenya introduced a requirement for foreign firms licensed to provide telecommunications services to have at least 30% of their shares held by locals within a three-year grace period.

The rationale behind the 30% local shareholding requirement was to ensure national security, attract foreign investment, and create employment for Kenyans. The policy aimed to equip Kenyans with sufficient knowledge to help local ICT firms flourish. However, it did not achieve its mandate as the number of foreign investors in the ICT sector declined significantly. Foreign companies found the policy prohibitive and were reluctant to find local partners, making it harder for existing startups to increase their stake beyond the 30% equity threshold.

Consequently, President William Ruto proposed the removal of the mandatory local shareholding requirement as part of the fiscal policy changes expected in the Finance Bill 2023 and the Budget Policy Statement. This proposal was made during the American Chamber of Commerce (AmCHAM) Summit held on March 29th and 30th, 2023, in Nairobi. In a Cabinet dispatch dated July 18th, 2023, the Kenyan Cabinet approved the President’s proposal. The dispatch stated that the rationale for scrapping the 30% requirement is “part of the reforms to enhance Kenya’s overall ease of doing business index while also fortifying legislative consistency in the governance framework for foreign investments. The policy shift is geared towards facilitating technology and knowledge transfer as well as aiding the expansion of the digital economy by positioning the country for increased foreign investments in technology as envisioned in the Administration’s Bottom-Up Economic Transformation Agenda (BETA).”

Following Kenya’s Cabinet approval of abolishing the mandatory local shareholding requirement in the ICT sector, Elon Musk launched his satellite Internet firm, Starlink, in Kenya on July 19th, 2023. Starlink partnered with a local internet company, Karibu Connect, as its first authorized distributor in Kenya. The launch made Kenya the sixth African country to be explored for business by Starlink after Nigeria, Mozambique, Mauritius, Rwanda, and Comoros. Shortly after the launch of Starlink, United States (US) Ambassador Meg Whitman attended the 8th Devolution Conference in Eldoret. In her address, she strongly pitched Kenya as Africa’s best investment destination for the international community. The envoy did not hide her enthusiasm about Kenya’s investment prospects and climate, describing the country as the region’s ICT Hub and gateway to East Africa.

Local Shareholding Requirements in Other Sectors:

  • Engineering: The Engineering Technology Act No. 23 of 2016 requires a foreign firm to be incorporated in Kenya and have a minimum local shareholding of 51% to be registered as an engineering consulting firm.
  • Aviation: Regulations 5 and 12 of the Civil Aviation (Licensing) require a prospective licensee to be a Kenyan citizen or, if a body corporate or a partnership, to have at least 51% of its voting rights held by the Kenyan government, a Kenyan citizen, or both.
  • Private Security: The Private Security Regulation Act, 2016 mandates a prospective license holder to have a minimum of 25% local shareholding.
  • Pension Funds/Schemes: The Retirement Benefits Act, 1997 requires at least 60% of the paid-up share capital of a scheme administrator to be held by Kenyan citizens unless the administrator is a bank or an insurance company.
  • Shipping: The Merchant Shipping (Maritime Service Providers) Regulations, 2011 require an applicant for a license to be a Kenyan citizen or, if a body corporate, to have at least 51% of its share capital held by Kenyan citizens.
  • Insurance: The Insurance Act (CAP 487) stipulates that not less than one-third of the paid-up share capital of an insurance company must be owned by citizens of the states forming the East African Community or wholly owned by the Kenyan government.
  • Mining: Under the previous Mining Act, a mining license applicant needed 35% local shareholding for a mineral right. The 2016 Mining Act allows the Cabinet Secretary to set capital expenditure limits. If a licensee’s planned spending surpasses this limit, they must list 20% of equity on a local stock exchange within three years of production start. Small-scale operations tied to mineral rights are limited to Kenyan citizens or bodies corporate with 60% local shareholding.
  • Capital Markets: The Capital Markets (Foreign Investors) Regulations require every legal entity that offers securities to the public or a listed company to reserve at least 25% of its ordinary shares for investment by Kenyan citizens.
  • Financial Institutions: The Banking Act (CAP 488) also imposes specific local shareholding requirements.

We hope this information is helpful in understanding the 30% local shareholding requirement in the ICT sector and the effects of its abolishment in Kenya. Please note that the contents of this newsletter are intended to provide a general guide to the subject matter and should not be relied upon without legal advice on its contents.

For further information or legal assistance on compliance or any other legal issue, please contact us at info@wka.co.ke, reintech.co.ke/, +254 798 03 580, Nairobi Hub: Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

Authors:

  • Founding Partner: William Karoki
  • Lawyer: Florence Mwende