The State Law Office has laid down directives that will grant it access to collect contact and residential information of investors that hold more than 10% stake in companies.
This, in an effort to curb money laundering and use of appointee accounts that investors have been using to get around ownership limits in companies that have been listed under Nairobi Security Exchange (NSE)
The online portal that has been established at the Attorney General’s (AG) office will list ownership details in both listed and private companies.
Companies will now be required to fill out beneficial ownership registers while existing firms will be offered a deadline whereby their shareholder records will be updated in November.
Identities of secret shareholders who have more than 10% control in companies will also be revealed to the AG through the Registrar of Companies.
Names of the substantial shareholder, KRA pin, copies of National Identity card or passport, postal address, residential address, telephone contact and date when the investor became a beneficial owner are some of the details required to be filled during filing.
Failure to abide by the new rules will see the company facing a penalty of Ksh 50,000 of each day the rules are broken and Ksh 500,000 fine for failing to hand over the required details.
The move is set to avoid scrutiny by unmasking influential business men who hide their identities behind foundations, trusts and law firms.
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