RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/KEN 
25 October 2004 
 (04-4508) 
Council for Trade in Services 
Special Session Original:   English 
 
 
KENYA  
 
Initial offer   
 
 
 The following initial offer has been r eceived from the delegation of Kenya on 
20 October 2004 with the request that it be circ ulated to Members of the Council for Trade in 
Services. 
 
_______________ 
   
 
   TN/S/O/KEN
 Page 3KENYA – INITIAL OFFER 
 
Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
I. HORIZONTAL COMMITMENTS 
 
 
 ALL SECTORS 
INCLUDED IN THIS SCHEDULE 
  
3) Commercial presence re quires that foreign 
service providers incorporate or establish the business locally 
  
  
 4) Unbound except for m easures concerning  the 
entry and temporary stay of natural persons 
employed in management and expert jobs for 
the implementation of foreign investment.  
 
 The employment of foreign n atural persons 
for the implementation of foreign investment 
shall be agreed upon by the contracting parties 
and approved by Government  
 
 Unbound, except for: 
 Intra-corporate Transferees: Personnel 
sent from the headquarters in the home country to temporary work in a subsidiary 
in Kenya. Each company may be allowed to 
bring three expatriates.  They must have at least two-year prior employment in the 
home country. Subject to clear evidence 
that the skills are not available in Kenya. Allowed to stay for two years that can be 
extended. 
 Business Visitors: Personnel employed by a 
service company abroad  that enters Kenya 
to conduct business meetings or setting up establishment. Cannot  be engaged in the 
direct provision of services. Entry allowed 
for up to 90 days in a calendar year. 
 4)  None for intra-corporate transferees and 
business visitors   TN/S/O/KEN 
Page 4 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
II. SECTOR SPECIFIC COMMITMENTS 
 
1. BUSINESS SERVICES 
A. Professional Services     
(d) Architectural services 
 (CPC 8671) 1) Unbound 
2)  None 
3)  Joint ventures with a maximum of  40% 
foreign capital participation 
4) Unbound expect as indicated in horizontal 
commitments 
 1) Unbound 
2) None 
3) Unbound  
4) Unbound except as indicated in horizontal 
commitments  
2. COMMUNICATION 
SERVICES 
    
C. Telecommunication  
 Services  (excludes video 
and audio broadcast 
services) 
    
(a) Voice telephone services: 
 
 Limited to international 
home country direct 
services  
 1) Restricted to service suppliers operating direct 
voice communication routes 
2) Unbound 
3) Unbound 
4) Unbound except as indicated in the horizontal 
section 
 1) None 
 
2) Unbound 
3) Unbound 
4) Unbound     TN/S/O/KEN
 Page 5Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 For public use : 
 (a) Voice telephone service  
 (CPC 7521) 
(d) Telex services  (CPC 7523**) 
(e) Telgraph services 
 (CPC 7522) (f)  Facsimile service 
 (CPC 7521**, CPC 
 7529**) 
(g) Private leased circuit 
services (CPC 7522**, 
CPC 7523**) 
 1) None, except International call-back services 
are not permitted. 
2) None, except International call-back services 
are not permitted. 
3) Until 2003, monopoly on supply of services in 
Nairobi as well as on supply of International 
gateway facilities services, and resale in 
monopoly areas only with permission of supplier of underlying services and facilities.  
Foreign investment is limited to 30 per cent 
maximum. 
4) Unbound except as indicated in the horizontal 
section 1) None 
 2) None 
 
3) None  
 
  
 
 4) Unbound, except as indicated in horizontal 
section Kenya undertakes the  
obligation contained in the  reference paper hereto. 
 
 For public use : 
 
(b) Packet-switched data 
transmission services 
 (CPC 7523**) 
(c) Circuit-switched data 
transmission services 
 (CPC 7523**)   
 
1) None 2) None 
3) None, except Foreign investment is limited to 
30 per cent maximum. 
4) Unbound except as indicated in the horizontal 
section 
  
 
1) None 2) None 
3) None 
 
4) Unbound, except as indicated in the horizontal 
section 
  
  TN/S/O/KEN 
Page 6 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 For non-public use : 
 Services supplied to closed 
users group 
 
(a) Voice telephone services  (CPC 7521) 
(b) Packet-switched data 
transmission services 
 (CPC 7523**) 
(c) Circuit-switched data 
transmission services 
 (CPC 7523**) 
(d) Telex services 
 (CPC 7523**) (e) Telegraph services 
 (CPC 7522) 
(f) Facsimile services   (CPC 7521**, CPC 
7529**) 
 1) None, except through the network of Telkom 
Kenya Ltd.  or monopoly.  International call-back services are not permitted. 
2) None, except through the network of licenced 
telecom operator.  International call-back services are not permitted.  
3) Only over facilities of licenced operators 
breakout and Resale of excess capacity are not permitted.  Foreign investment limited to a 
maximum of 30 per cent. 
4) Unbound, except as indicated in the horizontal  section 1) None 
  
2) None 
  
3) None 
  
 
4) Unbound, except as indicated in the horizontal  section  
 Value added services : 
 
(h) Electronic mail  (CPC 7523**) 
(i) Voice mail (CPC 7523**) 
(j) On-line information and 
data base retrieval (CPC 
7523**) 
(k) Electronic data interchange  (CPC 7523**) 
  
 
1) None 2) None 
3) Only over facilities of licenced network 
operators.  Foreign investment limited to maximum of 30 per cent. 
4) Unbound, except as indicated in the horizontal 
section 
  
 
1) None 2) None 
3) None 
  
4) Unbound, except as indicated in the horizontal 
section 
  
   TN/S/O/KEN
 Page 7Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(l) Enhanced/value-added 
facsimile services, incl. Store and forward, store 
and retrieve 
 (CPC 7523**) (m) Code and protocol 
conversion 
(n) On-line information and/or 
data processing (including 
transaction processing) 
(CPC 843**) 
    
(o) Other: 
 
 Internet and internet access 
services 
  
 
1) None 2) None 
3) Only over facilities of licenced network 
operators.  Foreign investment limited to maximum 30 per cent. 
4) Unbound, except as indicated in the horizontal 
section  
 
1) None 2) None 
3) None 
  
4) Unbound, except as indicated in the horizontal 
section 
  
 
 Satellite based  
 Mobile Services 
- Cellular/mobile telephone 
- Mobile data services - Personal communications 
services 
- Paging 1) None, except as provided for under GMPCS 
MOU. 
2) None, except as provided for under GMPCS 
MOU. 
3) None, except foreign investment is limited to 
30 per cent maximum 
4) Unbound, except as indicated in the horizontal 
section 
 1) None 
 
2) None 
 3) None 
 
4) Unbound, except as indicated in the horizontal 
section  
  TN/S/O/KEN 
Page 8 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Terrestrial based  
 Mobile Services - Cellular/mobile telephone 
services 
- Mobile data services - Personal communications 
services 
- Paging  1) Only through the network of Telkom Kenya 
Ltd. and subsequent licenced International gateway operator.  International call-back 
services are not permitted. 
2) Only through the network of Telkom Kenya 
Ltd. and subsequent licenced International 
gateway operator.  International call-back 
services are not permitted. 
3) Other than paging services and PCS, initially 
the services will be provided by Telkom 
Kenya Ltd.  A second operator is to be licenced within one year. 
4) Unbound, except as indicated in the horizontal 
section 
 1) None 
  
 
2) None  
 
 3) None 
 
  
4) Unbound, except as indicated in the horizontal 
section  
 Fixed satellite services (for 
public use) 
 1) Only through the network of Telkom Kenya  
and subsequent licenced international gateway 
operator. 
2) Only through the network of Telkom Kenya  
and subsequent licenced international gateway 
operator. 
3) Foreign investment is limited to maximum  
 30 %. 4) Unbound, except as indicated in the horizontal 
section 1) None 
 
 2) None 
 
 
3) None 
 4) Unbound, except as indicated in the horizontal 
section 
  
 Vending of 
telecommunications 
terminal equipment.1 
 1) None 
2) None 
3) None 4) Unbound except as indicated in the horizontal 
section 1) None 
2) None 
3) None 4) Unbound 
  
 Installation and 
maintenance of 
telecommunications terminal equipment
1 
 1) Unbound∗ 
2) None 
3) None 
4) Unbound except as indicated in the horizontal 
section 1) Unbound* 
2) None 
3) None 4) Unbound 
  
                                                           
 1 Information provided for the purposes of transparency :  Subject to type approv al and licensing procedures. 
 ∗ Unbound due to lack of technical feasibility    TN/S/O/KEN
 Page 9Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
D. Audiovisual Services  
    
(a) Motion picture and video 
tape production services 
(excluding distribution 
services) 
 1) None 
2) None 
3) Unbound 
4) Unbound except as indicated in the horizontal 
section 
 1) None 
2) None 
3) Unbound 
4) Unbound   
(b) Motion picture projection 
services 
 1) Unbound* 
2) None 
3) None 
4) Unbound except as indicated in the horizontal 
section 
 1) Unbound* 
2) None 
3) None 
4) Unbound   
7. FINANCIAL SERVICES 
     
A. Banking and other 
Financial Services  
 (Excluding insurance) 
    
(a) Acceptance of deposits and 
other repayable funds from 
the public 1) None 
2) None 
3) Only institutions approved as banks under the 
Banking Act 
4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) Unbound 
2) None 
3) Unbound  
4) Unbound, except as indicated in the Horizontal 
Commitments  
(b) Lending of all types, 
including consumer credit, mortgage credit, factoring 
and financing of 
commercial transaction 1) None 
2) None 3) None 
4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) None 
2) None 3) Unbound 
4) Unbound, except as indicated in the Horizontal 
Commitments   TN/S/O/KEN 
Page 10 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(c) All payments and money 
transmission services 1) None 
2) None 3) None 
4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) None 
2) None 3) Unbound 
4) Unbound, except as indicated in the Horizontal 
Commitments  
(d) Guarantees and 
commitments 1) None 
2) None 
3) None 4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) Unbound 
2) None 
3) Unbound 4) Unbound, except as indicated in the Horizontal 
Commitments  
(e) Participation in issues of all 
kinds of securities and 
provision of services related to such issues 
except underwriting 1) Securities issued in a foreign jurisdiction 
cannot be offered or traded in the Kenyan 
market. 
2) None 
3) Foreign portfolio investors can hold up to 40% 
of the shareholding of a locally listed company.  They can also take up to 40% of 
any additional public offering by a foreign 
convened listed company. 
4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) Unbound 
 
 2) None 
3) Unbound 
  
 
 
4) Unbound, except as indicated in the Horizontal 
Commitments  
(f) Asset management except 
pension fund management 1) None 
2) None 3) 30% of paid up capital must be held by 
Kenyan nationals. 
4) Unbound, except as indicated in the 
Horizontal Commitments 1) Unbound 
2) None 3) Unbound 
 
4) Unbound, except as indicated in the Horizontal 
Commitments 
  
(g) Advisory and other 
auxiliary financial services 1) None 
2) None 
3) None 
4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) None 
2) None 
3) Unbound 
4) Unbound, except as indicated in the Horizontal 
Commitments    TN/S/O/KEN
 Page 11Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
B. Insurance  
    
(a) Life Insurance 1) Unbound 
2) Unbound 
3) One third of the paid up capital must be 
owned by Kenyan nationals. 
4) Unbound, except as indicated in the 
Horizontal Commitments 1) Unbound 
2) Unbound 
3) None 
 4) Unbound, except as indicated in the Horizontal 
Commitments 
  
(b) Non-life 1) Unbound, except for aviation, marine and 
engineering 
2) Unbound, except for aviation, marine and 
engineering 
3) None 
4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) Unbound 
 
2) Unbound  
3) Unbound 
4) Unbound, except as indicated in the Horizontal 
Commitments  
(c) Broking 1) Unbound 
2) Prior approval of the Commissioner of 
Insurance (C.O.I) is required to lace Kenyan 
business with an insurer not registered under 
the Kenya Insurance Act. 
3) 6 0% of the paid capital must be owned by 
Kenyan nationals.  50% of foreign 
participation in paid capital will be allowed 
from 2006. 
 4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) Unbound 
2) None 
 
 
 
3) None  
 
 4) Unbound, except as indicated in the Horizontal 
Commitments  
(d) Agency services 1) Unbound, except for re-insurance services. 
2) Unbound 
3) Agency services re stricted to Kenyan 
Nationals. 
4) Unbound, except as indicated in the 
Horizontal Commitments 1) None 
2) Unbound 
3) Unbound  
4) Unbound, except as indicated in the Horizontal 
Commitments 
   TN/S/O/KEN 
Page 12 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(d) Auxiliary Services, 
Assessors, Intermediaries and loss Adjustors 1) None 
2) None 3) None 
4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) None 
2) None 3) None 
4) Unbound, except as indicated in the Horizontal 
Commitments  
(f) Re-insurance and 
Retrocession 1) Mandatory cessions must be placed with – 
Kenya Re 25%; Zep Re 10% and Africa Re 
5%. Mandatory cessions must be placed 
with Kenya Re 18%, Zep Re 10%, Africa 
Re 5%. 
2) Mandatory cessions must be placed with – 
Kenya Re 25%; Zep Re 10% and Africa Re 
5%. 
3) Mandatory cessions must be placed with – 
Kenya Re 25%; Zep Re 10% and Africa Re 
5%. 
4) Unbound, except as indicated in the 
Horizontal Commitments 
 1) None 
 
  
 
2) None  
 
3) None  
 
4) Unbound, except as indicated in the Horizontal 
Commitments  
9. TOURISM AND 
TRAVEL-RELATED 
SERVICES 
    
A. Hotels and Restaurants 
(including catering)  
 1) Unbound* 
2) None 3) None 
4) Unbound except as indi cated in the  horizontal 
section 
 1) Unbound* 
2) None 3) None 
4) None, for those categories of persons referred to 
in the market access column of the horizontal section 
  
B. Travel Agencies and Tour 
Operators Services  
 1) None 
2) None 
3) None 
4) Unbound except as indi cated in the  horizontal 
section 
 1) None 
2) None 
3) None 
4) None, for those categories of persons referred to 
in the market access column of the horizontal 
section 
    TN/S/O/KEN
 Page 13Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
C. Tourist Guide Services  
 1) None 
2) None 3) None 
4) Unbound except as indi cated in the  horizontal 
section 
 1) None 
2) None 3) None 
4) None, for those categories of persons referred to 
in the market access column of the horizontal section  
 
11. TRANSPORT SERVICES  
    
A. Air Transport Services  
    
(a) Aircraft repair and 
maintenance services2 
 1) Unbound* 
2) None 3) Unbound 
4) Unbound except as indicated in the horizontal 
section 
 1) Unbound* 
2) None 3) Unbound 
4) Unbound 
  
(b) Selling and marketing of air 
transport services2 
 1) None 
2) None 3) Unbound, except for advertizing activities and 
the setting up of regional sales offices 
4) Unbound except as indicated in the horizontal 
section 
 1) None 
2) None 3) Unbound, except for the activities referred to in 
the market access column 
4) Unbound 
  
(c) Computer reservation 
system (CRS) services2 
 1) None 
2) None 
3) Unbound 4) Unbound except as indicated in the horizontal 
section 1) None 
2) None 
3) Unbound 4) Unbound 
  
F. Road Transport Services  
    
(a) Passenger transportation 
 1) None 
2) Unbound 3) Unbound 
4) Unbound except as indicated in the horizontal 
section 
 
 1) None 
2) None 3) Unbound 
4) None, for those categories of persons referred to 
in the market access column of the horizontal section 
  
                                                           
 2 As defined in paragraph 6 of the Annex on Air Transport Services.  TN/S/O/KEN 
Page 14 Modes of supply:  1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
(b) Freight transportation 
 1) None 
2) None 3) Unbound 
4) Unbound except as indicated in the horizontal 
section 
 1) None 
2) None 3) Unbound 
4) Unbound 
  
(c) Rental of commercial 
vehicles with operator 
 1) None 
2) None 
3) Unbound 4) Unbound except as indicated in the horizontal 
section 
 1) None 
2) None 
3) Unbound 4) Unbound 
  
(d) Maintenance and repair of 
road transport equipment 
 1) Unbound* 
2) None 
3) Unbound 4) Unbound except as indicated in the horizontal 
section 
 1) Unbound* 
2) None 
3) Unbound 4) Unbound 
  
(e) Supporting services for 
road transport services 
 1) None 
2) None 
3) Unbound 
4) Unbound except as indicated in the horizontal 
section 
 1) None 
2) None 
3) Unbound 
4) Unbound 
  
12. OTHER SERVICES NOT 
INCLUDED ELSEWHERE 
    
 Meteorogical data 
information 
 1) None 
2) None 
3) Unbound 
4) Unbound except as indicated in the horizontal 
section 
 1) None 
2) None 
3) Unbound 
4) None, with respect to the categories of persons 
referred to in the market access column of the 
horizontal section   TN/S/O/KEN 
 Page 15 
 
 
ADDITIONAL COMMITMENTS OF KENYA ON REGULATORY PRINCIPLES 
REFERENCE PAPER  
 
 
Scope  
  The following are definitions and principles on the regulatory framework for the basic telecommunications services.    
Definitions
 
  Users
 mean service consumers and service suppliers.   
  Essential facilities
 mean facilities of a public telecommunications transport network or service 
that: 
 
 (a) are exclusively or predominantly provided by a single or limited number of suppliers;  
  and   (b) cannot feasibly be economically or technically substituted in order to provide a  
  service. 
 
A major supplier
 is a supplier which has the ability to  materially affect the terms of 
participation (having regard to price and supply) in  the relevant market for basic telecommunications 
services as a result of: 
 
 (a) control over essential facilities;  or   (b) use of its position in the market.  
1. Competitive safeguards 
 
1.1 Prevention of anti-competitive practices in telecommunications  
Appropriate measures shall be maintained for th e purpose of preventing suppliers who, alone 
or together, are a major supplier from engaging  in or continuing anti-competitive practices. 
 
1.2 Safeguards  
The anti-competitive practices referred to above shall include in particular: 
  (a) engaging in anti-competitive cross-subsidization;   
 
 (b) using information obtained from comp etitors with anti-competitive results;  and 
  (c) not making available to other services suppliers on a timely basis technical 
 information about essential facilities and co mmercially relevant information which 
 are necessary for them to provide services.  
 TN/S/O/KEN 
Page 16 
 
 
2. Interconnection 
 
2.1 This section applies to linking with suppliers  providing public telecommunications transport 
networks or services in order to allow the users of one supplier to communicate with users of another 
supplier and to access services provided by another supplier, where specific commitments are undertaken.  2.2 Interconnection to be ensured 
 
Interconnection with a major supplier will be ensu red at any technically feasible point in the 
network.  Such interconnection is provided.  (a) under non-discriminatory terms,  conditions (including technical standards and specifications) 
and rates and of a quality no less favourable than that provided for its own like services or for 
like services of non-affiliated service suppliers or  for its subsidiaries or other affiliates; 
 (b) in a timely fashion, on terms, conditions (i ncluding technical standards and specifications) and 
cost-oriented rates that are tr ansparent, reasonable, having regard to economic feasibility, and 
sufficiently unbundled so that the supplier n eed not pay for network components or facilities 
that it does not require for the service to be provided;  and 
 (c) upon request, at points in addition to the networ k termination points offered to the majority of 
users, subject to charges that reflect the cost of construction of necessary additional facilities. 
 2.3 Public availability of the pro cedures for interconnection negotiations 
 
The procedures applicable for interconnecti on to a major supplier will be made publicly 
available.  2.4 Transparency of interconnection arrangements 
 
It is ensured that a major supplier will make  publicly available either its interconnection 
agreements or a reference interconnection offer.  2.5 Interconnection:  dispute settlement 
 
A service supplier requesting interconnection with  a major supplier will have recourse, either: 
 (a) at any time or  (b) after a reasonable period of time which has been made publicly known to an independent 
 domestic body, which may be a regulatory body as referred to in paragraph 5 below, to resolve 
 disputes regarding appropriate terms, cond itions and rates for interconnection within a 
 reasonable period of time, to the extent th at these have not been established previously. 
 
3. Universal service  
 
Any Member has the right to define the kind  of universal service obligation it wishes to 
maintain. Such obligations will not be regarded  as anti-competitive per se, provided they are 
administered in a transparent, non-discriminator y and competitively neutral manner and are not more 
burdensome than necessary for the kind of universal service defined by the Member.   TN/S/O/KEN 
 Page 17 
 
 
4. Public availability of licensing criteria 
 
Where a licence is required, the following will be made publicly available: 
 
 (a) all the licensing criteria and the period of time normally required to reach a decision 
 concerning an application for a licence and 
  (b) the terms and conditions of  individual licences.  
The reasons for the denial of a licence will be  made known to the applicant upon request. 
 
5. Independent regulators 
 
The regulatory body is separate from, and not accountable to, any supplier of basic 
telecommunications services. The decisions of and the procedures used by the regulators shall be 
impartial with respect to all market participants. 
 
6. Allocation and use of scarce resources 
 
Any procedures for the allocation and use of scarce resources, including frequencies, numbers 
and rights of way, will be carried out in an obj ective, timely, transparent and non-discriminatory 
manner.  The current state of allocated frequency ba nds will be made publicly available, but detailed 
identification of frequencies allocated for specific government uses is not required. 
 
__________