IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

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Catherine K. Gachenge
Student, Jomo Kenyatta University of Agriculture and Technology
Dr. Karanja Ngugi (PhD)
Lecturer, Jomo Kenyatta University of Agriculture and Technology

Kenya Investment Authority (KenInvest) is mandated to issue foreign investor with an Investment Certificate, here in refered to as license, so that the investor can begin his economic activities in the country. The certificate allows the investor to immediately start the business operations prior to obtaining other relevant requirements. Many investors have complained that the process of issuing is time consuming and even after the issuance it is difficult to start operations as there are other government agencies’ prereliquisites one needs to fulfil. Therefore, there was need to investigate challenges facing KenIvest in licensing foreign direct investment in Kenya. Specifically, the study established how license regulations affect foreign direct investment, and how KenIvest staffing, organisation structure and technology influence the licensing process. The study used descriptive research design with a focus on both qualitative and quantitative characteristics and status of the licensing and KenIvest structure. The target population of the study was 62 staff of KenIvest. The researcher used stratified random sampling to select  24 respondents. The results showed there is transparency in licensing. In addition majority of the respondents were in agreement that the single piece of legislation which was established gives greater clarity, transparency and confidence to investors. From the findings, KenIvest has embraced information technology in its operations. Computerization and networking of offices has improved issuance of the license by KenIvest. From the findings, the staff of KenIvest are adequate to handle licencing workload.  However, some respondents argued that they were in- adequate and recommended that more staff be recruited. From the findings, several organizational factors influence licensing process. These are Executive Director's leadership, followed by organizational procedures, management skills, employee training and financial resources.

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