Nairobi, Sept. 7 -- Imagine investing money for a minority stake in a promising startup or a friend's business, only to find yourself completely sidelined when the majority shareholders make decisions that harm the company or dilute your investment.

In Kenya, minority shareholders are far from powerless. The Companies Act and other legislation provide a range of protections, and a savvy investor can negotiate additional rights through a shareholders' agreement and the company's articles of association before committing capital.

Rights under law

Perhaps the most significant protection is the requirement that certain decisions must be passed by a special resolution, which requires not less than 75 percent of the total voting rights. This...