Skip to contentHow to start a business in Kenya
Business Idea
- For a startup, a sound business idea is imperative and the business idea must reflect the needs of the market.
- Questions that you can ask yourself are, does your business idea reflect the needs of the market? Does it identify a market gap, and how do you plan to address this gap? For this you need to conduct a market research.
Name Search
- Name
on search on E-citizen Portal is the first process of making your business a
legal entity in Kenya.
- Name
search costs around Ksh300 and the process takes less than 5 minutes, and the
name must be unique and has not been used.
Business Registration
- You
need to decide which type of structure best fit your Business.
- In
Kenya there are there basic forms of business, sole proprietorship, partnership
and Limited Liability Company.
- Sole
proprietorships and Partnership do not require Registration and are easier to
start compared to Limited Liability Company.
- For
sole proprietorship you will just need to have it registered after the name
search and no more legal procedures required.
PIN/VAT Registration
- Setting
a KRA Pin/VAT is an important part of business registration process.
- This
does require that both or all directors present their personal KRA pin
certificates
- For
Companies, original certificate of incorporation and the
Memorandum and articles of association will have to be presented in person at
the KRA offices
Business Licensing
- Business
license is a permit that allows you to operate business in a particular area or
region.
- You
can pay for the license online, pay with your e-wallet and print a legal
colored license as many times as you please.
- However,
it is important to understand that the online system does not automatically
generate a business number and so you might be forced to visit City Hall Annex
in the case of Nairobi or go to respective county headquarters in case you are
business is outside Nairobi.
- There
is always schedule charges for each type of business and hence the need to look
at the schedule charges beforehand.
- Looking
at the schedule in advance can help you frame your business and pay the correct
amount for licensing.
Get a Website
- If
you want to build a serious business in Kenya and particularly in Nairobi you
will need a website.
Get an office
- You
might need an office depending on the nature of your business. However, you
need to understand that cost of renting an office varies from town to town,
Nairobi being the prime area.
Online Platforms
- Depending
on the nature of your business, you might want to exploit the growth of online
business in the country.
- Online
platforms such as Olyx and PigiaMe are some of the best online selling
platforms which can prove vital to your business. Jumia and Kilimall are also
popular platforms which you could consider venturing into.
- Convenience
is a key feature that modern consumers seek and hence the need to invest in
online business due to its convenience.
Demographic Dynamics
- Your
brand positioning will depend on how well you understand the market and
demographic details and information.
- Kenya
is a market based economy and is generally considered as the commercial and
economic hub of East Africa and hence ideal for business.
- As
at 2016, Kenya had a population of 48.46 million and with an annual growth rate
of 2.7%.
- Kenyan
Middle-Class who are the economy’s consumer is growing and the youths
(individuals between the ages of (18-35) form more than 60% of the population.
- The
above data and information are ideal in deciding the type of business to invest
and the market to venture in Kenya.