From registering with the Business Registration Service to obtaining sector-specific licences, here is everything you need to know about setting up a business legally in Kenya.
Starting a business in Kenya involves several legal steps that, if overlooked, can result in fines, forced closure, or personal liability.
Step 1: Choose Your Business Structure
- **Sole Proprietorship** — Simplest, but unlimited personal liability. - **Partnership** — Two or more persons sharing profits and liabilities. - **Limited Liability Company** — Separate legal entity; most popular for growth businesses. - **Non-Profit / NGO** — Registered under the NGO Co-ordination Act.
Step 2: Register with the Business Registration Service (BRS)
Visit ecitizen.go.ke to reserve your company name and complete registration. Processing takes 3–5 working days and costs KES 10,650 for a private limited company.
Step 3: Obtain a KRA PIN and Register for VAT (if applicable)
All businesses must obtain a Kenya Revenue Authority (KRA) Personal Identification Number (PIN). Businesses with annual turnover above KES 5 million must also register for VAT.
Step 4: Register with NHIF and NSSF
Employers must register with the National Hospital Insurance Fund (NHIF) and National Social Security Fund (NSSF) for all employees.
Step 5: Sector-Specific Licences
Depending on your business, you may need licences from sector regulators such as CBK, CMA, KEBS, or county governments.
Veritas Legal offers a Business Start-Up Package that handles all of the above on your behalf.
Disclaimer: This article provides general legal information only and does not constitute legal advice. For specific matters, consult a qualified advocate.