Kenya

Ease of Doing Business in

Kenya

This page summarizes Doing Business 2015 data for Kenya. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region Sub-Saharan Africa
Income Category Low income
Population 44,353,691
GNI Per Capita (US$) 930
City covered Nairobi
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
136 137 down 1

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
54.98 54.59 down 0.39
Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

Subnational Data


Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2015 Rank 143 DB 2014 Rank*** 134 Change in Rank down-9
DB 2015 DTF** (% points) 74.02 DB 2014 DTF** (% points) 74.08 Change in DTF** (% points) down-0.06

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Kenya Sub-Saharan Africa OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
10.0 7.8 4.8

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
30.0 27.3 9.2

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

View methodology
Cost (% of income per capita)
42.7 56.2 3.4

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in min. capital (% of income per capita)
0.0 95.6 8.8
No. Procedure Time to Complete Associated Costs
1 Reserve a unique company name at the Companies Registry 1 day on average KES 100 per name reservation
2 Stamp the memorandum and articles of association, and a statement of the nominal capital 5 days 1% of nominal capital (KES 20 for every KES 2,000 or part thereof of capital) + KES 2,000 for stamp duty on Memorandum and Articles of Association
3 Pay stamp duty at a designated bank 1 day KES 100 for bank commission
4 Sign the Declaration of Compliance before a commissioner of oaths or a notary public 1 day KES 200
5 Register with the Registrar of Companies at the Attorney General Chambers in Nairobi 12 days on average KES 7,360
6 Register for taxes at the Kenya Revenue Authority 1 day no charge
7 Apply for a business permit 5 days KES 15,000
8 Register with the National Social Security Fund (NSSF) 1 day no charge
9 Register with the National Hospital Insurance Fund (NHIF) 1 day no charge
10 Make a company seal 2 days between KES 2,500 and KES 3,500

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

***Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

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