Kenya

Starting a Business in

Mombasa - Kenya

Below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

The information appearing on this page was collected as part of the Doing Business subnational project in Kenya. Download this Doing Business report or explore other cities and topics.

No. Procedure Time to Complete Associated Costs
1 Obtain approval for the company name from the Registrar of Companies

The company name reservation lasts 30 days but can be renewed for a similar period. This procedure can only be done in Nairobi. Most applicants complete procedures one to five in Nairobi given that the applicant, or the company's agent, is already in town. Given that the use of lawyers is not mandatory for company incorporation in Kenya, lawyer fees are not taken into consideration.
An online name search and reservation system is currently being piloted. Until the system is fully implemented, one must still submit a letter to the Registrar of Companies accompanied by the prescribed search fees when seeking to reserve a name.

4 days (3 days name approval + 1 day travel) KES 3,100 (filing fee: KES 100 + transportation: KES 3,000)
2 Stamp the memorandum and articles and a statement of the nominal capital

Effective January 1, 2005, the Kenya Revenue Authority (KRA) took over stamp duty collection from the Ministry of Lands and Housing. Documents must be first assessed by the Stamp Duty Office before payment can be processed by KRA-designated banks. In 2009, a Stamp Duty office opened at the Attorney General's Chamber, making the assessment of the stamp duty more efficient.
This procedure can be done either in Nairobi, since the applicant is already in town, or at the Lands Office in Mombasa. The Land Office has acquired franking machines and it liaises with the local banks accredited to collect the stamp duty.

10 days (7 - 14 days) KES 8,080 (1% of nominal capital + KES 2,020 stamp duty on Memorandum and Articles of Association)
3 Pay stamp duty at bank

This procedure can be done either locally or in Nairobi. Payment of stamp duty is done by Banker's cheque or cash at accredited bank.
1 day KES 100 (bank commission)
4 Declaration of compliance (Form 208) is signed before a Commissioner for Oaths

A company founder must sign Form 208, the declaration of compliance, which accompanies the registration documents to be submitted to the Registrar of Companies.
1 day KES 200
5 File deed and details with the Registrar of Companies at the Attorney General's Chamber in Nairobi (Sheria House)

The founder must file the incorporation deed and the required documents and forms (listed below) with the Registrar of Companies:
1. Stamped memorandum and articles of association;
2. Statement of capital;
3. Form 201, Notice of Situation of Registered Office;
4. Form 203, Particulars of Directors and Secretary;
5. Form 208, Declaration of Compliance with the Companies Act;
6. Copy of the company name approval.

The fees to be paid for the registration of a company in Kenya are currently regulated by Legal Notice No. 80 of 2003 and are payable as follows:
1. For the first KES 100,000 of nominal capital, there is a fixed fee of KES 2,200;
2. For every additional KES 20,000 of nominal capital after the first KES 100,000, there is a fee of KES 120, subject to a maximum of KES 60,000;
3. Filing fee for three forms: KES 600.

14 days (14 - 21 days) KES 5,836
6 Register with the Tax Department for the single taxpayer identification number online

Registration for a personal and a company identification number (PIN) is required for the local service tax and the pay-as-you-earn (PAYE) tax. KRA has adopted the PIN as the single taxpayer identification and discontinued the VAT number.
The registration for PIN can be done on-line.



1 day No cost
7 Apply for a business permit

The applicant fills out the application form with details about the scope, size, and location of intended business. The applicant is given a generated bill (amount payable for acquiring a permit). The fee varies by type of business, number of employees, size and location of company’s premises. The fee is payable to the Mombasa Municipal Council. The fee for a medium trader, shop, or retail service from 5 to 20 employees and/or premises 50–300 square meters is KES 8,500. Upon payment, all forms are taken for signature and the permit is ready for collection latest by the following day.
2 days KES 8,500
8 Register with the National Social Security Fund (NSSF)

The National Social Security Fund provides the employee with a lump-sum retirement benefit. Participation is mandatory. The employer pays a standard contribution of about 1% of salary, subject to a maximum of KES 400 per month. Half the contribution is deductible from the employee’s salary. The precise amount of the contribution (where less than the maximum) is determined by reference to salary bands. This procedure is done at the local NSSF office in Mombasa.
1 day No cost
9 Register with the National Hospital Insurance Fund (NHIF)

The employee contributes a fixed sum to the National Hospital Insurance Fund (NHIF), which must be deducted by the employer from the employees’ salary. The maximum contribution is KES 320 per month. The contributions are used to offset the costs of medical treatment. This procedure is done at the Mombasa NHIF office.
1 day No cost
10 Make a company seal after a certificate of incorporation has been issued

Seals are made by private entities that require sight of a copy of the certificate of incorporation. There are seal shops in Mombasa.
The Companies Bill 2010, which is pending Parliament approval, proposes to make common seals optional.
2 days KES 3,000
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