Kenya

Starting a Business in

Nairobi - 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 State registration of legal entity, statistical, and tax registration with the Center for Public Registration

The company name reservation lasts 30 days but can be renewed for a similar period.
3 days KES 100
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. As an administrative requirement, the KRA now requires the personal identification numbers (PINs) of all parties on whose behalf duty-stamped documents are submitted. Documents must be first assessed by the Stamp Duty Office before payment can be processed by the KRA-designated banks. The process has lengthened initially to about 2 weeks because the Stamp Duty Office waited to receive confirmation of bank payment after clearance of funds. However, the time has reduced in 2008 as a result of better communication between the Ministry of Lands and housing and Kenya Revenue Authority (KRA) to 5-10 days. Bank handling charges of KES 100 for each transaction are also due.

5 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


1 day KES 100 (bank commission)
4 Declaration of compliance (Form 208) is signed before a Commissioner for Oaths

According to the Companies Act (Cap. 486), an advocate engaged in the formation of the company or a director or company secretary named in the Articles 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.

12 days (7 - 14 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 (1 - 2 days) No cost
7 Apply for a business permit

The fee to apply for a business permit varies by type of business, number of employees, and size of the company’s premises. The fee is payable to the Nairobi City Council, Licensing Department. The City Council will issue a business permit. The fee for a medium trader, shop, or retail service from 5 to 20 employees and/or premises 50–300 square meters is KES 10,000.

5 days KES 10,000
8 Register with the National Social Security Fund (NSSF)

The National Social Security Fund provides the employee with a lump-sum retirement benefit. Historically, the rate of return paid by the state is considerably less than that achieved by private schemes, but 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.

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, but they only cover a fraction of actual costs. Hence, most companies provide employees with medical insurance.

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.
2 days KES 3,000 (between KES 2,500 and KES 3,500)
Subnational Data

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