Starting a business in Kenya: step by step

Register the business, sort out tax, then get your permit. Funding and tenders come after.

Your checklist. Tick things off as you go; it's saved on this phone only.

1. 1. Check and reserve the name first. Search and reserve a business or company name (BRS) There is no separate name search any more. You give BRS 3 to 5 names, in order of preference, inside your registration application on eCitizen, and BRS reserves one that is unique.
2. 2. For a sole trader or partnership. Register a business name with BRS Apply on BRS eCitizen: pick 3 to 5 names in order of preference, fill in the details, upload the signed form and pay KSh 950. Name search is now part of the same application.
3. 3. Or register a limited company instead. Register a private limited company with BRS Apply on BRS eCitizen: choose private limited company, give 3 to 5 names, add directors and shareholders, sign and upload the forms, then pay KSh 10,750. It takes about 3 to 5 days.
4. 4. The business needs to be on iTax. Register for a KRA PIN Apply for your KRA PIN online on iTax. You need your national ID details, plus your employer's PIN if you're employed.
5. 5. For tax invoices. Register for and use KRA eTIMS (electronic tax invoices) Everyone in business, even if not registered for VAT, must issue electronic tax invoices through eTIMS. Small traders can use the free eTIMS Lite: dial *222#, use eCitizen, or get the eTIMS Non VAT app.
6. 6. Check which tax applies to your turnover. Turnover Tax (TOT) for small businesses If your business sells more than KSh 1 million but not more than KSh 25 million a year, you pay Turnover Tax of 1.5% on your gross sales. Register for TOT on iTax, then file and pay every month by the 20th.
7. 7. Once you're big enough to register for VAT. Register for VAT with KRA and file VAT returns If you sell, or expect to sell, KSh 5 million or more of taxable goods or services in a year, you must register for VAT. Add the VAT obligation to your KRA PIN on iTax, then file and pay every month by the 20th.
8. 8. Your county business permit (Nairobi). Get or renew a Nairobi County Unified Business Permit (UBP) Apply or renew online on the NairobiPay portal (nairobiservices.go.ke): make a service application, wait for the county to approve it, pay the invoice, then download your permit. The Unified Business Permit replaces the old single business permit plus fire, food, health and advertising licences.
9. 9. To bid for Government tenders, if you qualify. Get an AGPO certificate (government tenders for youth, women and persons with disabilities) If your registered business is at least 70% owned and fully led by youth (18 to 34), women or persons with disabilities, create an account on agpo.go.ke, upload your ID, business registration, tax compliance certificate and other documents, then visit the AGPO desk at a Huduma Centre to have it processed.
10. 10. Small loans for individuals and groups. Borrow from the Hustler Fund (Financial Inclusion Fund) Dial *254# (or use the Hustler Fund mini app in your mobile money app) to borrow KSh 100 to KSh 50,000 with no collateral. Repay within 14 days at 8% a year.