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Start a business in Kenya: law, taxes, wages, customs and logistics

Kenya's economy is dominated by services — finance, telecoms, trade and transport — alongside an export-oriented agricultural sector (tea, horticulture, coffee) that remains a key source of foreign exchange. Manufacturing, including textiles in export-processing zones, is a smaller share of GDP but serves as a regional export platform into the East African Community and COMESA, with digital services (led by M-Pesa)…

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Kenya at a glance

Currency	shilling kényan (KSh)
Legal system	Common law
Time to register	Registration is done fully online and typically takes a few working days; the exact timeline should be confirmed with the BRS (flagged as uncertain in the source data).
Cost to register	Modest online registration fees (on the order of a few tens of thousands of Kenyan shillings for a limited liability company); exact fee schedule to be checked on the BRS website.
VAT	Standard rate of 16%, zero-rated for exports; registration threshold of KES 5 million (a planned increase to KES 8 million under the 2025 Finance Act has, according to a local advisory firm, not yet taken effect).
Corporate income tax	30% for resident companies and permanent establishments of non-residents (PwC, 2025). Special rates apply: EPZ enterprises pay 0% for 10 years then 25% for 10 years then 30%; SEZ enterprises pay 10% for 10 years then 15% for 10 years; motor-vehicle assembly is taxed at 15%.
Minimum wage	General minimum wage (unskilled urban worker) of around KES 16,100 per month.
Employer social contributions	NSSF contributions of 6% (split between employer and employee), a 2.75% employee SHIF health-insurance contribution, and a 1.5% Housing Levy paid by both employer and employee, plus a small NITA training levy of KES 50 per employee.

Steps to register a company in Kenya

Search for and reserve the company name on eCitizen / BRS (Business Registration Service)
Draft the Memorandum & Articles of Association and file them through eCitizen
Obtain the certificate of incorporation and registration number (BRS)
Obtain a tax PIN from the Kenya Revenue Authority (KRA) via iTax
Declare beneficial owners (BRS)
Register with the social bodies: NSSF, SHA and the Housing Levy
Obtain the county Single Business Permit
Obtain any sector-specific licences required for the activity

Common legal forms

Form	Minimum capital
LTD — Private company limited by shares	none
PLC — Public company	—
SP — Sole proprietorship	none
PTN — Partnership	none

Investment code

Governed by the Investment Promotion Act together with the Special Economic Zones Act 2015 and the Export Processing Zones Act: exemptions from customs duty on capital goods, reduced profit-tax rates in EPZ/SEZ zones, and accelerated depreciation. A minimum investment threshold of USD 100,000 applies for an investment certificate (to be verified).

Taxation in Kenya

Standard corporate income tax regime
Turnover Tax (ToT) of 3% on gross receipts for annual turnover between KES 1 million and KES 25 million
Special EPZ and SEZ regimes
Withholding tax: For non-residents: 15% on dividends, 15% on interest, 20% on royalties and fees. For residents: 5% on dividends (exempt above a 12.5% voting-rights threshold), 15% on interest (25% on bearer instruments), 5% on royalties (PwC).
Incentives: EPZ: 0% profit tax for 10 years, then 25% for the next 10 years; SEZ: 10% then 15%; a 15% rate applies to motor-vehicle assembly, shipping and carbon-market operators. A Significant Economic Presence (SEP) tax of 3% applies to digital services supplied by non-residents (2025 Finance Act).

Employment, wages and social contributions in Kenya

Minimum wage: General minimum wage (unskilled urban worker) of around KES 16,100 per month.
Rough order of magnitude for a qualified employee in the urban formal sector (a manager/senior technician earns substantially more), converted at an approximate 2026 exchange rate; figures should be validated locally.
Employer contributions: NSSF contributions of 6% (split between employer and employee), a 2.75% employee SHIF health-insurance contribution, and a 1.5% Housing Levy paid by both employer and employee, plus a small NITA training levy of KES 50 per employee.
The labour market is largely informal: hiring without a contract or registration is common but exposes employers to labour-inspection checks and NSSF back-payment claims. A gradual formalisation path is recommended: registered internships/apprenticeships, then declared fixed-term contracts, then permanent contracts under a simplified tax regime.

Customs and trade in Kenya

Multiple taxes and licensing requirements apply at the border, together with mandatory KEBS quality standards and occasional export restrictions on food products.

East African Community (customs union and common market): member
COMESA: member
AfCFTA: ratified
EU Economic Partnership Agreement (Kenya-EU): in force
AGOA: renewed through December 2026 (law enacted 2 February 2026, with benefits retroactive to September 2025); Kenya is a designated beneficiary for 2026
Economic partnership agreement with the United Kingdom

Logistics in Kenya

Port of Mombasa (KPA) — The leading port in East Africa, serving as the gateway for Uganda, Rwanda, Burundi, South Sudan and eastern DR Congo.

Port of Lamu (LAPSSET) — A newer port under development as part of the Lamu-South Sudan-Ethiopia transport corridor project.

Port of Kisumu — Lake port on Lake Victoria.

Corridor Northern Corridor (Mombasa-Nairobi-Malaba-Kampala) — The main trade corridor to Uganda, Rwanda, Burundi, eastern DR Congo and South Sudan.

Corridor LAPSSET corridor — Planned Lamu-Ethiopia-South Sudan transport corridor, partially completed.

Container clearance at Mombasa typically takes a few days; overall logistics costs are notably lower than in landlocked neighbouring countries, though exact figures should be confirmed with the Kenya Ports Authority or the World Bank.

Financing in Kenya

Central bank: Central Bank of Kenya (CBK); the Kenyan shilling (KES) floats in its own currency zone.
Banking system: About forty commercial banks operate in the market, dominated by a handful of large groups (Equity, KCB, Co-op, Absa). Lending rates are typically in the high single digits to low double digits.
Exchange regime: Floating exchange rate with free convertibility and repatriation of profits, without formal exchange controls, though transactions must be declared to the authorities for anti-money-laundering purposes.
Stock exchange: Nairobi Securities Exchange (NSE), one of the oldest and most active exchanges in East Africa.
Mobile money: M-Pesa (Safaricom), Airtel Money, T-Kash

Key sectors in Kenya

Finance and fintech — M-Pesa, regional banks, and some of the most active venture-capital activity in Africa.
Agro-industry and horticulture — Tea, cut flowers, avocado and dairy processing.
Textiles and apparel in export processing zones — Exports to the United States (AGOA, status uncertain) and the European Union.
ICT and digital services — Nairobi is a well-known innovation hub ("Silicon Savannah").
Renewable energy — Geothermal, wind (Lake Turkana) and solar power.
Logistics and transport — Mombasa port, the SGR railway and the JKIA air-cargo hub.

Local institutions in Kenya

Kenya National Bureau of Statistics (KNBS) — Nairobi. Official national statistics, economic surveys and censuses. knbs.or.ke
Central Bank of Kenya (CBK) — Nairobi. Central bank: banking supervision and the policy rate. centralbank.go.ke
Kenya Investment Authority (KenInvest) (KenInvest) — Nairobi. Investment promotion, one-stop shop and investment certificates. invest.go.ke
Business Registration Service (BRS) — Nairobi. Companies register, sole-trader registration and beneficial-owner declarations (via eCitizen). brs.go.ke
Kenya Revenue Authority (KRA) — Nairobi. Tax and customs administration: PIN registration via iTax and iCMS. kra.go.ke
Export Processing Zones Authority (EPZA) — Athi River. Manages export processing zones and related incentives. epzakenya.com
Kenya Ports Authority (KPA) — Mombasa. Operates the ports of Mombasa and Lamu. kpa.co.ke
National Treasury (NT) — Nairobi. Budget, public debt and economic policy. treasury.go.ke
National Social Security Fund (NSSF) — Nairobi. Manages employee pension contributions. nssf.or.ke
Social Health Authority (SHA) — Nairobi. Universal health insurance scheme and contributions. sha.go.ke
Kenya National Chamber of Commerce and Industry (KNCCI) — Nairobi. Represents the private sector, with a network of local chambers. kenyachamber.or.ke
Kenya Law (Kenya Law) — Nairobi. National legal database and legislation portal. kenyalaw.org

Frequently asked questions

How long does it take to register a company in Kenya?

Registration is done fully online via eCitizen/BRS and typically takes a few working days; the exact processing time should be confirmed directly with the BRS.

How much does it cost to register a company in Kenya?

Online registration fees for a limited liability company are modest, on the order of a few tens of thousands of Kenyan shillings; the exact fee schedule should be checked on the BRS website.

What is the VAT rate in Kenya?

The standard VAT rate is 16%, with exports zero-rated; the registration threshold is KES 5 million (a proposed increase to KES 8 million has reportedly not yet taken effect).

What is the corporate income tax rate in Kenya?

The standard rate is 30% for resident companies, with reduced rates for enterprises operating in export processing zones (EPZ) or special economic zones (SEZ).

What is the minimum wage in Kenya?

The general minimum wage for an unskilled urban worker is around KES 16,100 per month.

Is Kenya a common law or civil law country?

Kenya follows common law and is not a member of the OHADA system. Commercial disputes are handled by the High Court's commercial division and the Nairobi Centre for International Arbitration (NCIA).

What is Kenya's currency?

The Kenyan shilling (KES), which floats freely with no formal exchange controls.

What is Kenya's main port?

The Port of Mombasa is the leading gateway in East Africa, serving Uganda, Rwanda, Burundi, South Sudan and eastern DR Congo; the newer Lamu port is being developed under the LAPSSET corridor project.

Sources

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