10 Easy Procedures to Start Successful Business in Kenya
January 15, 2010 by Muli wa Kyendo
Filed under Business Blog
One of the questions that many investors ask is: How do I go about starting business in Kenya? The requirements are pretty simple and very much the same throughout the country, although you will encounter some minor variations here and there.
The Steps
The general steps are as follows:
1. Decide what kind of business you want to start. Do you want a partnership, a limited liability company or sole proprietorship?
2. Once you have decided, choose a name for your business.
3. Submit the name for a search at the Registrar of Companies. The purpose is to ensure your name is unique and doesn’t duplicate that of another business.
4. If yours is a limited liability company, you must develop a Memorandum and Articles of Association. It’s not a legal requirement, but most investors will engage the services of a lawyer to handle this aspect and the next stages of their business registration.
5. A limited liability company must present its Memorandum and Articles of Association for stamp duty.
6. A limited liability company then files its deeds and articles with the Registrar of Companies.
7. If a manufacturing or processing company, you must obtain certificates of compliance from the necessary government agencies. For example, for environmental standard compliance, you will get certificate of compliance from the National Environment Management Agency (NEMA).
8. The next step is to obtain a trade license or a single business permit.
9. Depending on the number of employees, you will need to register with the National Social Security Fund (NSSF) and the National Health Insurance Fund (NHIF). Both these are employee insurance schemes, NSSF for retirement savings and NHIF for health.
10. Start you business.
Key Acts of Parliament That Govern Business in Kenya
The conduct of business in Kenya is governed by several Acts of Parliament some of which are:
1. Investment Promotion Act, 2004
2. The Procurement and Supplies Act 2005
3. Sessional Paper No.2 of 2005 on Development of Micro and Small Enterprises for Wealth and Employment Creation and Poverty Reduction.
4. Restrictive Trade Practices, Monopolies and Price Controls Act.
The Investment Promotion Act, 2004 is the main policy statement governing both the local and foreign investments. Among other things, it outlines the licenses and other important requirements that a local or foreign investor should meet.
