Your Ultimate Guide to Business Permits in Kenya

Unafaa kua permit before ufungue biz– big or small. Otherwise, you and kanjo guys will be playing a not-so-fun game of hide and seek every time they come sniffing. Ushai checki mahawker wakihepa kanjo tao? I don’t know about you, but I think there are better ways to get your cardio in.

And if you think unwanted cardio is the only downside to opening a business without a permit, wait until you find out what happens when you lose that foot race. Oh, it’ll happen I promise you!

Ao wasee ukua na cardio ajab. And when they’re not Omanyalaing, they’ve got stealth skills straight out of an animal documentary.

All jokes aside, any aspiring entrepreneur needs to know their way around business permits. There’s a bit of a learning curve to them, but the good news is that najua izi stuff na niko apa nikueke na rada. I’ll walk you through every important detail — from definitions to the fastest way to get a business permit.

Let’s get it.

A business permit is a government-issued document that authorizes a business to operate within a specific jurisdiction, usually a county. Most of us tunaijua ka “Single Business Permit”, but that term can be somewhat misleading (ntaexplain mbona nasema ivo in a minute; tulia tu).

Ka we ni msee ukua na curious mind, you’re probably wondering “Kazi ya business permit ni gani? Ni kitu inasaidia raia, ama ni just another way ya local governments kukulia?”

Sikatai county governments ucheza chafu sometimes, but ukweli ni si ubenefit from the fact that wanaforce business owners waget permits.

Here’s why:

Kazi ya business permits ni kumake sure businesses zinameet certain safety, health, and ethical standards. Izo standards uprotect consumers, employees, and the community at large from unfair, unsafe, or unethical business practices.

There are two types of Business permits in Kenya:

⦁ The Single Business Permit (AKA, the Unified Business Permit).

⦁ Sector-specific permits

Tukague kila category.

Unakumbuka nikisema the term “Single Business Permit” can be somewhat misleading?

Here’s why I said that:

The “single” part of its name inafanya Single Business Permit ikae as if iukua one document, which it’s not. In reality, Single Business Permit ni combo ya several licenses a business needs to operate in a specific county. Depending on the type of the business, a Single Business Permit inaeza combine licenses kama:

⦁ Trading license

⦁ Fire clearance certificate

⦁ Advertising signage license

⦁ Health certificate

⦁ Food hygiene license

This is precisely why ufai kutumia the terms “Single Business Permit” and “business permits” interchangeably. They’re not quite the same thing. To be fair, though, naget why zinaeza confuse msee ju Single Business Permit ukaa ka document moja ukiidisplay place ya biz.

It’s the most common permit type in Kenya and na ni must ikue renewed annually — usually between January 1st and March 31st.

Biz ziko certain industries ukua required kuget additional licenses beyond the basic Single Business Permit. We call these “extra” licenses sector-specific permits or sectoral permits, na ni must ukue nazo ka unadai kufungua biz in a highly regulated sector like healthcare, education, hospitality, manufacturing, construction, and manufacturing.

Example za sectoral permits ni kama:

⦁ Liquor license: Ii ni must-have for anyone selling alcohol. It’s the reason your “kalocal” has to close at certain hours ju ndio udetermine kila kitu, including who alcohol sellers can sell to (i.e., consumers or retailers) to how late they can stay open.

⦁ A pharmaceutical license: ii nayo ni requirement for pharmacies, manufacturers, and wholesalers of pharmaceutical products.

⦁ An Environmental Impact Assessment (EIA) license: This is probably the one license type ujapatana nayo. Inapeanwa na National Environment Management Authority (NEMA) to any business whose activities might leave a significant mark on the environment.

⦁ A building permit: A must-get for any business involved in construction projects. Inaenforce land use, safety, and local zoning regulations.

⦁ Tour operator license: Ii nayo ni self-explanatory. Ni must ukue nayo to run a commercial tours business on public land.

Validity period ya izi permits inavary na sector. The same goes for the renewal window, cost, na requirements.

Unashtuka ju ujui ka biz yako inadai sectoral permit? Usitense. I’ve got you:

Fika ii page. Utaget all the info you need about biz zenye zinafaa kua na sectoral permit. Siimple! (read in Atwolis voice 😆).

Alright, imma need you to zone back in ju tumefikia the most important stuff. Maybe grab a refreshing drink, stretch – whatever it takes to dial back in.

All set?

Great!

Here’s the quickest way to go about getting a business permit:

Kitu ya kwanza unafaa kudo ni kuregister biz yako kwa Registrar of Companies. You can’t get a permit for a non-registered business– no ifs or buts about that.

I know bureaucracy isn’t anyone’s idea of fun, but this is one of those situations where you’ve got to put your big boy/girl pants on, suck it up, and get sh*t done.

Registraton process ukua ivi:

Fika pale eCitizen portal ucreate account (ka huna, that is. Ka uko nayo already, just log in). Once you’re in, follow izi steps:

⒈Click place imeandikwa “Business Registration Service.” Utaicheki tu ju ukua clear kwa menu ya io website.

⒉Utaona button ya “Make Application.” Click apo then uselect “name search” kwa options zitatokea.

⒊Eka jina unadai kupea biz yako alafu upige search to see if the name you’re eyeing has already been taken– you can’t register a name that another business already goes by, so ii ni step important. If the name is already taken, try zingine adi uget moja safi yenye iko available.

⒋They’ll ask for a brief description of your business activities. Peana teke teke, confirm details zako and then hit “submit”.

⒌You’ll be asked to pay a name search fee of Ksh 150– Ksh 100 for the name reservation, and a 50 bob eCitizen convenience fee (whatever that means). Now isn’t the time to ask questions. Lipa tu umalizane na ii story.

And that’s all!

All you need to do now is chill and let them review your name reservation application. Ikienda through watakunotify via email that your business name has been reserved for 30 days– no one can claim it in that period.

Paperwork requirements uvary depending on whether biz unadai kuregister ni sole proprietorship, partnership, ama limited company. To help you figure out what documents you’ll need, nimeunda table kukushow the paperwork required for each business type:

Check it out:

⦁ The business name you reserved in Step 1 above.

⦁ A copy of the business owner ID/passport

⦁ A recent passport photo of the business owner(s) that clearly shows their face.

⦁ A copy of the business owner’s KRA PIN Certificate

⦁ The business’ physical address (I know this isn’t “paperwork” per se; I just thought it’d be helpful to have you note it down somewhere)

⦁ The company name you reserved earlier.

⦁ Copies of ID/Passport for all shareholders and directors.

⦁ Recent passport photos of all shareholders and directors.

⦁ Copies of shareholders’ and directors’ KRA PIN certificates

⦁ Memorandum and articles of association. Kilami mingi isikushtue. This is simply a document that lays out the company structure and its objectives, directors, and shareholders.

⦁ Filled out CR1,CR2 , and CR8 forms

⦁ The company’s physical address.

With your paperwork ready, kitu imebaki ni kufanya the actual registration. Log in kwa eCitizen account yako, then go to “Business Registration Service," Utaiona kwa dashboard the minute you log in. If you can’t find it for some reason, search “Business Registration Service" kwa search bar, click on it then ufollow izi steps:

⒈You’ll be asked to select the type of business you’re registering. Do that.

⒉After umeselect business type, utapewa forms ujaze. Fill them out na upeane any supporting paperwork they ask for.

⒊Lipa registration fees (the amount will be indicated)

⒋Wait for the Registrar of Companies to process your application.

If you do everything by the book, they should send over your Certificate of Incorporation (if you registered a limited company) or a Business Registration Certificate (if you registered a sole proprietorship or partnership) within a couple of days via the eCitizen platform.

If you’ve been paying close attention, you’re probably thinking “ KRA PIN gani tena? Si nishapeana already time nlikua naregister my business?”

Uko right, but PIN ulipeana ukiregister company/biz ilikua personal KRA PIN. The PIN I’m talking about here is your business’ KRA PIN. Remember, the taxman will treat your business as a separate entity from you and any other people you own the business with, so lazima biz ikue na its own KRA PIN.

Application process is ni almost the same as the one you used to get your own PIN. Main difference ni, you’ll apply as "Non-Individual” instead of “Resident.” Paperwork requirements ni different kidogo pia.

Kuget PIN for sole proprietorship/partnership, you’ll need:

⦁ The Business Registration Certificate you got earlier.

⦁ A copy of your ID/passport and your business partner’s.

⦁ Your KRA PIN and your business partner’s.

⦁ The Business’ physical address

But ka unataka PIN ya limited company, you’ll need:

⦁ Certificate of incorporation

⦁ Form CR12 (easily downloadable)

⦁ Memorandum and articles of association

⦁ Copies of ID/passport for directors

⦁ KRA PINs of directors

⦁ Registered office address

⦁ Company seal (optional)

Once you’re done with the application, utadownload kitu inaitwa KRA PIN acknowledgment receipt from the same page. Download button utaiona tu. Remember, platform za gava ukua designed with raia ya kawaida in mind, so everything ukua simplified.

Ukishadownload io receipt, fika kwa your nearest KRA office ufinalize application process ndo upewe PIN certificate. If you don’t know how to find the nearest KRA offices, visitii page,type location yako kwa search bar, and hit “Search.” Utapewa exact address plus contacts.

Notice the emphasis on “online?” It’s for a reason: Kuapply online is much faster and more convenient than kufika kwa ofisi.

If you've ever stood in line at any government office in Kenya, you know what I mean. Nishai spend half a day waiting in line to get a permit for my first-ever business (a thrift store). When my turn came after what felt like an eternity, walisema the staff was going for lunch. Two long, frustrating hours later, waliback, only to send me packing ju ya missing signature. A great test of my patience, and one you should learn from — apply online!

Applying for a business permit online si complicated. Process iko ivi:

⒈Log into your eCitizen account, go to the “County Services” section, then uselect county government biz yako itakua— not your home county.

⒉Select the type of permit unataka, fill out all the requested info, then upload supporting documentation. Utakua na all the paperwork you need at this point ju ni the same info they asked for when you registered your business and got it a KRA PIN earlier.

⒊Lipa permit application fee via M-Pesa. The exact amount itadepend na the type of business you’re getting a permit for, so I can’t possibly give you a ballpark figure.

⒋Double-check info yote umeeka plus documentation. Ka kila kitu iko sawa submit application.

Congrats! Ushafanya the hard part. All you need to do now ni ukue unacheck status ya application yako pale eCitizen. Processing time itadepend na the type of permit you’re seeking and which county is handling it — some counties are quicker with it than others.

One more thing: kaa rada ya pre-approval premise inspection. Sometimes (especially with sectoral permits), gava utuma inspectors wasorore place yako ya biz to make sure iko as up-to-standard as you indicated when filling out the application form. Utaona checklist ya business premise standards on one of the application forms, so it should be easy to know which standards your premises must meet.

If everything goes to plan and your permit gets the green light, application status yako itachange from “pending” approved pale eCitizen. Watakunotify pia (kwa phone number/email ulipeana during the application), alafu wakupee instructions za kudownload permit yako and how to display it.

And just like that, utakua umeanza biz yako vilegit.

hat does it for today’s post. Imekua story ingine refu, but I promise you ujawaste time yako ju ngori itakupata ukifungua biz bila permit ni way worse than sitting through a few pages of text.

I hope you enjoyed my little attempts at humor and storytelling. Najua ii si fun topic, so I did my best to make sure you don’t “suffer” any more than you need to when reading about this kind of stuff.

All the best in your entrepreneurial journey! You’ve got this Kings and Queens 💪.

Oh and one more thing,

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