Are you a foreigner wondering on Starting a Business in Kenya as a Foreigner?
Depending on the type of business you plan on starting, be it a sole proprietorship, partnership or a limited company, there might be several requirements needed.
Requirements for a Foreigner to Open a Business in Kenya
- Immigration permits. If you are non-Kenyan planning to conduct any business or trade in Kenya you must have an immigration permit that will enable you to start and run business in the country. o
- Business name for registration. For any business before starting, a business name is required. Name reservations nowadays are done easily online through the e-citizen portal.
- Business license. This is a government permit that will allow you to run business within the government’s geographical jurisdiction.
- KRA registration. A KRA PIN has become one of the most crucial documents in Kenya. You will need it for almost everything in Kenya; starting up a business, buying land, buying a car or even when opening a bank account.
- NSSF. You should register with the National Social Security Fund for safeguarding your employees’ retirement benefits.
- NHIF. The National Hospital Insurance Fund through your monthly premiums helps balance out the cost of your employee’s medical treatment.
With the above requirements, if you are a foreigner you are good to go and start your dream business in Kenya.
How Much Is a Business Permit in Kenya
A business permit is one of the major essentials of any business ran in Kenya. It enables business persons run their business without getting into any trouble with government officers. In addition, it ensures that the business complies with the law.
Application fee for the permit goes for Kshs. 200
Large trader (21-50 employees) Kshs. 20,000
Incorporation of Foreign Companies in Kenya
This is the legal process by which a business entity is well-organized and brought into existence.
The process of incorporation involves writing up a document known as the articles of incorporation and setting fourth the firm’s shareholders.
Here, the assets and cash flows of the business entity are kept separate from those of the owners and investors, which is called limited liability.
Registration of a foreign company in Kenya starts by making an application letter to the Registrar of companies, with it consisting;
- Copy of certificate of incorporation
- Copy of memorandum
- Company Tax Registration Certificate of the existing foreign company.
Other requirements include;
- Alien ID card. This card identifies you as foreign national to the Kenyan government and allows you to access other services like KRA PIN and opening the business’ bank account.
- KRA PIN. For most of the business transactions you will undertake, a KRA PIN is one of the crucial documents that you will require.
- Work permit. This is another major document you must have to start and run a business in Kenya. There are different classes of permits depending on the type of business you want to start. For incorporation of a foreign company, you will be issued with a class G permit which is issued to investors in specific trade, business or consultancy.
- Single entry visa. This is given to single entry to persons whose nationalities require visa to enter Kenya either for business, tourism or medical reasons. It is valid for three months.
How to Settle in Kenya
How would you like moving to Kenya? Maybe for business, adventure or even to settle
Being a Kenyan, I’d say this is the best place I can ever be. Not just for the sake of partriotism but I love my country. Anyway east or west, they say home is the best.
With it’s rise in economy and it’s current blue print of vision 2030 for the future economic growth, you might want to consider starting up a business here. If you are considering adventure, then you got it right.
Kenya is full of many places to please your eyes, say the national parks full of different wildlife, the coast with the white sand, the foods, they will all make you want to stay longer.
If you are in “stay longer” mission, then there are several procedures you’ll have to undertake before moving and settling here;
- Visa. You require a visa to move to Kenya unless you are from a country with Visa exemption.
- Passport.With six months validity.
- Proof of yellow fever vaccination.
Best Investment Opportunities in Kenya
Warren Buffet said Rule no. 1- Never lose money. Rule no. 2- Never forget rule no. 1.
Everyone wants an investment that will give them profit in the future. This will depend on when, where and how to invest. In Kenya, there are several areas you can choose to invest in;
- Agriculture. This has been one of the most lucrative business in Kenya for many years. You may choose to do farming, may be decide to grow cabbages, you may also decide to do livestock farming or even poultry farming.
- Start a blog. Starting from what you are passionate about, you can start a blog from the many blogging platforms available and start making money from it.
- Going back to school. I believe that the greatest investment you can make is investing to yourself. Adding yourself more skills can be one of the staircases to success.
- Coaching programme. Just like going back to school, coaching is another type of long-term investment. It makes you focus on the area you are knowledgeable and passionate about and make money from it.
- Vending machine. With the busy nature of Kenyans, vending machines would really help where one would by buy goods quickly and move on to other things. With machines for things like water, softdrinks, and milk things would be much quicker.
My final recommedation is that, if you are looking for a country to invest in or settle then let Kenya be your first priority. And let it show you how much it has to give.