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FACT SHEET
Kenya
Kenya officially named as the Republic of Kenya and it is a country in the African Great Lakes region of East Africa. Its
capital city is Nairobi. Kenya has a number of tax treaties and investment promotion and protection Agreements.
Kenya is a popular business destination due to its free enterprise economy, and boasts the biggest economy in East
and Central Africa as measured by gross domestic product (GDP).Kenya Investment Authority (KenInvest) is a
statutory body established in 2004 with the main objective of promoting investments in Kenya. It is responsible for
assisting the implementation of new investment projects, offering after care services for new and existing investments.
Company Incorporation in Kenya:
An investor is free to choose to operate their business with either 100% ownership or in partnership
with local investors except in the Insurance, Information and Communication Technology, Air
services and investments in the stock market.
Limited liability companies is prohibited from inviting the general public to subscribe for its shares
and it cannot have more than 50 members excluding persons in employment of the company
A company incorporated outside Kenya may carry on business in Kenya through a branch.
Licensing in Kenya:
Businesses operating in Kenya are typically required to obtain one or more licenses and permits,
depending on the activities of their company. County councils being involved in licensing
Any Kenya Business is exempt from all business license requirement, only EPZ license is required
to do business
Accounting and Tax:
The corporate tax rate is 30% and the Value Added Tax (VAT) rate is 16%
Capital Gains Tax not applicable as this tax is presently suspended in Kenya
Dividends are taxed on a withholding tax basis which is final tax. Expenses are not allowed on the
dividends’ income or any other income of the taxable person. Dividends received by financial
institutions are exempt
Personal tax rate is 10% up to 121,969 Kshs
FACT SHEET
Kenya
Type: Limited Liability Company
Under Kenya law, foreigners can own 100%
Share Capital Min of KES 100,000
Directors Minimum One
Shareholders Minimum Two
Memorandum and Articles of Association Yes
Can the entity hire expatriate staff in Kenya Yes
Secretary Yes
Tax Registration Certificate Required Yes
Statutory audit required Yes
How long to open Corporate Bank Account One Week
Timeframe for Incorporation 8 -10 Weeks
Annual Return Yes
Annual Tax Yes
Access to Kenya double tax treaties Yes
For more details, please contact bc@intuitconsultancy.com
You can also visit www.intuitconsultancy.com

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Doing Business in Kenya

  • 1. FACT SHEET Kenya Kenya officially named as the Republic of Kenya and it is a country in the African Great Lakes region of East Africa. Its capital city is Nairobi. Kenya has a number of tax treaties and investment promotion and protection Agreements. Kenya is a popular business destination due to its free enterprise economy, and boasts the biggest economy in East and Central Africa as measured by gross domestic product (GDP).Kenya Investment Authority (KenInvest) is a statutory body established in 2004 with the main objective of promoting investments in Kenya. It is responsible for assisting the implementation of new investment projects, offering after care services for new and existing investments. Company Incorporation in Kenya: An investor is free to choose to operate their business with either 100% ownership or in partnership with local investors except in the Insurance, Information and Communication Technology, Air services and investments in the stock market. Limited liability companies is prohibited from inviting the general public to subscribe for its shares and it cannot have more than 50 members excluding persons in employment of the company A company incorporated outside Kenya may carry on business in Kenya through a branch. Licensing in Kenya: Businesses operating in Kenya are typically required to obtain one or more licenses and permits, depending on the activities of their company. County councils being involved in licensing Any Kenya Business is exempt from all business license requirement, only EPZ license is required to do business Accounting and Tax: The corporate tax rate is 30% and the Value Added Tax (VAT) rate is 16% Capital Gains Tax not applicable as this tax is presently suspended in Kenya Dividends are taxed on a withholding tax basis which is final tax. Expenses are not allowed on the dividends’ income or any other income of the taxable person. Dividends received by financial institutions are exempt Personal tax rate is 10% up to 121,969 Kshs
  • 2. FACT SHEET Kenya Type: Limited Liability Company Under Kenya law, foreigners can own 100% Share Capital Min of KES 100,000 Directors Minimum One Shareholders Minimum Two Memorandum and Articles of Association Yes Can the entity hire expatriate staff in Kenya Yes Secretary Yes Tax Registration Certificate Required Yes Statutory audit required Yes How long to open Corporate Bank Account One Week Timeframe for Incorporation 8 -10 Weeks Annual Return Yes Annual Tax Yes Access to Kenya double tax treaties Yes For more details, please contact bc@intuitconsultancy.com You can also visit www.intuitconsultancy.com