The usual vehicle for a foreign investor in Kenya is a locally incorporated private limited company, registered online with the Business Registration Service (BRS) through eCitizen. The official fee is KES 10,650 and registration takes about 3 to 5 days. The law sets no minimum share capital for a limited company, but both the investment certificate and the Class G work permit use USD 100,000 of investment as the threshold.
What usually trips up Chinese traders is not registration but the Trade Licensing Act’s limits on foreigners in retail and certain goods, work permit costs, and tax and labour compliance. The sections below go through them in order.
Business structures
The MOFCOM guide lists five forms used by foreign investors: locally registered company, branch of a foreign company, partnership, sole proprietorship and limited liability partnership [1].
| Form | Key points |
|---|---|
| Private limited company | Separate legal entity; shareholders liable up to their shares; no public share offers, maximum 50 members; name must end in “Limited” or “Ltd” [1][2] |
| Public limited company | May offer shares to the public; no minimum or maximum number of members [1] |
| Branch of a foreign company | Registered with BRS, which issues a Certificate of Compliance [3] |
| Partnership, sole proprietorship | For small operations, registered as a business name [1][3] |
Small companies (meeting any two of: turnover below KES 50 million, net assets below KES 20 million, 25 employees or fewer) do not have to file annual financial statements with the registrar [1].
Foreign investment thresholds and restricted areas
The USD 100,000 threshold
The Investment Promotion Act sets a minimum foreign investment of USD 100,000 [1][5]. Business Daily reported in March 2024 that, under current law, applying to the Kenya Investment Authority (KenInvest) for an investment certificate is optional; a parliamentary trade committee proposed making it mandatory, which would need Parliament’s approval [5]. The MOFCOM guide says foreign investors must be approved by KenInvest [1]. Because the two sources differ, confirm with KenInvest before you start. Separately, a Class G work permit requires proof of at least USD 100,000 of capital [7].
Trade Licensing Act: retail and specified goods
According to the MOFCOM guide, the Trade Licensing Act lists about 70 specified goods foreign investors may not deal in without special authorisation, and foreigners may trade only in “general business areas”, including parts of Nairobi, Mombasa, Nakuru, Kisumu, Eldoret and Thika; trading outside them needs special authorisation [1].
Retail is sensitive. In January 2023 the Chinese-owned discount store China Square opened in Nairobi, prompting protests from local traders and threats by the then trade minister to deport foreigners in retail; the store closed temporarily in February 2023 [6]. By August 2025 it was reported to have branches in malls in Nairobi, Mombasa and Kisumu [6]. Before going into retail, have a lawyer check whether your goods and location are restricted.
Sector ownership limits
- Foreign ownership of insurance and telecom companies was capped at 66.7% and 70%; in July 2015 the Treasury announced the removal of foreign ownership limits on listed companies except in strategic sectors, without defining them [1].
- Foreign companies may hold no more than 49% of voting shares in a fishing company [1].
- Companies granted mining licences after the 2016 Mining Act must give the government a free 10% stake [1].
- Projects affecting environment or health, excisable goods, forestry, energy and petroleum need prior approval from the relevant authority before registration [1].
- Manufacturing companies must notify the Kenya Bureau of Standards (KEBS) after registration [1].
On land, agricultural land may not be transferred to foreigners or non-resident companies except with presidential exemption; foreign investors can lease land for up to 99 years [1].
Registration steps
- On BRS via eCitizen, search and reserve the name and file for registration to receive the certificate of incorporation and the CR12 list of shareholders and directors [1][2]. The fee for a private limited company is KES 10,650 (3 to 5 days); for a foreign company, KES 7,550 [3] (as of October 2026). Payment by mobile money or card [3].
- Obtain a tax PIN from the Kenya Revenue Authority (KRA) [1].
- Register as an employer with the NSSF and the health insurance scheme [1]. Since October 2024 the Social Health Insurance Fund (SHIF) has replaced the NHIF [1].
- Get a Unified Business Permit from the county government; the MOFCOM guide puts it at about USD 150 [1].
- Apply for sector licences, such as import/export trade licences [1].
The MOFCOM guide estimates the whole process at 7 to 12 days [1]. Work permits for foreign staff come next; see Kenya visas and work permits.
Tax basics
| Tax | Rate |
|---|---|
| Corporate income tax | 30% (resident companies and permanent establishments) [1] |
| Personal income tax | 10% to 35%, progressive [1] |
| VAT | Standard rate 16% [1] |
| Turnover tax (TOT) | 1.5% of gross sales from 1 July 2023, for turnover of KES 1 million to 25 million a year; not available to non-residents [4] |
| Significant Economic Presence Tax | 3% of turnover from digital sales by foreign companies (Tax Laws (Amendment) Act 2024) [1] |
| Customs duty | EAC Common External Tariff, 0%, 10%, 25%, 35% and others [1] |
Note: the MOFCOM guide still gives turnover tax as 3% [1]. That is out of date; use the 1.5% published by KRA [4]. The China–Kenya double taxation agreement signed in 2017 and the 2001 bilateral investment treaty are not yet in force [1].
Labour costs
In 2024 the minimum monthly wage for a general worker in Nairobi, Mombasa, Kisumu and other large towns was KES 16,114 [1]. Employer and employee each pay 6% of monthly pay to the NSSF (capped at KES 4,320 per person per month), plus 2.75% of income for SHIF [1]. Dismissals must follow the written-warning procedure, and termination needs one month’s written notice or one month’s pay [1].
Special Economic Zones and Export Processing Zones
| SEZ | EPZ | |
|---|---|---|
| Authority | Special Economic Zones Authority (SEZA) | Export Processing Zones Authority (EPZA) |
| Corporate tax | 10% for the first 10 years, 15% for the next 10 [1] | Exempt for 10 years, then 25% [1] |
| Other | Exemptions from import duty, VAT, stamp duty and more; work permits for up to 20% of full-time staff [1] | Duty- and VAT-free inputs for export production; licence application about USD 250, licence fee USD 1,000 a year [1] |
Public SEZs are Naivasha, Konza Technopolis and Dongo Kundu in Mombasa; the main private SEZ is Tatu City, where several Chinese companies operate [1]. The Chinese-invested Pearl River SEZ in Eldoret broke ground in July 2017 [1]. At the end of 2024 Kenya had 105 EPZs, the largest at Athi River, with about a dozen Chinese firms mainly in garments, cement and plastic bottle caps [1].
Banking and foreign exchange
Kenya has no exchange controls. Profits can be repatriated freely and expatriates can remit after-tax income in full; travellers carrying over USD 5,000 in foreign currency must declare it to customs [1]. Standard Bank (Stanbic) Kenya and Citibank Kenya offer RMB accounts, Equity Bank works with UnionPay, and Bank of China opened a representative office in Nairobi in 2012 [1]. At the end of December 2024 the rate was about KES 129.37 to USD 1 [1].
Chinese business associations and the embassy commercial office
- Kenya China Economic and Trade Association: founded 2001, 105 members, mostly state-owned contractors; email kceta2012@gmail.com [1].
- Kenya Overseas Chinese Association: 15th floor, Postbank House, Nairobi; tel. +254-20-8014333 [1].
- Economic and Commercial Office of the Chinese Embassy: tel. +254-20-2722559, email ke@mofcom.gov.cn, website ke.mofcom.gov.cn [1].
For associations and daily life, see the Chinese community in Kenya.
Common pitfalls
- Doing business on an eTA: your entry status does not allow it. Get a Class G or D permit first.
- Bribery: the Bribery Act took effect in January 2017, with fines of up to KES 10 million or 10 years in prison, and offending companies can be barred from government contracts for up to 10 years [1].
- Late government payments: the guide notes tight public finances and arrears on contractor payments [1].
- Local procurement reservations: a procurement amendment passed by the National Assembly in November 2024 would reserve contracts under KES 1 billion for local firms; it was still before the Senate when the guide was written [1].
- Currency swings: the shilling fell to 156.46 per US dollar at the end of 2023 [1]. Leave a margin in contract pricing.
- Security: robbery and theft are common; for precautions at shops and sites see the Kenya safety guide.
For comparison within East Africa, see registering a company in Tanzania.
References
- Country Guide for Outward Investment and Cooperation: Kenya (2025 edition) (PRC Ministry of Commerce, 2025)
- Companies Registry (Business Registration Service (BRS), accessed October 2026)
- Fee Schedule – Companies Registry (Business Registration Service (BRS), accessed October 2026)
- Turnover Tax (TOT) (Kenya Revenue Authority (KRA), accessed October 2026)
- MPs want foreigners to get permits before investing (Business Daily, 19 March 2024)
- Story of the businessmen behind Kenya’s famous China Square (The Kenya Times, 17 August 2025)
- Class G: Specific Trade, Business or Consultancy (Directorate of Immigration Services, accessed October 2026)