Doing Business with Kenya

Exporting to Kenya involves several steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Kenya’s import regulations and standards for your product.
   • Check for any product-specific certifications needed.

2. Identify Local Partners

   • Establish relationships with local distributors or agents in Kenya.

3. Prepare Export Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Ensure compliance with Kenyan labeling and packaging requirements.

4. Arrange Logistics and Shipping

   • Choose a reliable shipping company experienced with exports to Kenya.
   • Ensure accurate completion of shipping documents, such as bills of lading.

5. Customs Declaration

   • Work with a customs broker to facilitate the clearance process.
   • Pay any necessary duties and taxes.

6. Understand Duties and Taxes

   • Familiarize yourself with Kenya’s import duties and applicable taxes.

7. Distribution and Sales

   • Establish distribution channels within Kenya.
   • Consider partnerships with local businesses for effective market penetration.

Key Contacts

• Kenya Revenue Authority (KRA)
  • Website: Kenya Revenue Authority
• Kenya Export Promotion and Branding Agency (KEPROBA)
  • Website: KEPROBA

Importing goods into Kenya involves several steps. Here’s a comprehensive guide:

1. Register as an Importer

   • Obtain an Importer’s Code from the Kenya Revenue Authority (KRA).
   • Register with the Kenya Trade Network Agency (KenTrade) for the Single Window System.

2. Classify Your Goods

   • Determine the correct Harmonized System (HS) code to identify applicable duties and taxes.

3. Check Import Regulations

   • Ensure compliance with Kenya Bureau of Standards (KEBS) requirements and any necessary permits or certifications.

4. Find a Reliable Supplier

   • Establish a relationship with a trustworthy overseas supplier.

5. Arrange Shipping and Logistics

   • Choose a reliable freight forwarder.
   • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.

6. Customs Declaration

   • Submit an import declaration form (IDF) through the Kenya TradeNet System.
   • Work with a customs broker if necessary to facilitate the process.

7. Pay Duties and Taxes

   • Calculate and pay applicable import duties and taxes to the KRA.

8. Receive Your Goods

   • Arrange for the transportation of goods from the port to your warehouse or distribution center.

Key Contacts

• Kenya Revenue Authority (KRA)
  • Website: Kenya Revenue Authority
• Kenya Trade Network Agency (KenTrade)
  • Website: KenTrade
• Kenya Bureau of Standards (KEBS)
  • Website: KEBS

Incorporating a company in Kenya involves several steps. Here’s a comprehensive guide:

1. Choose a Company Name

   • Conduct a name search and reserve your company name through the eCitizen portal.

2. Prepare Incorporation Documents

   • Draft the Memorandum and Articles of Association.
   • Prepare identification documents for directors and shareholders.

3. Register with the Registrar of Companies

   • Submit the incorporation documents through the Business Registration Service (BRS) on the eCitizen portal.

4. Pay Registration Fees

   • Costs can range from KES 10,000 to 30,000 depending on the share capital.

5. Obtain a PIN from Kenya Revenue Authority

   • Register for a Personal Identification Number (PIN) for tax purposes.

6. Register for National Social Security Fund (NSSF) and National Hospital Insurance Fund (NHIF)

   • Ensure compliance with statutory employee contributions.

7. Open a Corporate Bank Account

   • Use incorporation documents to open a business account in Kenya.

Costs

• Name Reservation: Approximately KES 150.
• Registration Fees: KES 10,000 to 30,000, depending on share capital.
• Additional Costs: May include legal and consulting fees.

Key Contacts

• Business Registration Service (BRS)
  • Website: BRS
• Kenya Revenue Authority (KRA)
  • Website: KRA
• eCitizen Portal
  • Website: eCitizen

Setting up a manufacturing plant in Kenya involves several steps. Here’s a comprehensive guide:

1. Conduct Market Research

   • Analyze demand, competition, and location advantages in Kenya.

2. Choose a Suitable Location

   • Consider industrial zones for benefits like tax incentives and infrastructure support.
   • Check zoning regulations and obtain necessary permits from local authorities.

3. Incorporate Your Company

   • Register your business with the Business Registration Service (BRS) via the eCitizen portal.

4. Obtain Necessary Permits and Licenses

   • Apply for construction permits and environmental impact assessments from the National Environment Management Authority (NEMA).

5. Secure Financing

   • Explore options through banks, venture capital, or investment partners.

6. Design and Construct the Facility

   • Hire architects and contractors for design and construction.
   • Ensure compliance with local building codes and safety regulations.

7. Install Equipment and Machinery

   • Purchase and set up machinery necessary for production.
   • Ensure safety and operational standards are met.

8. Hire and Train Workforce

   • Recruit skilled labor and provide necessary training.

9. Set Up Supply Chain and Distribution

   • Establish relationships with suppliers and distributors.

10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

• Kenya Investment Authority (KenInvest)
  • Website: KenInvest
• National Environment Management Authority (NEMA)
  • Website: NEMA
• Business Registration Service (BRS)
  • Website: BRS

Registering a trademark in Kenya involves several steps. Here’s a comprehensive guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique and not already registered. Use the Kenya Industrial Property Institute (KIPI) database.

2. Prepare Your Application

   • Include details such as the trademark design, classification of goods/services, and applicant information.

3. Submit the Application

   • File your application with KIPI, either online or in person.

4. Pay the Application Fee

   • Fees vary depending on the number of classes. Initial application fees start at approximately KES 5,000.

5. Examination Process

   • KIPI examines the application for compliance and potential conflicts. Respond to any objections or requests for additional information.

6. Publication and Opposition

   • If approved, the trademark is published in the Industrial Property Journal. A period is provided for third parties to oppose the registration.

7. Registration and Certification

   • If no oppositions arise, the trademark is registered. Pay the registration fee and receive the Certificate of Registration.

8. Maintain and Renew the Trademark

   • Trademarks are valid for 10 years and can be renewed indefinitely. Submit renewal applications to maintain protection.

Costs

• Application Fee: Starts at approximately KES 5,000 per class.
• Registration Fee: Additional fees apply upon successful registration.

Key Contacts

• Kenya Industrial Property Institute (KIPI)
  • Website: KIPI

Resolving commercial disputes in Kenya involves several steps. Here’s a guide on the process:

1. Attempt Negotiation

   • Begin by negotiating directly with the other party to reach an amicable solution.

2. Mediation

   • Engage a mediator to facilitate discussions. Mediation is often quicker and less formal than court proceedings.

3. Arbitration

   • Consider arbitration for a private and binding resolution. The Nairobi Centre for International Arbitration offers services for this process.

4. Seek Legal Advice

   • Consult with a lawyer specializing in commercial law for guidance on your case.

5. File a Lawsuit

   • If other methods fail, file a lawsuit in the appropriate Kenyan court. Prepare necessary documentation and evidence.

6. Court Proceedings

   • Attend hearings and present your case. Follow legal procedures as guided by your lawyer.

7. Judgment and Enforcement

   • If a judgment is made, ensure its enforcement through legal channels.

Costs

• Mediation and Arbitration Fees: Vary depending on the service provider.
• Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
• Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

• Judiciary of Kenya
  • Website: Judiciary of Kenya
• Nairobi Centre for International Arbitration (NCIA)
  • Website: NCIA

When considering doing business in Kenya, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

• Language: English and Swahili are the official languages. Understanding local customs and business etiquette is important.
• Business Etiquette: Building personal relationships and trust is crucial in business dealings.

Political Factors

• Government Structure: Presidential republic with a stable political environment.
• Regulatory Environment: Clear regulatory framework, though navigating bureaucracy can be complex.

Economic Factors

• Open Economy: Kenya has a diverse economy with key sectors like agriculture, manufacturing, and services.
• Corporate Tax Rate: Standard rate of 30%.

Foreign Exchange

• Currency: Kenyan Shilling (KES).
• Exchange Rate: Monitor for fluctuations that can impact pricing and contracts.

Rule of Law

• Legal Framework: Strong legal system with protection for property rights and intellectual property.
• Judiciary: Independent, though legal processes can be lengthy.

Business Environment

• Infrastructure: Developing infrastructure with ongoing improvements in transportation and energy.
• Workforce: Educated and skilled, with a focus on technology and entrepreneurship.

Key Resources

• Kenya Investment Authority (KenInvest)
  • KenInvest
• Kenya National Bureau of Statistics (KNBS)
  • KNBS
• Central Bank of Kenya (CBK)
  • CBK