How To Start A Business In Kenya
Kenyan Government has formulated policies, laws, and regulations that have put Kenya as the most preferred economic hub in Africa, especially Sub Saharan Africa. Starting a business in Kenya is less cumbersome as measures have been put up in place to ensure the process is seamless and takes a shorter time. If you are not sure of how to start a business in Kenya, this guide will give you the step by step process.
Do a market survey
It is crucial for any entrepreneur to do a market survey to identify market trends and dynamics. The market assessment will give you an idea on if the business you have in mind is viable.
Write a business plan
A business plan will lay down the business goals, objectives, how to achieve them, and how to tackle challenges encountered. It is a master plan on how to carry out operations, finance, and marketing functions in line with the objectives within the specified timeline.
If you don’t have the professional capabilities in the industry you want to venture into, get someone who does on board. This could be a lawyer, business expert, or a mentor. This will limit the chances of making business mistakes that could have been avoided.
Get a Business Location
It is essential to choose a business premise that is strategic, secure, easily accessible to clients, and above all, cost-effective. The market survey carried out will guide you on the most suitable location. If you plan to have a virtual office, you may not need a physical located. It is, however, essential to hire a place where you can conduct meetings with investors, especially if you can’t visit their offices. Board room hire is paid for on an hourly basis, which is a current trend in Kenya for virtual businesses.
Finance your business
Business finances could be from one’s savings, bank loans, Sacco loans, or from family and friends. Have adequate cash flow for initial setup and a reserve amount for any unanticipated incidences. It is crucial to allocate and spend the finances as per the business plan. A solid plan will limit the misappropriation of funds.
You should determine the legal structure of the business. This could be a sole proprietorship, corporation, or limited company. Business registration is done through the E- Citizen portal, which is a government service. Create an account using your National Identification Card. Check if your business name is available for use and pay for the certification. The process should take 2-4 working days. Once you have these document, acquire a business permit from the country you will be operating.
Register with KRA
It is statutory to remit tax deductions to the Kenya Revenue Authority, so make sure you have a Personal Identification Number (PIN). Noncompliance will lead to hefty penalties or even legal battles, which will cost you more than the taxes you would have paid.
- Hire Staff
If you have been wondering how to start a business in Kenya, you will be happy to know that this is the implementation stage, where the rubber meets the road. You will either hire staff stuff to support your operations or go solo if you can manage it for a while. It is essential to clearly understand the laws and regulations in the Labor Laws and Acts.
Knowing how to start a business in Kenya is one thing, but having the skills to run and manage your business is another. Before you lose your hard-earned capital, invest in our business mastery class, and equip yourself with the skills you need to run and operate a business in Kenya