How to Start a Business in Nairobi

As the country’s capital city, Nairobi is undeniably one of the best places to start a business in Kenya. However, starting a business in this commercial hub can be challenging without the know-how or networking on how to go about the process.

If you are wondering how to start a business in Nairobi you are in the right place. We have done extensive research to bring you the due process on how to get your business up and running in the vibrant Nairobi city.

Essential Considerations Before Starting A Business in Nairobi

Embarking on a journey to start a business in Nairobi can be slightly complex. While the city is famous as a commercial hub, navigating the challenges of its business landscape requires a rigid plan.

 

Here are things you must know before starting a business in Nairobi:

• Which laws govern the industry your business operates: sectors such as food, gambling and liquor industry are known to be more demanding compared to others in terms regulations.
• Do you posses all the vital documents: KRA PIN and NHIF are some of the basic legal requirements for starting a business in Kenya that you can’t get started without.
• Does your business need to be registered: starting an online business is way different from owning a physical shop. The former might not require registration with Nairobi City Council. Take time to understand the legal requirement of starting a business in Kenya before getting started.
• Back up Plan: Not all business will pick up immediately in Nairobi. It can be difficult for startup business in Kenya to penetrate the market. As such, you would need a back up plan before your business starts to generate some profit.

How to Start a Business in Nairobi

In case you are set to start a business in Nairobi here is the procedure to follow to get you started and avoid any failure or the possible interruptions by the notorious Nairobi City Council:

1. Do a Careful Analysis of the Market
   

If you want to establish a successful business in Nairobi, then conducting a thorough market research is inescapable. Research puts you in a pole to understand your target customer segment, level of competition and potential pitfalls.

 

 

Exploring the nook and cranny of Nairobi business community can be a mind-numbing task. But there is no need to raise an alarm because we have gone into Nairobi market and brought you brilliant ideas such as the most profitable businesses to start in Kenya.

Startup business in Kenya is a precarious issue if you move blindly. As such, to avoid the heart wrenching losses it is important to consult an experienced person on how to maneuver certain markets in Nairobi.

It is through research we have identified some mouthwatering business ideas to start with small capital such as Pima weight, small barbershop, lunch delivery and popcorn business.

2. Business Name Registration

After you have researched and chosen your unique business name it is time to register it with Kenyan government. How to register a business in Kenya should not intimidate you since it is a plain sailing. There are two ways you can register your business name in Kenya:

• Online Registration: Log in or create an eCitizen account and click business registration service button
• Physical Registration: Visit any Huduma Centre located in City Square.

Starting a business in Kenya as a foreigner also requires one to register with eCitizen portal to acquire the company registration documents.

Alien ID serves as identification for foreigners who want to start business in Kenya. Exceeding a three month stay in Kenya requires one to register for aliens and acquire registration that will come in handy during business name registration.

You may also read: Businesses to start with 100k in Kenya

3. Obtain a Business Permit

There several legal requirements to start a business in Nairobi to avoid skirmishes with the stubborn local authorities. How to go about acquiring business permit in Nairobi heavily relies on the type of business you are starting.

The requirement to get business permit in Nairobi include:

• Registered company name
• Physical address of the business
• A national ID/Passport Number
• Pin certificate
• Business identification Number

There are two ways you can apply for business permit in Kenya:

• Online Application: Visit Nairobi eServices Portal to apply
• Physical Application: visit KRA offices located at Times Tower, Nairobi

4. Registration with KRA

Registration with KRA is another legal requirement for a starting a business in Nairobi. This process can be achieved online by visit itax.kra.go.ke.

It is vital to register with Kenya Investment authority and Nairobi City Council. These are the bodies responsible for business permits, food handling certificates, county fees and city parking.

These documents are essential to avoid unannounced business interruptions by the Nairobi City Council officers.

Kindly note the above process is the same for someone starting a business in Kenya as a foreigner. The only difference is that you will require to provide passport instead of Kenyan ID.

5. Registration with NHIF

If your business will have employees then it is legal requirement for them to register with NSSF, NHIF and KRA. During the NHIF employer application eRegulations Kenya does provide NHIF employer’s code to spare you the hassle of going through the process twice.

6. Launch the Business and Ensure Continued Compliance

At this point the process of starting a business in Nairobi has run its course, it is time to loosen up and get ready to reap where you sow.

However, to avoid any undesirable skirmishes with Nairobi City Council stay complaint with all regulatory requirements such as license renewal, filing returns and fulfilling KRA obligations.

Why Start a Business in Nairobi?

Starting a business in Nairobi present several opportunities that are intriguing for even startups. Here are some of the reasons you might consider starting a business in Nairobi.

• Relatively Easy to penetrate the market for startups: If you are concerned of which business to start with 10K then Nairobi presents you an opportunity to get started and thrive. Whether it is a mitumba outlet, barbershop, ice cream or home salon do not be scared you will have a piece of the cake in Nairobi.

• Government Support: Starting a business in Kenya as a foreigner has rendered easier by Kenyan government initiative to attract foreign investors. Moreover, they are limited legal requirements for starting online business in Kenya. As such, Nairobi is the city to offer peace and calm as you about your online endeavors.
• Low Startup Costs: Compared to other major cities in East Africa starting a business in Nairobi is relatively cheaper. Even with a limited budget you can get access to numerous income generating opportunities (read more) most profitable business in Kenya to start with 100K. If you wondering on how to start a business in Kenya with small capital, then Nairobi city is your safe haven.
• Large pool of employees: with unemployment relatively high in Kenya you can rest assured to get skilled workers in Nairobi is not an uphill task. What a better way to start a successful business that hire skilled workforce.
• Diversified market: are you searching on how to start a business in Kenya with small capital, Nairobi caters for your need. With a population of over 5 million the city hosts diversified customer segments that suits even startups.