BUSINESS IN KENYA

Hello,
Me and a friend of mine(Russia) are thinking about starting a hostel(restaurant) business in Kenya, somewhere around Malindi and coming over to the country in the beginning of november for a location study. We've got some knowledge based on the Internet about life in Kenya but we'd like to know the procedure and how difficult is it to start up a busness in there?
Thank you
Sergei.

Hi Sergei,
I too am looking for establishing some small business in an african country. I would request you to pls send me the information that you have
collected so far in this respect.

Also if you know, pls let me know which country in Africa is most suitable to live and business.

Rgds
MUSTAFA
dubai_book at yahoo dot com

Hello Sergei, Mustafa,

Would you also consider Tanzania?

I am the majority shareholder of a safari company in Arusha, organizing safaris, Kilimanjaro climbs and Zanzibar holidays. Besides the headquarter premises in Arusha, including office rooms, store rooms, vehicle workshop and directors' house, our company also owns some plots near national parks for construction of a safari lodge/camp, and beach plots alongside the Indian Ocean for constructing a beach hotel.

I have been living in Tanzania for a long time, but must now return back home in Europe for family reasons. I am therefore looking to sell my shares in the company.

If you are interested, or even in one of the plots, then please contact me.

Peter Wilson

PROCEDURE OF STARTING A BUSINESS IN KENYA

1. Obtaining and the approval for the company name from the Registrar of Companies. This takes about 3 days to complete and cost KES 100 per name reservation; it is important to note that the company name reservation lasts 30 days but can be renewed for a similar period.

2. Stamping of the Memorandum and Articles of Association and Statement of the Nominal Capital. This takes about 14 days to complete and Cost of1% of nominal capital + KES 2,005, stamp duty on Memorandum and Articles of Association

3. Payment of stamp duty at bank. This takes 1 day to complete (included in the previous procedure). It will cost you KES 100 which is the bank commission

4. Declaration of compliance (Form 208) is signed before a Commissioner of Oaths /notary public. This takes 1 day to complete and the cost to complete is KES 200.

5. File deed and details with the Registrar of Companies at the Attorney General's Chambers in Nairobi this procedure takes between14 - 21 days to complete:

6. Register with the Tax Department for a PIN. It takes 1 day complete and at no cost. Registration for a personal identification number (PIN) is required to register for the VAT, the local service tax, and the pay-as-you-earn (PAYE) tax.

7. Register with the VAT office. This free of charge process takes you just a day to complete. The VAT office is in the Times Tower building.

8. Apply for a business permit. It takes 1 day complete: The fee to apply for a business permit varies by type of business, number of employees, and size of the company's premises. The fee is payable to the Nairobi City Council, Licensing Department.

9. Register with the National Social Security Fund (NSSF). It takes 1 day to complete at no cost.

10. Register with the National Hospital Insurance Fund (NHIF). It takes 1 day to complete at no charge.

11. Register for PAYE. It takes 1 day to complete at no charge.

12. Make a company seal after a certificate of incorporation has been issued. It takes 2 days. Cost to complete is between KES 2500 and KES 3500

There may be some restrictions to doing business in Kenya these include:
• Equity restrictions are only in telecommunications sector (a minimum of 30% must be local).
• Investments in the insurance industry must have local participation.
• Ownership of agricultural land by foreigners is restricted.
• Engagement in petty business by foreigners is also restricted.