How to Register a Company in Kenya as a Foreign Investor (2025 Step-by-Step Guide)

Registering a company in Kenya as a foreign investor is straightforward when you understand the process. This guide walks you through the 2025 requirements, costs, and timeline for establishing your Kenyan entity.

Overview: What Structures Are Available to Foreigners

Foreign investors in Kenya typically choose from three main business structures:

1. Private Limited Company (PLC)

The most common structure for foreign investors. A PLC is a separate legal entity with limited liability protection. It requires at least one shareholder and one director. Foreigners can own 100% of shares in most sectors.

2. Branch of a Foreign Company

Suitable for companies wanting to extend their existing operations into Kenya without creating a separate legal entity. The parent company remains liable for branch obligations.

3. Limited Liability Partnership (LLP)

A hybrid structure combining partnership flexibility with limited liability. Less common for foreign investors but useful for professional services firms.

Private Limited Company Registration — Step by Step

Company registration in Kenya is done through the eCitizen Business Registration Service (BRS). Here is the complete process:

Step 1: Create an eCitizen Account

Visit ecitizen.go.ke and create an account. Foreign investors will need:

• A valid passport
• An email address
• A Kenyan phone number (or foreign number with international access)

Step 2: Name Search and Reservation

Conduct a name search to ensure your desired company name is available. You can propose up to three names in order of preference. The system checks against existing registrations and reserved names. Cost: Approximately KES 150 per name search.

Tips for name approval:

• Avoid names similar to existing companies
• Do not use trademarked terms without permission
• Keep it simple and distinctive

Step 3: Prepare Required Information

Before filing, gather the following:

• Company name (approved)
• Registered office address in Kenya (can be a virtual office initially)
• Nature of business (at least one activity from the standard list)
• Details of directors (name, nationality, passport number, email, phone)
• Details of shareholders (can be same as directors)
• Share structure (number of shares, nominal value)

Step 4: File Registration Documents

Complete the online registration forms through BRS. The system will generate:

• Form CR1 (Application for Registration)
• Form CR2 (Memorandum of Company with Share Capital)
• Form CR8 (Particulars of Directors and Secretary)
• Statement of Nominal Capital

Step 5: Pay Registration Fees

Registration fees are based on nominal share capital:

• Up to KES 100,000: KES 10,650
• KES 100,001 - 500,000: KES 15,650
• Above KES 500,000: Progressive rates apply

Step 6: Receive Certificate of Incorporation

Upon approval, you will receive:

• Certificate of Incorporation
• CR12 (Company registration details)
• Memorandum and Articles of Association

KRA PIN Registration for Foreign Directors

All directors must have a Kenya Revenue Authority (KRA) PIN. Foreign directors register for a non-citizen PIN:

Requirements:

• Valid passport copy
• Passport-size photograph
• Tax compliance certificate from home country (if applicable)
• Letter of introduction from the company

The KRA PIN registration for non-citizens can take 2-4 weeks and often requires physical submission to KRA offices or assistance from a local agent.

Local Representative / Nominee Director Requirement

While Kenyan law does not strictly require all companies to have a local director, practical challenges arise for 100% foreign-owned entities:

• Bank account opening: Most Kenyan banks require at least one signatory with a local KRA PIN and presence
• KRA compliance: A local representative simplifies ongoing tax matters
• Government relations: Local presence helps with regulatory interactions

Many foreign investors appoint a nominee director or local representative to satisfy these practical requirements. BaseKenya provides this service from $99/month.

Costs and Timeline Summary

Item	Cost (KES)	Timeline
Name search	150	Instant
Company registration	10,650+	3-7 days
KRA PIN (foreign director)	0 (DIY) or agent fees	2-4 weeks
Bank account opening	Varies by bank	2-4 weeks
Business permit (if required)	Varies by county	1-2 weeks

Common Mistakes and How to Avoid Them

Mistake 1: Insufficient Share Capital

While there is no legal minimum, banks and some regulators expect reasonable share capital. Consider KES 100,000 - 500,000 as a practical minimum for credibility.

Mistake 2: Poorly Drafted Object Clause

The nature of business declared during registration determines what activities you can legally undertake. Be comprehensive to avoid needing amendments later.

Mistake 3: Ignoring Ongoing Compliance

Registration is just the beginning. Annual returns, tax filings, and license renewals are mandatory. Factor in accounting costs from day one.

Mistake 4: Using Personal Address as Registered Office

Using a residential address can create privacy and practical issues. Consider a registered office service for professionalism.

Where BaseKenya Fits In

BaseKenya supports foreign investors throughout the company registration process and beyond:

• Registration support: We can guide you through the eCitizen process or handle registration on your behalf
• Nominee director service: Qualified local director from $99/month
• Registered office: Professional business address for your company
• KRA compliance: Tax registration, monthly filings, and annual returns from $39.99/month
• Bank account support: Assistance with corporate account opening

Starting your Kenya expansion? Book a free consultation to discuss the best structure for your situation and receive a written cost summary.