Founders usually budget for the registration fee and nothing else. In practice the first year of a Nairobi business carries a series of small, unavoidable costs, and missing one of them is what causes trouble later.
The registration stack
Everything below happens on eCitizen and the Business Registration Service, and the sequence matters — the county permit and bank account both depend on documents produced earlier in the chain.
- Name search and reservation on the BRS portal
- Business name registration for a sole proprietorship, or company incorporation for a limited company
- KRA PIN registration for the entity and confirmation of directors' PINs
- Nairobi County single business permit, priced by activity, premises size and location
- NSSF and SHA (SHIF) employer registration once you hire
- Sector licences where applicable — food handling, NCA, tourism, health and others
Sole proprietorship or limited company?
A business name is cheaper and faster, but it offers no separation between you and the business, and most corporate clients will not contract with one for meaningful work.
A limited company costs more to set up and carries annual return obligations, but it limits liability, makes it possible to bring in shareholders and is usually a precondition for tenders and bank facilities.
The recurring costs founders forget
Annual returns to the Registrar, an annual county permit renewal, monthly PAYE and statutory remittances once staff are on the payroll, and bookkeeping. None are large individually; together they are the running cost of staying compliant.
A sensible first-year sequence
Register the entity, obtain the PIN, open the bank account, secure the county permit, then register as an employer only when you actually hire. Registering for obligations you do not yet have simply creates returns you must keep filing.
Frequently asked questions
- How long does company registration take in Kenya?
- With clean documents, name reservation and incorporation typically complete within a few working days on the BRS portal.
- Do I need a county permit if I work from home?
- Nairobi County generally requires a single business permit for trading activity regardless of premises, though the fee band depends on the activity and size.