Kenya
Register a company in Kenya in 3–7 days, no minimum capital. Compare EPZ (0% CIT, 10 years), SEZ, and Ltd options.
Foreign Ownership Eligibility
Kenya welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in most sectors — no local partner required under the Companies Act 2015
- No minimum paid-up share capital required for private limited companies
- Single-member company permitted — one foreign national can be sole director and sole shareholder
- Kenya registered office address required (a registered agent or virtual office address is acceptable)
- Foreign directors' and shareholders' documents must be certified — apostille requirements depend on origin country
- Non-citizens cannot own freehold land in Kenya — leasehold only (up to 99 years) under Article 65, Constitution of Kenya 2010
- Certain sectors are restricted — verify against KenInvest's restricted sectors list at invest.go.ke before incorporating
Ownership
100% Foreign OK
Formation
100% Remote
Note
Physical presence is NOT required to incorporate a Kenya company — the eCitizen BRS registration process is fully online. However, opening a corporate bank account typically requires an in-person visit by a director or an authorised representative. No major Kenya bank currently offers fully remote corporate account opening for new foreign-owned companies. Factor this step into your setup timeline.
Tax at a glance
Kenya Tax Overview
30%
Standard corporate income tax
Applies to resident companies and non-resident branches/permanent establishments; calendar year assessment
0%
EPZ enterprise CIT — years 1–10
Export Processing Zone enterprises; must export majority of production; rate rises to 25% for years 11–20. Source: PwC Kenya, December 2025
10%
SEZ enterprise CIT — years 1–10
Special Economic Zone enterprises; 15% for years 11–20; 0% VAT on supplies into SEZ. Source: PwC Kenya, December 2025
15%
NIFCA-certified startup CIT — years 1–3
Finance Act 2025; rate rises to 20% for years 4–7. NIFCA certification required from the Nairobi International Financial Centre Authority
16%
Value Added Tax (VAT)
Standard rate on taxable goods and services; mandatory registration if annual turnover ≥ KES 5 million; monthly filing via iTax
15%
WHT on dividends — non-resident
Standard withholding tax rate; reduced rates available under 15 active DTTs; dividends from SEZ enterprises are WHT-exempt. Source: PwC Kenya WHT, December 2025
15%
Capital Gains Tax (CGT)
On disposal of property and private company shares; reduced to 5% for NIFCA-certified transactions on investments ≥ KES 3B held for 5+ years. Source: PwC Kenya, December 2025
3%
Significant Economic Presence (SEP) tax
Applies to non-resident digital service providers with no permanent establishment in Kenya; charged on gross income
15
Double Tax Treaties in force
Treaty partners include Canada, France, Germany, India, Iran, South Korea, UAE, UK, and Zambia. Full list: taxsummaries.pwc.com/kenya
KES 5M
VAT registration threshold
Annual turnover of KES 5 million or more triggers mandatory VAT registration; digital marketplace non-residents are not subject to this threshold
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership is permitted in most sectors under Kenya's Companies Act 2015. A single foreign national can be the sole shareholder and director of a Kenya Private Limited Company — no local partner required.
No statutory minimum share capital for private limited companies. Kenya's Companies Act 2015 removed this requirement entirely — a company can be incorporated with KES 1 in nominal capital.
Company registration is fully online via the eCitizen BRS portal (businessregistrationservice.go.ke). A straightforward Private Limited Company can be incorporated in 3–7 business days with no mandatory visit to a government office.
EPZ enterprises pay 0% corporate income tax for the first 10 years, then 25% for years 11–20. Customs duty and VAT exemptions apply on EPZ-approved imports. Condition: the majority of production must be exported. Source: PwC Kenya, December 2025.
SEZ enterprises pay 10% corporate income tax for the first 10 years, then 15% for years 11–20. Supplies into the SEZ attract 0% VAT. Dividends paid by SEZ enterprises are exempt from withholding tax. Source: PwC Kenya, December 2025.
NIFCA-certified startups pay 15% CIT for years 1–3 and 20% CIT for years 4–7 under Finance Act 2025.
Kenya has 15 Double Taxation Treaties in force, covering Canada, France, Germany, India, UAE, UK, and South Korea, among others. Treaty rates reduce withholding tax on dividends below the standard 15% for qualifying residents. Source: PwC Kenya WHT, December 2025.
Kenya is a member of the East African Community Customs Union, providing a common external tariff and free movement of goods with Tanzania, Uganda, Rwanda, Burundi, South Sudan, and DRC — a combined market of over 300 million people.
Kenya's legal system is based on English common law. Contract enforcement, intellectual property protection, and commercial dispute resolution mechanisms are familiar to investors from UK, US, Indian, and other common law jurisdictions.
Companies investing KES 1 billion or more in qualifying capital projects located outside Nairobi and Mombasa counties are entitled to a 150% investment deduction. Source: Finance Act 2022, PwC Kenya Tax Credits, December 2025.
Nairobi has 40+ licensed commercial banks, the Nairobi Securities Exchange (NSE), and the Nairobi International Financial Centre (NIFC). Foreign-owned companies can access local corporate banking, trade finance, and capital markets.
Considerations
The standard corporate income tax rate is 30% — higher than Rwanda (28%), and materially above EPZ (0%), SEZ (10%), and NIFCA startup (15%) regimes. Without qualifying for a special regime, the CIT burden is significant by regional standards.
Non-citizens cannot own freehold land in Kenya. Article 65 of the Constitution of Kenya 2010 restricts non-citizen land ownership to leasehold of up to 99 years. This directly affects business models involving real estate, agricultural land, or physical asset ownership.
The compliance calendar is demanding: VAT (monthly), PAYE (monthly), plus NSSF, SHIF, Affordable Housing Levy (AHL), NITA, Railway Development Levy, and Import Declaration Fee filings. An experienced local accountant is effectively mandatory to avoid penalties.
Initial corporate bank account opening typically requires in-person attendance by a director or an appointed representative. No major Kenya bank currently offers fully remote corporate account opening for new foreign-owned companies.
The Kenyan Shilling (KES) has experienced periodic depreciation against the USD and EUR. Profit repatriation must comply with Central Bank of Kenya forex regulations. Unhedged KES exposure carries devaluation risk.
EPZ and SEZ registration requires approval from the EPZ Authority or SEZ Authority respectively, adding 30–60 days to the setup timeline. Both regimes carry ongoing compliance obligations tied to export volumes or SEZ-designated activities.
Structural Comparison
Private Limited Company (Ltd)
Branch of a Foreign Company
EPZ Enterprise
SEZ Enterprise
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Free consultation with XBandGlobal specialists to confirm the right entity structure — standard Private Ltd, EPZ enterprise, SEZ enterprise, or NIFCA-certified startup. This step includes a sector restriction check against KenInvest's restricted sectors list and a review of realistic timelines and costs.
Search and reserve your company name on the eCitizen BRS portal (businessregistrationservice.go.ke). Name availability is verified against the BRS register in real time; a successful reservation holds the name for 30 days while incorporation documents are prepared.
Prepare incorporation documents: Memorandum and Articles of Association, Form CR1 (application and director consent), Form CR2 (statement of nominal share capital), and confirm the Kenya registered office address. Foreign directors and shareholders must provide certified passport copies and proof of address.
Submit the complete incorporation package and pay the registration fee (approximately KES 10,650 for a company with up to KES 100,000 nominal capital — verify current fee schedule at businessregistrationservice.go.ke) via eCitizen. XBandGlobal's Kenya-based partner handles the submission on your behalf.
The Business Registration Service (BRS) reviews the application and issues the Certificate of Incorporation — typically within 1–5 business days for complete online submissions. A digital certificate is issued to the company's registered email address.
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government registration fees in Kenya are low — the BRS incorporation fee is approximately KES 10,650 (around USD 82). The real cost is professional services: legal formation assistance, annual accounting, and statutory audit. For EPZ or SEZ registration, specialist consultants are required, adding USD 1,000–3,000 to setup costs. Total estimated setup cost: USD 500–2,500. Total estimated ongoing annual cost: USD 1,000–4,000. USD estimates use approximately KES 130/USD — verify the current Central Bank of Kenya rate before budgeting.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Kenya setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Kenya. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| KCB Group | Local commercial bank | Low (Visit Required) | Largest bank in Kenya by assets. Comprehensive corporate banking division covering trade finance, forex, and business lending across East Africa. In-person KYC required for initial corporate account opening. |
| Equity Bank Kenya | Local commercial bank | Low (Visit Required) | Wide branch network across Kenya and the EAC region. Known for accessible onboarding processes relative to other Kenya commercial banks. In-person visit required. Well-suited for companies with regional EAC operations. |
| Standard Chartered Kenya | International commercial bank | Low (Visit Required) | Preferred by multinationals and larger foreign-owned companies. Strong trade finance, treasury, and cross-border transaction capabilities. Thorough AML/KYC process; expect a longer onboarding timeline. In-person visit required. |
| Co-operative Bank of Kenya | Local commercial bank | Low (Visit Required) | Competitive for SMEs and mid-size corporate clients. Broad product range including USD and EUR accounts, online banking, and trade finance. In-person KYC required for new corporate accounts. |
Frequently Asked
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