How to Get a Business Permit in Kenya: A Practical Guide

Introduction

Getting a business permit is a key step to operating legally in Kenya. In most counties, this is issued as a Single Business Permit (SBP), which combines several local licenses into one annual permit. This guide outlines the typical steps, documents, costs, and renewal tips to help you navigate the process.

What is a Single Business Permit (SBP)?

A Single Business Permit is the standard annual license issued by county governments that authorizes a business to operate within a county. It usually combines the local business license, trading permit, and compliance with certain local regulations into one certificate. The exact scope can vary a little from county to county, so it is wise to check your county’s requirements.

SBP coverage

Most SBPs are valid for one year and must be renewed before the expiry date. The permit may also come with conditions related to location, operating hours, or business activity that you must follow.

Who issues it?

SBPs are issued by the county government where your business operates. In major cities like Nairobi, you may use the city or county portal; in other counties you will use the respective county government’s system or office.

Do you need a SBP?

For most formal businesses, a SBP is the standard license needed to operate legally within a county. This includes registered companies, partnerships, and sole proprietors. Some informal traders or market vendors may only require a market license or a county market permit, depending on local rules. Always verify with your county business licensing department to confirm the exact requirement for your business type.

Where to apply

Applications are typically handled by the county government’s revenue or licensing department. Many counties offer online portals where you can apply, upload documents and pay fees. In Nairobi, for example, some steps can be done via the county portal or eCitizen, while other counties use their own portals or in-person submission at designated offices. Check your county’s official website for the correct process.

Online vs in-person

Online applications are common and convenient, but some counties may require in-person submission for verification of documents or to collect the permit physically. Always follow the instructions published by your county.

Required documents

Common documents you may need include:

• Copies of ID or passport for the business owner or directors
• Tax PIN (and VAT registration if applicable)
• Certificate of Registration or Incorporation (for companies) or Business Name registration (for sole proprietors/ Partnerships)
• Physical address proof for the business premises (lease agreement, utility bill, or rate notice)
• Details of the business activity and proposed trading location
• Passport photos for owners or directors
• Any sector-specific licenses or approvals if required by your county (for example health, safety, or environmental clearances)

Examples by business structure

• For Sole Proprietors/ Partnerships: ID copies, business name registration, PIN, location proof, business activity details.
• For Companies: Certificate of Incorporation, CR12, directors IDs, PIN, business address, and KRA/VAT details.

The application process

1. Confirm your county requirements and the correct SBP category for your business.
2. Create an account on the county portal (or prepare the in-person submission package).
3. Fill out the SBP application form with your business details.
4. Upload the required documents and any supporting papers.
5. Pay the applicable SBP fees through the portal or designated payment channels.
6. Submit the application and await processing; you will receive the SBP by email or download it from the portal when approved.
7. Display the SBP at your business premises as required.

Fees and payment

SBP fees vary widely by county and by business category. They are typically paid to the county government and may be published as a rate card on the county portal. Some counties offer reduced rates for small or micro businesses. Always check the latest fee schedule in your county’s official portal and ensure you pay the correct amount to avoid delays.

Renewal and compliance

SBPs are usually renewable on an annual basis. Keep track of expiry dates and renew on time to avoid penalties or temporary closures. Compliance checks or inspections may occur periodically, so maintain good records and ensure your business details remain up to date in the county system.

Tips to avoid delays

• Gather and convert documents to digital copies before you apply.
• Verify the correct SBP category and business activity codes to avoid rework.
• Ensure your business name, location, and owner details are consistent across registration documents and the SBP application.
• Start early and allow time for potential follow-ups or document requests from the county.
• Confirm payment methods and keep receipts or confirmation numbers.

Common issues and FAQs

Q: Do I need an SBP to start operating? A: For most formal operations, yes, as it is the standard local license required by the county. Some markets or informal settings may have different requirements.

Q: Can I operate before the SBP is issued? A: Operating before the SBP is issued can violate county rules. Check the official guidance from your county and plan accordingly.

Q: How long does the process take? A: Processing times vary by county and the completeness of your submission. Plan for a few days to several weeks in some cases.

If you want the most accurate, up-to-date details, consult your county’s official licensing portal or contact their offices directly.