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Starting a Business16 October 2026 6 min read
How Much Does It Cost to Start a Business in Kenya? Registration, Permits and Tools
Beyond stock and rent, starting a business in Kenya has fixed setup costs: registration, permits, payments and a basic online presence. Here's a realistic budget line by line.
Most people budget for stock and rent and forget the setup costs that come before the first sale. Here's the checklist we walk new clients through, from the cheapest legal start to a properly set-up company.
The setup budget, line by line
- Business name registration: KSh 950 on eCitizen, or KSh 10,650 for a private limited company (confirm on the invoice)
- County business permit: from a few thousand shillings a year for a small shop, depending on county, activity and size
- Sector licences if your trade needs them: food, health, pharmacy, liquor, transport
- Lipa na M-Pesa till: free to open; you pay transaction tariffs
- Domain name: about KSh 1,000 to KSh 2,500 a year for .co.ke
- Logo and basic branding: from a few thousand shillings
- Website: from a simple express site to a full online shop, depending on what you sell
- Rent deposit, shop fit-out, stock and three months of running costs as a buffer
How to start a business in Kenya with small capital
- Start from home or online and test demand before signing a lease
- Buy stock in small batches until you know what sells
- Use free tools first: WhatsApp Business, Google Business Profile, Canva
- Register early. It's cheap and unlocks a till number, suppliers and loans
If you're just registered and need guidance, our Seed retainer (KSh 3,500/mo) covers the setup and structure of a new business month by month.
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Antony Mungai
Founder, Steff Cloud — building websites, systems and automation for Kenyan businesses from Nakuru.