Business Costs · 2026 Update
How Much Does It Cost to Register a Company in Kenya in 2026?
Every fee, every business type, every hidden cost. The complete 2026 breakdown for entrepreneurs.
The cost of registering a company in Kenya in 2026 ranges from KES 950 for a sole proprietorship to KES 15,000+ for a limited liability company, with optional lawyer fees adding up to KES 50,000. This guide breaks down every single fee so you can budget accurately and avoid surprises. All prices are current as of 2026 and based on the official eCitizen Business Registration Service rates.
Quick Cost Summary by Business Type
| Business Type | Min. Cost | With Lawyer |
|---|---|---|
| Sole Proprietorship | KES 950 | N/A (DIY) |
| Partnership | KES 950 | KES 5,950 – 30,950 |
| Limited Liability Company | KES 10,200 | KES 25,000 – 65,000 |
1. Sole Proprietorship: KES 950 Total
The cheapest option. A sole proprietorship is owned by one person, taxed as personal income, with unlimited liability.
- Name search: KES 150
- Registration fee: KES 800
- Total: KES 950
Best for: freelancers, consultants, side businesses, small shops, online stores doing under KES 5M annually. The downside is that you and the business are legally the same person — if the business is sued or owes money, your personal assets (house, car, savings) are at risk.
Read more: How to Register a Sole Proprietorship in Kenya.
2. Partnership: KES 950 + Optional Legal Fees
For two or more people (up to 20) running a business together. Government fees match a sole proprietorship, but you should budget for a properly drafted partnership deed.
- Name search + registration: KES 950
- Partnership deed (lawyer-drafted): KES 5,000–30,000 depending on complexity
- Total realistic budget: KES 5,950–30,950
The partnership deed is technically optional but strongly recommended. It defines each partner's contributions, roles, profit shares, and exit terms. Without it, partnership disputes get messy and expensive in court later.
3. Limited Liability Company (LLC): KES 10,200+ Total
The most popular structure for serious businesses. An LLC is a separate legal entity — your personal assets are protected.
Required government fees:
- Name search: KES 150
- Base registration: KES 10,000
- Stamp duty on share capital: 1% of nominal share capital, minimum KES 200, capped at KES 5,000 in most cases
- Subtotal (government): KES 10,200–15,000
Stamp duty examples by share capital:
- Share capital KES 10,000 → stamp duty KES 200 (the minimum applies)
- Share capital KES 100,000 → stamp duty KES 1,000
- Share capital KES 500,000 → stamp duty KES 5,000
- Share capital KES 1,000,000 → stamp duty KES 5,000 (capped)
Tip: A higher share capital signals credibility to banks and investors but increases stamp duty. Most early-stage LLCs use KES 100,000 nominal capital to balance both.
Optional: Lawyer fees
Kenyan corporate lawyers charge KES 15,000–50,000 for company registration depending on complexity. The fee typically includes:
- Drafting custom Memorandum and Articles of Association
- Advising on share structure and shareholder rights
- Filing on your behalf and following up with the registrar
- Initial board resolutions for opening a bank account
For a single-director limited company with standard structure, the eCitizen templates work fine — you don't need a lawyer. For multiple shareholders with custom rights, foreign directors, or complex share classes, a lawyer is worth the money.
Hidden and Post-Registration Costs to Budget For
These come after registration but you should know about them now.
Single Business Permit (County Government)
- Nairobi County: KES 5,000–25,000 depending on business size and category
- Mombasa County: KES 6,000–30,000
- Kiambu County: KES 4,000–20,000
- Other counties: Generally KES 3,000–25,000
The permit is mandatory before you legally start operating. It is renewed annually.
Business KRA PIN: Free
For limited companies, you need a separate KRA PIN for the business. The application is free on iTax but takes 1–3 days. Required before you can issue tax invoices or open a corporate bank account.
NHIF and NSSF Registration: Free
Free to register, but mandatory if you have employees. Monthly contributions become an ongoing cost (NHIF KES 500–1,700 per employee, NSSF KES 200–1,080 per employee depending on income tier).
Business Bank Account Opening
- Account opening fee: usually KES 0–500
- Minimum opening deposit: KES 1,000–10,000 (varies by bank)
- Monthly maintenance: KES 200–1,500 depending on the account tier
Stationery, Logos, and Compliance
- Company stamp (rubber stamp): KES 800–2,000
- Logo design (basic to professional): KES 5,000–50,000
- Website (essential for credibility in 2026): KES 150,000+
Total Realistic First-Year Budget
When you account for everything you actually need to start operating, here's what to budget:
- Sole proprietorship (basic): KES 10,000–25,000 (registration + permit + stamp + bank account)
- Limited company (no lawyer, basic): KES 30,000–60,000
- Limited company (with lawyer + small website): KES 200,000–300,000
Where to Save Money
- DIY on eCitizen: Skip agents who charge KES 5,000–10,000 to do what you can do yourself in 2 hours
- Use eCitizen templates: The default Memorandum and Articles work for most LLCs — saves KES 15,000+ in legal fees
- Choose modest share capital: KES 100,000 nominal capital is enough for most starting businesses and keeps stamp duty low
- Bundle services: Some web developers (like KenZobe) offer registration consultation + website + Google Business setup as a package — cheaper than hiring each separately
Where Not to Cut Corners
- Don't skip the partnership deed — paying a lawyer KES 10,000 now beats a lawsuit later
- Don't use someone else's KRA PIN — every director needs their own; this is non-negotiable
- Don't register without a real address — using a P.O. Box only gets your application rejected and wastes the registration fee
Frequently Asked Questions
What is the cheapest way to register a company in Kenya in 2026?+
A sole proprietorship at KES 950 total (KES 150 name search + KES 800 registration) is the cheapest path. It works well for freelancers, consultants, and one-person businesses. The trade-off is unlimited personal liability — if the business is sued, your personal assets are exposed.
How much does a limited company cost to register in Kenya?+
A limited liability company costs KES 10,000–15,000 in government fees: KES 150 name search, KES 10,000 base registration, plus 1% stamp duty on share capital (minimum KES 200). If you use a lawyer for the Memorandum and Articles of Association, add KES 15,000–50,000.
Are there any hidden fees in Kenyan company registration?+
Yes — three you should budget for: (1) printing and certified copies if you need them, around KES 500, (2) post-registration KRA PIN application for the business (free but takes time), and (3) Single Business Permit from your county, KES 5,000–25,000 depending on business type and location.
Does paying for company registration on eCitizen include stamp duty?+
For sole proprietorships and partnerships, yes — the KES 800 fee covers everything. For limited companies, stamp duty is calculated separately based on share capital (1% with a minimum of KES 200). The eCitizen portal calculates and charges this automatically based on what you declare.
Can I deduct company registration fees as a business expense?+
Yes. Registration fees, lawyer fees, name search costs, and stamp duty are all classified as pre-incorporation expenses. Once your business is registered and earning revenue, you can deduct these as start-up costs in your first tax filing. Keep all receipts and the eCitizen payment confirmations.
How much should I budget for a lawyer to register my company?+
Kenyan law firms charge KES 15,000–50,000 for company registration. The lower end covers a basic limited company with standard documents. The higher end is for complex structures (multiple share classes, holding companies, foreign shareholders). For sole proprietorships and partnerships, you don't need a lawyer.
Now Make Your Investment Pay Off
You've spent KES 10,000 to KES 60,000 making your business legal. The single biggest return on that investment is getting online. KenZobe Technologies builds professional websites for newly registered Kenyan businesses starting at KES 150,000 — including hosting, domain, M-Pesa integration, and SEO setup. Get a free quote.