Doing Business in Kenya – Case Study


Out of all the east African countries, Kenya is the most developed country. In 2011, the country’s gross domestic product stood at $35.8 billion. This reveals that it can be a great place to carry out business activities in Africa. Kenya is an economic, logistic and commercial hub. It attracts thousands of investors from all over the world each year. Its population is composed of educated citizens who are willing to do business with people from all parts of the world. The population comprises mainly of young people under the age of 35.

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Doing Business in Kenya – Case Study

Kenya’s strengths:

Kenya supports a wide variety of activities. Natural resources, its strategic location and human capital are some of the key attributes that a person will enjoy while carrying out business activities in Kenya. The agricultural sector forms the key employer in Kenya. This sector contributes up to 24.1% of the GDP. Tea, flowers, coffee and vegetables are the main exports in Kenya. However, there are several other products that are exported from Kenya. One of the major reasons why Kenya is a good agricultural hub is because it has a good weather.


The transport sector in Kenya is another factor which has enabled it to excel in international business. Investors should be rest assured that delays due to transportation issues will not be experienced. Nairobi for instance, is the key transportation hub in eastern and central Africa. Mombasa is another key transportation hub in Kenya. It is located at the coast which makes it a great place for those that want to export or import using ships.

Another key place to invest in is the manufacturing and financial sector. Kenya’s manufacturing and financial sector is one of the most developed in Africa. Its tourism industry is not an exception, it is known to be the best tourist attraction hub in Africa. It attracts millions of tourists each year. Anyone that wishes to invest in this sector may opt for hotels and entertainment sectors.

When the new government was voted in on March 4, 2013, a lot of new things were identified in Kenya. The country turned out to be a potential petroleum exporting country. Oil Production began, since then, the government has been encouraging investors to invest in this industry. In response to this, several US industries have entered the market.

Other business opportunities

Though there are a few challenges that investors may face while doing business in Kenya, it is important to understand that Kenya is a great place to do business. There are 5 main sectors that can get a lot of rewards. These sectors include; energy, infrastructure, agriculture, ICT and health.

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Entering the Kenyan market

There are several market entry strategies that a person can use to enter the Kenyan market. Traditionally, any businessman can appoint an agent before entering the market. Alternatively, any businessperson can even apply to operate a business individually. The government highly welcomes businessmen with excellent corporate social responsibility e.g. those who come with an aim to invest in education, health and agriculture.

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Procedure for setting up a business in Kenya

Generally, the government requires all businesses to be registered. For a registration to be effected, the following procedure will be used.

1. Reservation of the name.

The name should be unique and it should not be misleading.

2. Stamping the documents i.e. memorandum and articles of association

The Kenya revenue authority requires that all businesses that are operated in the country should have PINs. Before PINs are issued, the above mentioned documents shall be assessed by the stamp duty officers.

3. Payment of stamp duty

The stamp duty is delivered to the stated bank. Currently, all stamp duties are delivered to the National bank of Kenya.

4. Signing of the declaration of compliance

This is done before a commissioner of oaths. It is done to confirm a businessman’s willingness to adhere to the rules of conducting business in Kenya. While the above procedures may change anytime. However, investors should be ready to find a procedure which is similar to the one above that can work at any given time. All in all, Kenya is a great destination for business.