Get quick answers to the most common questions about doing business, staying compliant, and managing finances in Kenya.
What is the difference between a Subsidiary and a Branch in Kenya?
A subsidiary is a separate legal entity (Kenyan company) owned by a foreign parent. A branch is an extension of the foreign company registered to do business in Kenya. Subsidiaries are often preferred for their legal separation and standard tax rates.
How many directors are required for a private limited company?
A private limited company in Kenya can have a minimum of one (1) director. However, many foreign-owned firms appoint at least two directors for administrative ease.
What is the Corporate Income Tax rate in Kenya?
Resident companies are taxed at 30% on their worldwide income. Non-resident companies (branches) are taxed at 37.5% on their Kenyan-sourced income.
When is VAT registration mandatory?
A business must register for VAT if its annual taxable turnover exceeds KES 5 million. Voluntary registration is possible for businesses below this threshold.
Which accounting software do you recommend for Kenyan SMEs?
We highly recommend QuickBooks Online or Xero. Both are cloud-based, localized for Kenyan tax laws (including VAT), and allow for real-time collaboration between you and our team.
Do you handle M-Pesa reconciliations?
Yes. Given that M-Pesa is a primary payment method in Kenya, we specialize in reconciling Paybill and Till statements against your sales records and bank deposits.
What is a Class G Work Permit?
Class G is an 'Investor' work permit issued to foreigners who intend to engage in trade, business, or consultancy. It requires a minimum investment of USD 100,000.
Can my spouse and children live with me in Kenya?
Yes. Once you have a valid work permit, your legal dependents can apply for a 'Dependent Pass' which allows them to reside in Kenya for the duration of your permit.
What is a CR12 certificate?
A CR12 is an official document from the Registrar of Companies that confirms the current list of directors and shareholders of a company. It is frequently required by banks and government agencies.
What happens if I don't file a Nil Return?
Even if your company didn't trade, failing to file a Nil Return attracts an automatic KES 20,000 penalty per year for companies and KES 2,000 for individuals on iTax.
Still Have Questions?
Our team is available to provide personalized advice tailored to your specific business situation.