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East African hub with mobile money innovation
Region
AFRICA
Corporate Tax
30%
Setup Time
6 weeks
Currency
KES
Kenya, East Africa's largest economy, has earned recognition for mobile payment innovation and regional hub status. The country's improving company registration framework supports business setup for East African market access.
With a population of 55 million, Kenya offers diverse living from modern Nairobi to coastal Mombasa. Swahili and English are official languages, with English predominant in business. The equatorial highland climate in Nairobi is pleasant year-round.
Healthcare varies significantly, with quality private facilities in Nairobi. Safety requires awareness, with security concerns in some areas. The cost of living is moderate, with Nairobi more expensive than regional areas.
The entrepreneurial culture and natural beauty attract business visitors and expatriates.
Corporate tax rate stands at 30% for resident companies. Personal income tax reaches 35%. VAT applies at 16%. The tax burden is moderate for the region.
The Kenyan shilling has experienced depreciation. Kenya serves as East African Community hub with regional market access. M-Pesa mobile money has transformed financial services.
Company registration through the Companies Registry (e-Citizen portal) has been digitized. Private limited companies require minimum one shareholder and one director. Foreign ownership is permitted with some sector restrictions.
Company formation takes approximately 1-2 weeks. Minimum capital requirements are nominal. Annual compliance involves filing returns and tax obligations.
Kenya has not established a comprehensive crypto license framework, though the Central Bank has issued statements. Digital asset businesses operate in regulatory uncertainty with potential future frameworks under discussion.
The Betting Control and Licensing Board regulates gambling including online betting. The gambling license framework is functional, with Kenya having a significant betting market, particularly for sports.
Infrastructure varies significantly outside Nairobi. Corruption remains a concern requiring careful navigation. Security situation requires appropriate awareness.
Banking access is available through Kenyan and international banks. Professional services are developing in Nairobi. Kenya's position as regional hub provides market access beyond domestic economy.
Kenya suits East African market entry, tech-enabled businesses, and regional headquarters for their business setup.
Local: Ltd
Local: PLC
Local: LLP
Local: Branch
| Corporate Tax Rate | 30% |
| Personal Income Tax Rate | 35% |
| VAT / Sales Tax | 16% |
| Capital Gains Tax | 15% |
| Withholding Tax | 15% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | SOME |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | No |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | Yes |
| MLRO Required | Yes |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF Travel Rule |
| Business Plan Required | Comprehensive business plan with compliance manuals and AML/CFT policies required |
| Personnel Required | CEO for Kenyan operations, AML Officer, fit-and-proper directors and senior managers |
| Insurance Required | Yes |
| Insurance Details | Insurance or trust accounts required to protect client funds |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | CBK and CMA maintain licensed VASP registers |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank of Kenya (CBK) for payments/stablecoins; Capital Markets Authority (CMA) for exchanges/custody |
| Licensing Fee Details | Application and licensing fees to be prescribed in subsidiary regulations (pending publication) |
| Permitted Business Models | Exchange, Custody, Brokerage, Payment Gateway, Stablecoin Issuance, Investment Advisory |
| Permitted Activities | Trading, Custody, Wallet Services, Payment Processing, Token Issuance |
| Restricted Activities | Anonymity-enhancing services prohibited, privacy coins restricted |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $1,000,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Detailed business plan with minimum investment and funding sources required |
| Personnel Required | Key personnel with gambling industry experience |
| Insurance Required | Yes |
| Insurance Details | Insurance bond or bank guarantee required as security (KSh 100 million for online operators) |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Gambling Regulatory Authority of Kenya (GRA) publishes licensed operators |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Gambling Regulatory Authority of Kenya (GRA) |
| Licensing Fee | $100,000 |
| Licensing Fee Details | Application fee KSh 5,000 plus licensing fee approximately KSh 100,000-400,000+ annually depending on license type; security deposit KSh 100-200 million for online operators |
| Permitted Business Models | B2C, B2B |
| Permitted Activities | Casinos, Sports Betting, Lotteries, Online Gambling, Bingo, Prize Competitions |
| Restricted Activities | Advertising near schools and religious sites; celebrity/influencer endorsements prohibited; minimum 30% Kenyan ownership required |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $5,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Comprehensive business plan with risk management and internal control frameworks |
| Personnel Required | Directors, senior management with fit-and-proper assessment, Trust trustees |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Central Bank of Kenya publishes authorized PSPs |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank of Kenya (CBK) |
| Licensing Fee | $105,000 |
| Licensing Fee Details | Application fee KSh 5,000 + Authorization fee KSh 100,000. Core capital: KSh 5M (Electronic Retail PSP), KSh 1M (Small E-Money Issuer), KSh 20M (E-Money Issuer), KSh 50M (Designated Payment Instrument Issuer) |
| Permitted Business Models | PSP, E-Money Issuer, Payment Aggregator |
| Permitted Activities | Payment Processing, E-Money Issuance, Mobile Payments, Money Remittance |
| Restricted Activities | Banking activities (lending, deposits) require separate banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |