The certificate of incorporation arrives quickly. What new directors sometimes underestimate is the second register: the tax, social security and county obligations that must be in place before a company can lawfully employ staff and trade.
Which registrations come first?
The company’s KRA PIN is the anchor. It is issued through the Kenya Revenue Authority’s iTax platform (kra.go.ke) and is required for bank accounts, tender documents and tax filings, including the obligation to file returns even when the company has not yet traded. Where the company will make taxable supplies above the registration threshold, VAT registration follows. Directors who are Kenyan taxpayers should also confirm their personal PIN details are current, since banks will verify them during account opening. The PIN certificate can be generated on iTax immediately after registration, and banks will ask for it alongside the incorporation documents.
What must an employer register for?
Employers register with the National Social Security Fund and remit contributions under the NSSF Act. On the health side, employer contributions are now made to the Social Health Insurance Fund under the Social Health Insurance Act, which replaced the former NHIF arrangements. Payroll should be set up to deduct and remit these contributions alongside PAYE from the first payslip, because arrears attract interest and complicate audits. Contribution rates and thresholds are revised periodically, so figures should be confirmed at the time of payroll setup.
Do you need a county business permit?
Trading from premises requires the relevant county’s single business permit, renewed annually and varying by county, activity and premises size. Separately from the county layer, some activities are regulated nationally, pharmaceutical and medical-device businesses, for example, need approvals from the Pharmacy and Poisons Board (ppb.go.ke) before they may trade. Because counties differ on rates, renewal dates and display requirements, the local position should be confirmed rather than copied from another business’s setup.
Sequencing these registrations correctly avoids the common trap of signing a lease or hiring staff before permits and statutory registrations exist. Our governance advisory practice coordinates post-incorporation compliance, and our practice areas page sets out related work.
For guidance on your specific situation, contact CS Advocates LLP, call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.