What you pay for when you register
Business registration has two fee components. First, a name reservation fee to search and reserve your business name. Second, a registration fee to actually register the business name or incorporate the company. Both are paid on eCitizen, and together they make up the core cost of registering.
A business name is the cheaper route because it is a simpler registration: a sole proprietor or partnership operating under a name, with no shareholding or company documents. Incorporating a limited company costs more because it creates a separate legal entity with directors, shareholding and a more formal registration.
Fees are set by the Business Registration Service and can be revised, so the responsible approach is to confirm the current figures on eCitizen when you register, rather than budgeting from an old blog figure that may have changed. The key point for planning is that a business name is modest, and a company is a larger but still accessible cost.
The costs to budget for, step by step
Plan for the registration fees plus the related costs of getting fully set up.
- 1
Step 1: Name reservation fee
A small fee to search and reserve your business name on eCitizen. Budget for the possibility of a second attempt if your first name clashes.
- 2
Step 2: Registration fee
The fee to register the business name, or the higher fee to incorporate a company. Confirm the current figure on eCitizen.
- 3
Step 3: KRA PIN (free)
Getting a KRA PIN on iTax is free, but you need it to register, so factor it into your timeline if you do not have one.
- 4
Step 4: County business permit
After registration, budget for the county single business permit, an annual fee that depends on your business category and size.
- 5
Step 5: Any professional help
If you use an agent or lawyer to register (optional for a business name, more common for a company), budget for their fee on top of the government fees.
- 6
Step 6: Setup costs to trade
Beyond registration, budget for the tools to actually operate: a way to take payments, invoice compliantly and track stock.
Common cost mistakes
Relying on an outdated fee figure
Fees can be revised. Budgeting from an old number risks a surprise. Confirm the current fee on eCitizen when you register.
Forgetting the permit cost
Registration is not the only cost. The annual county business permit is a separate, recurring fee many first-time owners overlook.
Overpaying an agent for a simple business name
A business name is simple enough to register yourself on eCitizen. Paying a large agent fee for it is often unnecessary.
Incorporating a company when a name would do
A company costs more to register and maintain. If a business name meets your needs, it is the cheaper structure.
Not budgeting for the tools to trade
Registration alone does not let you sell. Budget for payments, invoicing and stock tools so you can actually operate after registering.
A first-time owner budgets registration
A first-time owner in Kisumu plans to register a business name for her tailoring business. She checks eCitizen for the current name reservation and registration fees rather than trusting an old figure she saw online.
She budgets the two government fees, notes that her KRA PIN is free, and adds the county single business permit as a separate annual cost. She decides to register herself on eCitizen rather than pay an agent, since a business name is straightforward.
With the government fees confirmed and the permit budgeted, she has an accurate total, and she sets aside a little more for the tools to actually take payments and invoice once she is registered.
Many new Kenyan businesses stall on avoidable basics: no clean records, no eTIMS set up, and no clear view of what actually sells.
Veira gets you selling, compliant and tracking stock from day one, so the admin does not bury the business.
Keeping the cost of running low after registration
Registration is a one-off cost; running the business is ongoing. A big early expense for many businesses is POS hardware, which can cost tens of thousands of shillings upfront.
Veira removes that: a free handheld terminal ships with every plan, so you get POS, M-Pesa payments, inventory and KRA eTIMS invoicing without the upfront hardware cost, from KES 2,999 a month. That keeps your setup budget focused on registration and the permit.
Frequently asked questions
How much is business registration in Kenya?
Is registering a business name cheaper than a company?
Are there costs after registration?
Do I need to pay an agent to register?
Why should I check the fee on eCitizen?
Is a KRA PIN needed and does it cost anything?
Business registration in Kenya is affordable, a modest fee for a business name and more for a company, but remember the permit and the tools to trade in your budget. Confirm the current fees on eCitizen. Veira keeps your running costs low with a free terminal and POS, M-Pesa and eTIMS from KES 2,999 a month. See how Veira works.