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starting business and moving to nairobi

Last activity 29 October 2011 by Christine

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srappai

Hello everyone ,

I am new on the forum and will soon be starting an internet business in nairobi .

I have a few questions ..

1- can anyone help me with information on starting a foreign ownership business in nairobi .

2-Once you register a company do you need to have a physical office or can you still work from home ?

3 - i am looking for a 2 bed room apartment (which will also function as my office for a mid range price in the lavington/westlands/hurlington areas .how much would this normally cost me ? Can anyone recommend any real estate agents / websites to get more info)

Thanks in advance !

Longonot62

Hi,  Firstly, please note that you cannot operate a business legally without a work permit (class H).  You will be able to register your company and as far as I am aware, you can use your home address.  You need to have registered your company before applying for the work permit, as the registration certificate and articles of association must be submitted in support of your application.

The other thing that you need in order to apply for your Class H permit is CAPITAL min $100 000, either in cash at the bank (not necessarily in Kenya) or proof of investment of that amount or more in a Kenyan business (I don't think purchase of a property is counted, but not sure).  Along with your application, you need a supporting statement or business plan, clearly defining how your business will benefit Kenya.  If your business will in any way be connected with tourism, then you must also register with the relevant government department.   The work permit is valid for two years.  There is also some type of insurance bond that you have to pay  - I don't know how much this is.

Please also note that your application will take 3 months and quite possibly longer.  While it is being considered, you do not have the right to remain in Kenya longer than your visitors visa permits.

I attempted to go through the above process, earlier in the year, but lots of questions and barriers were raised and in the end, I was advised to wait for the new constitution (I have a Kenyan wife and will be eligible to apply for dual citizenship, or similar). 

With regard to apartments in Lavington:  This is one of the pricier areas and off the top of my head, you would need to budget over Kes 10 million.  The following companies have websites (my connection is too slow to cut and paste):

Hassconsult,  VillaCare, Neptune Shelters (amongst others)

Good luck.

kenyandesi

hi srappai - everything Longonot has said is true - it would be advisable you get in touch with a lawyer to assist you - your can email me if you want any further information and or assistance

Abel4

Well am an internet marketer myself.Been working with affiliate networks for almost 2 years now(buying/selling you name it).What I will tell you is that there is no clearly defined policy for those of us who work online.You don't have to register with anyone for something you will be doing out of the comfort of your bedroom in your computer.Understand that this is still a 3rd world country.You however need to provide more information as to the nature of your online enterprise for further advise.Welcome to kenya :)

Longonot62

Abel4,  I think its a bit different for a foreigner.  For one thing, getting a work permit allows you to remain in Kenya.  Without this, you have to get out every 3- 6 months and immigration no longer like foreigners to cross the border for a day, in order to renew their visa.

A business is a business, no matter where it is run from and should really be registered.  The other thing is that once your internet business starts to do well, then someone, out of jealousy or whatever motive 'shops' you to the authorities and deportation results.......... and your business goes down the toilet too.  Immigration have been more active recently in dealing with illegal workers.

Joep

Hi Srappai,

I started my business earlier this year. I can't advertise the website here, but it has been refered to by others on this site.

We mainly broker vehicles, from the leaving expat to expat who is arriving. We just expanded this service with assistance in house search. Am sure our agent (with 20 years of experience and good connections) could find you the right apartment in no time.

I managed to register my business in no time. Cost me 40,000 Ksh with a decent lawyer and only took a few weeks.

For my workpermit I had assistance of the Kenya Investment Authority KIA(a para statal). They were great! And at no cost!

I only paid the standard fee to Immigration of 100,000 Ksh for a 2 year permit [on top of this you need to have  a security bond for 100,000 Ksh with a bank or an issurance for the same amount]. Once they take your case, they defend your workpermit request in meetings with Immigration.

Why pay a lawyer who takes 3 months on your work permit, when there is a government service with professionals that are there to help you and welcome you as investor to Kenya?! I had my work permit approved within 4 weeks!

But Longonot is right, for a class H workpermit you will need to show the said amount in the bank. And I think you might find opening a local bank account much more of a challenge.
However, I was told (but am not sure) that the said amount may also be on a foreign account..

Working from home is 'frowned upon' but impossible. Depends a lot on your line of business and your land lord. But as soon as your business grows and you are at risk of (what Longonot described: )  a competitor who reports you, it is better to move into a proper office.

Cheers, Joep

hamidk

Hello,

there is a 2 brand new apt. for rent in kileleshwa, close to
shopping centers and police station

2 large spacious bedrooms both ensuite with bathtub and head shower.
large modern kitchen, sitting/dining and laundry area. and with bore hole.

parking for 2 cars, 24 hr security guards with electric fence.
Safe and peaceful neighborhood

Available for rent immediately.

call Habib for viewing and rental rates.

thanks.

Christine

@hamidk- you should post this advert in the Nairobi classifieds > accommodation section. Thank you.

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