How To Start A Ladies Clothing & Handbag Boutique as a Foreigner

Hello, To answer your questions to the best of my knowledge:

1) You will need to apply for a Class G permit.  One of the key requirements is that you have a minimum $100,000 (or equivalent in another currency) in the bank, or invested in Kenya.  You must also have registered your company and obtained a PIN from Kenya Revenue Authority (KRA).  Refer to the checklist below

https://kenya.eregulations.org/media/Pe … cklist.pdf

2) You can register a company online see the link below.   You can do this on a single entry visa (visitors visa), as this is a requirement of the Class G permit application.  Pay close attention to your Articles of Association as these define the parameters under which you can trade - make them fairly broad, then you can branch out later.

https://kenya.eregulations.org/procedure/2/8?l=en

3) This is a difficult one and a personal issue to find someone who you can trust and who will not walk off with the profits (as a business partner).  If you register the business with a Kenyan partner, then the business will be able to trade before you have your permit - just that you won't be able to do any work yourself, legally that is.  If you need help in setting up your company, then engage a lawyer.  Unfortunately I can't recommend the one we used.  Try the Law Society of Kenya for registered lawyers.

4) Clothing and handbags attract duty.  This will be 25% of the items value plus insurance and freight charges, VAT at 16%, Import Declaration fee 2.25%.  There may also be a Kenya Bureau of Standards charge for verifying that the goods are genuine.  There was also a railway levy - not sure if this still applies. 

There are some freight companies with which you can make private online purchases in the UK and USA and have them freighted to Kenya for a flat fee per kg, plus handling charge.  I am unsure whether they would engage in any commercial operation though.

Lastly, Kenya can be a difficult place to do business as people can be very slow to pay you.

thank you so much for the useful information. But I just need verification about that $100,000 invested in Kenya before I can start a business. Is this an absolute requirement before a foreigner can start a business in Kenya?

No, you can start a business without this capital.  BUT you cannot legally work within your business/operate the business yourself unless you have a Class G permit.  The $100,000 is a requirement of the permit.

If you have a trusted Kenyan business partner, then the company can operate, but you would still be unable to work legally within the company, rendering you effectively a sleeping partner.

Dear Sharon,
if you do not intend to stay in Kenya then you can just form a company in Kenya and operate it from abroad.
However if you wish to run the company yourself the instructions given by Longonot are to be followed. and yes you will have to prove investment of Kshs 100,000$.