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How to Buy a Business in Kenya: End-to-End Playbook

From defining your target through Letter of Intent, due diligence, deal structure, financing, and the ownership transfer — the full acquisition workflow.

~90 min total Advanced7 steps
Start with Step 1
Disclaimer

The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.

What you'll have

  • A clear acquisition mandate (size, sector, geography, budget)
  • Deal pipeline and a structured screening process
  • Signed LOI and a due diligence playbook you can reuse
  • Financing strategy, SPA, and a clean transfer

Steps

  1. 01
    Define your acquisition mandate

    Buyers who skip the mandate buy the first 'interesting' business they see and regret it 18 months later. Write it down before you look at a single listing.

    ~10 min
  2. 02
    Source deals: where Kenyan businesses actually trade

    There's no MLS for Kenyan businesses. Quality deal flow is a hustle.

    ~10 min
  3. 03
    Screen, sign NDA, and review the Information Memorandum

    First filter: does the headline math even work? Second filter: does the IM survive a careful read?

    ~10 min
  4. 04
    Send a Letter of Intent (LOI)

    The LOI is non-binding but it sets the tone. Get the headline economics agreed in writing before spending money on lawyers and accountants.

    ~10 min
  5. 05
    Run a structured due diligence

    DD is where deals are won and lost. Use a four-stream model so nothing falls through the cracks.

    ~20 min
  6. 06
    Lock in financing

    Most Kenyan SME deals close with a 60/40 equity/debt stack. Sort financing in parallel with DD so you don't lose the deal to slow-moving capital.

    ~10 min
  7. 07
    Negotiate the SPA and close

    The Share Purchase Agreement (SPA) translates the LOI + DD findings into binding obligations. Don't let your lawyer go to town on boilerplate — engage them with a clear deal summary.

    ~15 min