Register a Sole Proprietorship in Kenya
The fastest, cheapest legal structure in Kenya. Walk through naming, BRS registration on eCitizen, KRA PIN, bank account, and county permits in one sitting.
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 registered business name (BN/) certificate from BRS
- A KRA PIN for the business
- A bank account in the business name
- A county Single Business Permit covering your premises
Steps
- 01Decide if a sole proprietorship is right for you
Sole proprietorships are the cheapest and fastest structure to register in Kenya — but they come with unlimited personal liability. Confirm it's the right fit before you spend a shilling.
~5 min - 02Run a name search on eCitizen
Before anything else, reserve a unique business name through the Business Registration Service (BRS) on eCitizen. Reservation costs KES 950 and is valid for 30 days.
~5 min - 03File the Business Name (BN) registration
Once the name is reserved, file form BN/2 on the same eCitizen BRS portal. Cost is KES 950. Certificate is usually issued in 1–3 working days.
~10 min - 04Register the business with KRA
A sole proprietorship files taxes under your personal KRA PIN — there is no separate business PIN. But you must update your iTax profile so KRA knows you now have business income.
~5 min - 05Open a business bank account
Mixing personal and business money is the #1 mistake first-time sole props make. Open a dedicated business account this week — it makes tax filing, loans, and selling the business years from now infinitely easier.
~5 min - 06Apply for the county Single Business Permit
Every business operating from a physical premises in Kenya needs a Single Business Permit (SBP) from the county where it operates. Cost varies by county, business type, and premises size.
~5 min
A sole proprietorship is the fastest legal route to start trading in Kenya — most owners are registered and trading within a week. But it's also the structure where founders most often skip details (KRA registration, county permit, business bank account) and pay for it later in penalties or denied loan applications. This guide walks the full path end-to-end so nothing gets missed.
- Solo founders launching a side hustle or first business
- Freelancers, consultants, and hawkers ready to formalise
- Anyone planning < KES 25M annual turnover with no co-founders
- A valid Kenyan national ID and personal KRA PIN
- A working email and Kenyan phone number for eCitizen verification
- KES 2,000–10,000 to cover registration, KRA, and the county permit
- A specific business name and a clear description of what you'll sell
Frequently asked
Can I convert a sole proprietorship to a limited company later?+
Yes. It involves registering a new Ltd, transferring assets and customers across, and notifying KRA. Most owners do this once they cross KES 5–10M revenue or take on a partner.
Do I need an accountant from day one?+
Not strictly. But you should pick a bookkeeping system (even a clean Google Sheet) before your first sale. Cleaning books up retroactively at year-end is the most expensive way to do it.
Is a sole prop legally the same as me?+
Yes. The business has no separate legal personality. Your personal assets are exposed to business debts and claims — which is the main reason to consider a limited company instead.
