Operating a Business

Kenya: Operating a Business

Setting Up a Company

Public limited company: Number of partners: Minimum 51 members
Capital (max/min): Minimum KES 100,000
Shareholders and liability: Members are not liable beyond the amount of their capital contribution or the outstanding balance on the company's capital
Private limited company: Number of partners: Minimum 1, maximum 50 shareholders
Capital (max/min): Minimum KES 100,000
Shareholders and liability: Members are not liable beyond the amount of their capital contribution or the outstanding balance on the company's capital
Limited Liability Partnership: Number of partners: Minimum 2
Capital (max/min): No minimum capital required
Shareholders and liability: Members are not liable beyond the amount of their capital contribution
General partnership: Number of partners: At least two members
Capital (max/min): No minimum capital required
Shareholders and liability: All gains and losses are divided among its members according to their capital contribution
Sole proprietorship: Number of partners: One member only
Capital (max/min): No minimum capital required
Shareholders and liability: A sole proprietor is personally liable for all debts

Setting Up a Company	Kenya	Sub-Saharan Africa
Procedures (number)	7.0	7.5
Time (days)	23.0	21.3

Source: Doing Business.

Business Setup Procedures: Consult the Doing Business website, to know about procedures to start a business in Kenya.

	2018	2019	2020
Labour Force	23,055,882	23,733,381	23,738,918

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

For Further Statistics: Kenya Bureau of Statistics
Ministry of Labour
For Further Information About the Labour Market: International Labour Organization

Legal Weekly Duration: 52 hours per week (60 hours for night workers). Generally, employees work 45 hours a week.In the special economic zones (export processing zones) and in the road construction sector employees are often forced to do non-paid overtime.
Retirement Age: 60 years
Working Contracts: The employer is legally obliged to prepare and provide written contracts for all employees hired for more than three consecutive months. The contract must be signed by both the employer and the employee and can specify the contract period if they wish. If it is not specified, it has to indicate the reasons leading to termination of the contract.
During the signature of a work contract, if an employee is illiterate, the content of the contract must be clearly explained.
Labour Laws: Consult Doing Business Website, To obtain a summary of the labour regulations that apply to local entreprises.

Minimum Wage: Minimum wages vary by job type and location. A 12% hike of the minimum wage was decided in 2015. The minimum wage is around USD 170/month for a skilled worker and around USD 107/month for a regular worker. Workers in the agricultural sectors are less well paid than in other sectors. Their minimum wage is around USD 66/month.
For more information on minimum wage per sector in Kenya, consult the website Wage Indicator.
Average Wage: USD 5,032 per year in the formal sector.
Social Contributions: Social Security Contributions Paid By Employers: 6%
Social Security Contributions Paid By Employees: An employee must contribute to national social security fund and hospitalization insurance (about 6% and 1% of his or her salary).

Social Dialogue and Involvement of Social Partners: The Law on work relations provides that workers, including those in the export processing zones (EPZs), are free to form or join a union. The law grants the right to strike, but this is subject to the exhaustion of conciliation procedures and a formal notice given seven days in advance to the government and the employer. The right to strike is generally respected and conflicts are resolved peacefully. In the informal sector, associations or unions provide a certain level of care and education, but have no bargaining power concerning collective agreements.
Unions: Central Organisation of Trade Unions (COTU-K)
Unionisation Rate: Kenya has around a million of unionized workers.
Labour Regulation Bodies: Ministry of Labour

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