Kenya is intensifying its efforts to bring foreign-run small businesses into the formal economy, highlighting the substantial compliance costs these operators face. This initiative is particularly challenging for mid-sized businesses, which must navigate a complex landscape of regulations.
The financial burden begins with immigration compliance. Foreign entrepreneurs must secure a Class G permit for their specific trade or consultancy, which requires proof of at least Sh100,000 in capital. Additionally, there is a Sh20,000 processing fee and a Sh250,000 annual issuance fee.
Fortunately, nationals from the East African Community are exempt from these fees, providing some relief. However, the overall costs associated with licenses, taxes, payroll deductions, and immigration compliance continue to pose significant challenges for foreign businesses in Kenya.