📌 Introduction
Starting a business in Kenya in 2025? Good news — the process is now more streamlined than ever thanks to the revamped eCitizen portal and the improved iTax integration.
Whether you’re launching a side hustle, a consultancy, or a full-blown SME, this step-by-step guide shows you how to:
✅ Register your business on eCitizen
✅ Get a KRA PIN
✅ Link your business to iTax
✅ Understand your next tax steps (VAT, PAYE, TOT)
✅ Step 1: Set Up Your eCitizen Account
Before you do anything else, head to www.ecitizen.go.ke and create an account.
Requirements:
- National ID number
- Registered mobile number
- Valid email address
- Passport-size photo
Once verified, you’ll gain access to government services — including Business Registration Services (BRS).
🏢 Step 2: Choose the Right Business Type
On eCitizen, you’ll choose from:
| Business Type | Description | Best For |
|---|---|---|
| Sole Proprietorship | Owned by one person | Freelancers, consultants |
| Partnership | Owned by 2–20 people | Small teams |
| Private Limited Company | Limited liability | Growing SMEs |
| Public Limited Company | Can raise capital | Corporates |
For most new Kenyan entrepreneurs, a sole proprietorship or private company limited by shares is ideal.
🧾 Step 3: Name Search and Reservation
- Go to Business Registration Service
- Choose Name Search
- Propose 3–5 business names
- Pay Ksh 150 via M-Pesa
- Wait 1–2 working days for approval
Once approved, the name is reserved for 30 days.
📝 Step 4: Register Your Business
After name approval:
- Choose Register a Business
- Fill in key details:
- Business name
- Physical address (with GPS code)
- Nature of business
- Proprietors or directors (ID, KRA PIN)
- Capital and ownership structure
- Upload:
- ID copies
- Passport photo
- Signed forms (e.g., CR1, CR2 for companies)
💳 Pay the registration fee:
- Sole prop: Ksh 950
- Company: ~Ksh 10,650 (depending on structure)
eCitizen issues your Business Registration Certificate (PDF) in 1–3 working days.
🔢 Step 5: Apply for a KRA PIN (For the Business)
Once you have your certificate:
- Go to iTax portal
- Choose New PIN Registration
- Select Non-Individual (for business)
- Enter your Registration Certificate Number
- Provide contact info and business address
- Submit application
🧾 KRA will issue a PIN Certificate instantly — this becomes your business tax identity.
📎 What You Can Now Do with Your Business PIN
- File tax returns
- Apply for a Tax Compliance Certificate (TCC)
- Invoice customers via eTIMS
- Apply for government tenders
- Open a business bank account
⚙️ Optional: Link to eTIMS or Activate Tax Obligations
Based on your business type, KRA may require you to:
| Tax Type | When It Applies |
|---|---|
| Turnover Tax (TOT) | If gross income is Ksh 1M–25M per year (1% monthly) |
| VAT | If taxable supplies > Ksh 5M per year (16% VAT) |
| PAYE | If you hire staff |
You can activate these on iTax under “Registration – Amend PIN”.
❌ Common Mistakes to Avoid
- ❌ Using personal KRA PIN instead of registering the business
- ❌ Registering the wrong business type (e.g. company instead of sole prop)
- ❌ Forgetting to activate VAT or PAYE when due
- ❌ Not filing nil returns if the business is inactive
🧠 FAQs
Q1: Can I register more than one business under my ID?
Yes, especially for sole proprietorships.
Q2: How long does the process take?
2–5 working days if all documents are in order.
Q3: Is a KRA PIN mandatory to register a business?
Yes — for company directors and to obtain the business’s own PIN.
Q4: Can I do everything online without visiting KRA?
Yes — 100% online via eCitizen and iTax.
Q5: Do I need to renew my business registration annually?
No — but Annual Returns (for companies) must be filed with BRS.
📣 Conclusion: Start Right, Stay Compliant
Registering a business in Kenya no longer requires a lawyer or long queues.
With just a few clicks, you can launch your hustle — legally and tax-compliant.
💡 Need help activating your KRA obligations?
Ushuru.com offers free business setup checklists and expert guidance.