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Regulatory roadmap: What it costs a business to fully comply in Kenya
KRA says businesses must maintain proper records and comply with electronic invoicing requirements, while the 2026 Finance Act has strengthened the administration of electronic tax systems and allowed KRA to use available taxpayer information in pre-populated returns.
Kenya’s push to force foreign-run small businesses into the formal economy is exposing a wider burden faced by mid-sized operators, spanning licences, taxes, payroll deductions and immigration compliance.
For a foreigner operating a business in Kenya, the cost would begin with immigration compliance; a Class G permit for specific trade, business or consultancy requires proof of at least Sh100,000 in capital, with a Sh20,000 processing fee and a Sh250,000 annual issuance fee, although Eat African Community nationals are exempt from those fees.