For small and medium sized enterprises operating in Kenya, a thorough understanding of required business licenses is essential. Regulatory compliance ensures smooth business operations and helps avoid potential legal and financial penalties.
The County Government of Nairobi has introduced the Unified Business Permit to simplify the licensing process for businesses within the city. This new system consolidates all necessary licenses into a single permit, eliminating the previous requirement for traders to pay for individual licenses separately.
Applications for the Nairobi Unified Business Permit are processed via the Nairobi City County e-services platform. Businesses located in other counties such as Mombasa, Meru, Tharaka Nithi, Embu, Kajiado, Bomet, and Kisumu County utilize the eCitizen platform for their applications. The total fees charged are determined based on the business size and industry of operation.
The Unified Business Permit encompasses the following specific business licenses:
1. Single Business Permit
Business permits are issued by the relevant county governments. In Nairobi, licensing is governed by the Nairobi City County Trade Licensing Act. This legislation mandates that any person intending to operate a business or trade within Nairobi, including hawkers and street vendors, must obtain a trade license. Failure to comply can result in a penalty of up to one hundred thousand shillings or a prison term of six months.
Permits are valid for twelve months and must be renewed upon expiration. Failure to renew the permit can make a trader liable to a fine of up to one hundred and fifty thousand shillings.
2. Fire Inspection Certificate
In accordance with the Occupational Health and Safety Act, every workplace must be equipped with accessible and suitable fire extinguishers, adequate fire escape routes, and established communication of fire safety procedures. Noncompliance with the requirement to obtain this certificate may lead to a fine of up to one hundred thousand shillings, imprisonment for up to three months, or both, alongside an additional fine of ten thousand shillings for each day the offence continues.
Businesses are subject to inspection to ensure full compliance before the certificate is issued.
3. Food and Health Certificate
The Food Drugs and Chemical Substances Food Hygiene Regulations stipulate that no person shall be permitted to sell package store or display food unless they possess a valid food hygiene license. Furthermore, any person who owns operates or is in charge of a food plant is required to apply for a medical examination for all employees, leading to the issuance of a certificate of medical examination.
Failure to adhere to these regulations may attract a fine of two thousand shillings or imprisonment of up to three months. Businesses undergo inspection to verify compliance before the certificate is granted.
4. Advertisement Permit
The County Outdoor Advertising Control Act 2020 requires any person planning to engage in outdoor advertising to apply for an outdoor advertising license. An advertisement is defined as a notice or representation used to draw public attention to or promote any product or service. Operating without a license could result in a prison sentence of six months or a fine of up to two hundred thousand shillings. Each County Assembly is responsible for formulating its own legislation regarding the issuance of these permits. The Nairobi City County Finance Act outlines the specific fees payable for advertisements within Nairobi.
However not all notices necessitate a license. Exemptions include advertisements on enclosed land without public access, advertisements related to the location or direction of a religious or public education or public medical institution, advertisements displayed inside a building not visible from the outside, or advertisements on vehicles that hold a license from another county.
5. Pest Control Certificate
The Pest Control Products Act 2012 stipulates that every person who owns operates or is in charge of or intends to handle use distribute transport or deal in a Pest Control Product must apply for a permit. Any individual who manufactures packages stores displays distributes uses or advertises any pest control product without this certificate is guilty of an offence. This can lead to imprisonment for up to two years a fine of not less than two hundred and fifty thousand shillings or both.
