As a small or medium-sized enterprise (SME) owner in Kenya, understanding the various business licenses required for your operations is crucial. Compliance with regulatory requirements not only ensures smooth business operations but also avoids potential penalties.
The County Government of Nairobi recently implemented a Unified Business Permit, streamlining the licensing for businesses operating within the city. Under the new system, traders are now required to pay for a consolidated permit that covers all necessary licenses, marking a departure from the previous practice where they had to individually pay for both individual licenses.
Applications are made on the Nairobi City County e-services platform while those for Mombasa, Meru, Tharaka Nithi, Embu, Kajiado, Bomet and Kisumu County are made on e-citizen. The charges are determined by the size and industry of the business.
The following are the business licenses contained in the unified permit: -
Single Business Permit
Business Permits are issued by the relevant Counties. In Nairobi licenses are governed by the Nairobi City County Trade Licensing Act which provides that a person who intends to operate any business or trade within Nairobi shall obtain a trade licence, including hawkers and street vendors. Failure to obtain the licence shall make the person liable to a fine of up to one hundred thousand shillings or six months in jail.
Permits are valid for a period of twelve months after which they expire and must be renewed failure to which the trader may be liable to a fine of up to one hundred and fifty thousand.
Fire Inspection Certificate
Pursuant to the Occupational Health and Safety Act, every workplace must have accessible and suitable fire extinguishers, adequate fire escape routes and communication of fire safety procedures. Failure to obtain the licence one shall be liable to a fine of up to one hundred thousand shillings or to imprisonment for a term of up to three months or to both and a further ten thousand each day the offence is committed
Businesses shall be inspected to ensure compliance prior to issuance of the certificate.
Food and Health Certificate
The Food, Drugs and Chemical Substances (Food Hygiene) Regulations provide that no person shall be permitted to sell, package, store or display food unless that person is in possession of a food hygiene licence.
Further, any person who owns, operates or is in charge of a food plant shall apply for medical examination of all Employees for issuance of a certificate of medical examination.
Failure to adhere may attract a fine of two thousand shillings or imprisonment of up to three months.
Businesses shall be inspected to ensure compliance prior to issuance of the certificate.
Advertisement Permit
The County Outdoor Advertising Control Act, 2020 provides that any person who intends to engage in outdoor advertising shall apply for an outdoor advertising licence. An advertisement is defined as a notice or representation employed for the purposes of drawing the attention of the public to or promoting any product or service. Failure to obtain a licence could lead to imprisonment for six months or a fine of up to two hundred thousand shillings. Each County assembly is mandated to formulate legislation on issuance of permits. The Nairobi City County Finance Act provides for the fees payable for advertisements in Nairobi.
Not all notices qualify as advertisements requiring licences. The following are not regarded as advertisements requiring a licence: advertisements on enclosed land with no public access; advertisements relating to the location or direction of a religious institution; advertisements relating to a public education institution or public medical institution; advertisements displayed inside a building, which is not visible from outside the building; or advertisements on vehicles with a licence from another county.
Pest Control Certificate
The Pest Control Products Act, 2012 provides that every person who owns, or operates or is in charge of or who intends to handle, use, distribute, transport or deal in a Pest Control Product shall apply for a permit.
Any person who manufactures, packages, stores, displays, distributes, uses or advertises any pest control product, without this certificate shall be guilty of an offence and shall be liable to imprisonment for a term of up to two years, or to a fine of not less than two hundred and fifty thousand shillings or to both.
Conclusion
Obtaining the requisite business licenses is essential for SMEs to operate legally in Kenya. At CM SME Club, we specialize in guiding businesses on regulatory requirements. Contact us https://cmsmeclub.com/ for compliance support.
Email law@cmsmeclub.com
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