Kenyan law provides for a number of business forms for investors. These include:

Limited liability Company

Kenya allows for the formation of both private and public limited liability companies (LLC).

Key aspects of a Private LLC include:

Requires at least 2 members and a maximum of 50
May not freely transfer shares
Shares may not be offered to the public

Key aspects of a Public LLC

Requires at least 7 members and no maximum limit
Shares of the company are freely transferable
Allowed to offer its shares publicly, including listing on a stock exchange

Partnerships

Kenya allows for the formation of both general and limited partnerships.

Key aspects of a general partnership include:

Limited to a maximum of 20 partners - if over 20 partners, the partnership must be formed as a company
Each partner has unlimited liability
A partnership can be formed by any type of agreement, which need not be formal but is typically in writing
Business of the partnership can be done under the names of the partners, or under the name of the partnership if registered

Key aspects of a limited partnership include:

A limited partnership must have at least one general partner with unlimited liability, and one limited partner whose liability is limited to their contribution to the partnership
General partners can take part in the management of the partnership, while limited partners may not

Branch Office

Foreign companies are able to conduct business in Kenya through the establishment of a branch office. They may also establish a representative or liaison office.

Sole Proprietorship

A sole proprietorship may be formed in Kenya with the owner having unlimited liability for the business. Business of the sole proprietorship can be done under the name of the partner, or another business name if registered.

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