A Single Business Permit (SBP) is a crucial document for anyone running a business in Kenya.
Issued by county governments, the SBP ensures that businesses operate legally within their jurisdictions.
Whether you’re starting a new venture or running an existing business, obtaining this permit is a mandatory step to comply with Kenyan regulations.
What is a Single Business Permit?
A Single Business Permit is a license issued by county governments to allow businesses to operate within their locality.
It serves as a unified document for business compliance, replacing the need for multiple permits for different operational aspects.
A single business permit is important for three key reasons:
Legal Compliance
An SBP IS required by law to operate any business in Kenya.
Supports Local Development
SBP fees contribute to infrastructure and public service improvements.
Avoids Penalties
Operating without an SBP can result in fines or business closure.
Who Needs a Single Business Permit?
The permit applies to all businesses, including:
- Sole proprietorships
- SMEs (Small and Medium Enterprises)
- Large corporations
- Non-profit organizations
- Home-based businesses
How to Apply for a Single Business Permit
The process of obtaining an SBP varies slightly across counties but generally follows these steps:
Step 1: Determine Your County
Identify the county where your business is located.
Each county has specific offices or platforms for processing permits.
Step 2: Gather Required Documents
Most counties ask for the following when you apply for a single business permit:
- Copy of business registration certificate.
- National ID or passport of the business owner(s).
- KRA PIN certificate.
- Physical address of the business (including lease agreement or utility bill if applicable).
- Previous year’s SBP (if renewing).
Step 3: SBP Application
There are two main ways to apply for an SBP in Kenya, namely:
Online (eCitizen) Application
The process of applying for a single business permit via your eCitizen account entails:
- Logging into your eCitizen account.
- Navigating to the relevant county government services.
- Selecting “Single Business Permit” and completing the application form.
- Uploading the required documents.
- Paying the applicable fee via M-Pesa or other payment options.
- Downloading the permit once approved.
In-Person Application
The alternative process when applying for an SBP in-person involves:
- Visiting your county’s licensing office.
- Filling out the application form and attaching the required documents.
- Paying the fee at the designated bank or county office.
- Collecting your permit after approval.
Fees for a Single Business Permit
The cost of an SBP depends on three key factors, namely:
Type of Business
Retail shops, restaurants, and offices pay different rates.
Size of the Business
Fees vary for small, medium, and large enterprises.
Location
Urban areas typically have higher fees than rural ones.
As such, estimated fees for an SBP based on business size are as follows:
Small Businesses
Ksh. 5,000–10,000 annually.
Medium Businesses
Ksh. 10,000–20,000 annually.
Large Enterprises
Ksh. 20,000–50,000 annually.
SBP Annual Fee Example
In Nairobi County, a small retail shop may pay Ksh. 7,000 annually, while a large manufacturing company could pay Ksh 40,000 or more.
Renewing a Single Business Permit
An SBP must be renewed annually to remain valid.
The renewal process is similar to the initial application and involves:
- Visiting the county offices or using the eCitizen platform.
- Submitting your previous permit number.
- Paying the renewal fee.
- Collecting or downloading the updated permit.
Penalties for Operating Without an SBP
Failing to obtain or renew your Single Business Permit results in three adverse outcomes, namely:
- Fines or penalties determined by the county government.
- Business closure by county enforcement officers.
- Additional charges for late renewal.
Benefits of Having a Single Business Permit
Three direct benefits to a business that has an SBP include:
Legal Operation
The permit protects your business from fines and shutdowns.
Enhanced Credibility
An SBP boosts customer trust and assures clients of the legitimacy of your business.
Access to Government Services
An SBP provides proof of compliance when accessing government services, tenders, funding, and more.
Challenges in Obtaining an SBP
Notable challenges to obtaining a single business permit in Kenya include:
Varied Requirements Across Counties
Different counties have different processes, which can confuse new applicants.
Bureaucracy
Long queues or delays in approval are common in in-person applications.
Cost for Small Businesses
High fees can strain small business owners.
Tips on Getting an SBP
- Use the eCitizen portal to streamline the process.
- Plan ahead to avoid last-minute rushes.
- Inquire about reduced fees for startups or specific business categories.
Take Away on Obtaining an SBP in Kenya
A Single Business Permit(SBP) is a critical document for any business in Kenya, ensuring compliance with local regulations and supporting county development initiatives.
By understanding the application process, fees, and renewal requirements, you can operate your business smoothly and legally.
Whether you’re a small trader or running a large corporation, obtaining and maintaining an SBP is essential for success.