How to get a courier Licence in Kenya

Kenya’s booming e-commerce scene and economic growth have fueled demand for reliable courier services. The market is a mix of established international players and local companies, with tech startups offering innovative solutions & regulations being put in place to ensure secure deliveries and fair competition.

How to get a courier Licence in Kenya

While competition is fierce, opportunities abound in underserved areas and B2B sectors. Technological advancements, collaboration, and sustainability are shaping the future of this promising industry for both domestic and foreign investors.Lets dive into the process of getting a courier licence in Kenya as a foreign or local investor.

Step by step guide on starting a Courier Business in Kenya

Step 1:Business plan

A business plan is a comprehensive document that lays foundation to your business. A well-written business plan is a multi-purpose tool for your Kenyan courier venture. Not only does it demonstrate your market knowledge, operational strategy, and financial projections to the Communication Authority of Kenya (CAK) when applying for your license, but it also becomes a persuasive document for potential investors, showcasing your company’s growth potential and profitability. Most importantly, the business plan serves as your roadmap, outlining target markets, services, marketing strategies, and financial goals.

Step 2: Company Registration

The eCitizen portal allows Kenyans to establish their courier business as either a sole proprietorship or a private LLC. Once registered, the documents will be used to apply for the CAK’s courier license.

Foreign Ownership: Kenya welcomes foreign investment in the courier sector, but requires a minimum of 30% Kenyan shareholding within 3 years of licensing. Consider a Limited Liability Company (LLC) structure.

Navigate eCitizen: Register your company through the eCitizen portal (https://accounts.ecitizen.go.ke/). This involves:
- Selecting a unique name (conduct a pre-registration search).
- Appointing directors and shareholders (including Kenyan shareholder
- Submitting required documents (e.g., identification documents, shareholding structure,registered address in Kenya,description of the business activities,etc.For further details on company registration process check this link;

3. Additional Requirements:

Business Permit: Obtain a business permit from the relevant county government where your main office will be located.
Physical Office: Secure a permanent physical office space in Kenya.
Bank Account: Open a dedicated corporate bank account for your business transactions.
Compliance: Familiarize yourself with Kenyan regulations concerning customs, taxes, and employment for courier services.

Step 4: The procedure to Obtain the courier licence in kenya from CAK.

The Communication Authority of Kenya (CAK) regulates courier services and issues the necessary licenses. Here’s how to navigate the process:
Application: Apply online through the CAK website (https://www.ca.go.ke/) or visit their physical office.
The application process involves a non-refundable fee of Ksh 5,000.
After your application is reviewed and approved by the Communication Authority’s licensing committee, your name will be published in the Kenyan Gazette. This gives interested parties 30 days to raise any objections. If no objections are received within that timeframe, your application will move forward to the board for final consideration.

The following requirements are needed to obtain courier licence in Kenya;

A copy of the original certificate of shareholding from the Registrar of Companies listing the directors and shareholders of the company and details of their shareholding (CR/12) Not Older than 2 months.
Note that companies wishing to be considered for a license in the communications sector must allot a minimum of 30% of their total shares to individual Kenyan citizen on or before the end of three years after receiveing a licence.
Tax compliance certificate.
Detailed business plan: This should showcase your understanding of the market, operational strategy, financial projections, and growth strategy for your courier service.
Registered and physical office location details.
Application fee (As advised by the CAK).

Additional Resources:

Beyond the Basics:

Seek Professional Guidance: Consider consulting a business consultant specializing in foreign investment in Kenya. They can navigate legalities, ensure compliance, and potentially expedite the process.Reach out to us today for free consultation.

By following these steps and seeking expert advice, you can position your courier business for success in the Kenyan market. Remember, a well-defined business plan, a commitment to compliance, and a focus on innovative solutions will be key to carving out your niche in this dynamic industry.