How to Start a Partnership Business in Kenya in 2024

If you want to start a partnership business in Kenya, you might have encountered questions about legal requirements, financial considerations, and strategic planning. Navigating such intricacies may seem daunting because you want to start the business based on Kenyan laws for the best operation. If you’re in that situation, we want to discuss how to start a partnership business in Kenya the right way.

From the required documents and fees to the partners, here is everything you need to get started with a partnership business in Kenya. Keep reading!

Requirements for a Partnership Business in Kenya

Before you start a partnership business in Kenya, you’re required to have the following:

Name of Business

You’ll need to choose a suitable name for your partnership. Ensure the name is unique and does not infringe on any existing trademarks or businesses. 

You can search for and register your partnership business name through the eCitizen Portal. Once you’re logged into the portal, navigate to the “Business Registration Service” as shown by the image below.

Business Name Registration in Kenya

Click the “Make Application” button and then navigate to “Business Name Registration.” Finally, provide your proposed partnership business name and its address details.

After providing the required details, pay the filing fee of Ksh. 950 for a partnership business name. After payment, prepare the required documents for upload. These documents include:

  • IDs of the business owners
  • Copies of the KRA PIN Certificate of the business owners
  • Passport photos

After submitting the above copies, you’ll receive feedback on your registration status within 1 to 2 days. If the process was successful, you’ll be issued with a certificate of registration. You can download the certificate directly from the eCitizen Portal.

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Nature of the Business

Clearly describe the type of business or the activities the partnership will engage in. This can be a brief overview of the products or services you intend to offer.

Full Names of the Partners

List the full names of all partners involved in the partnership. Include their first name, last name, and any other relevant identifying information.

Contact Information

Provide the contact details for each partner, including addresses, phone numbers, and email addresses.

Profit/Loss Sharing Ratio

Specify the percentage or ratio in which profits and losses will be shared among the partners. This should be clearly defined in your partnership agreement.

Passport Photographs

You will need recent passport-sized photographs of all the partners. These are usually required for official documentation. 

Physical Address

Provide the physical address of the partnership’s place of business, including the street address, city, and any additional location details.


Each partner must sign the BN2 form to indicate their consent and agreement to form the partnership. The BN2 form is a Business Name Registration form used in Kenya.

Also Read: List Of Viable Investment Ideas In Kenya 

Requirements of Partnership Deed

A partnership deed is a legal document that outlines the terms and conditions of a partnership agreement between two or more individuals or entities who wish to conduct business together. 

While partnership deeds can vary depending on the specific needs and objectives of the partners, some requirements and provisions are typically included in a partnership deed in Kenya. They include:

  • Partners Information: Full names and addresses of all partners involved.
  • Business Name: The name under which the partnership will operate. It should be a unique and distinguishable name that is not already in use by another business in Kenya.
  • Nature of Business: A clear description of the nature of the business or the primary activities the partnership will engage in.
  • Duration of Partnership: Specify whether the partnership is for a fixed period or is ongoing until further notice.
  • Capital Contributions: Specify the capital contributions of each partner, both initial and subsequent contributions. This includes cash, assets, or other resources contributed to the partnership.
  • Profit and Loss Sharing: Outline the percentage or method by which profits and losses will be shared among partners. This should be fair and per the partners’ contributions and efforts.
  • Management and Decision-Making: Define how management decisions will be made within the partnership. This can include whether decisions will be made by a majority vote or based on specific partner roles and responsibilities.
  • Authority and Powers: Specify the authority and powers of each partner within the partnership. Also, define the scope of individual partner responsibilities and any limitations on their authority.
  • Drawings and Salaries: Outline the rules and limits for partners’ salaries and drawings from the partnership.
  • Admission of New Partners: Describe the procedure and criteria for admitting new partners, if applicable.
  • Retirement and Resignation: Define the process for partners to retire or resign from the partnership, including distributing their share of assets.
  • Dispute Resolution: Specify how disputes among partners will be resolved, whether through mediation, arbitration, or other means.
  • Dissolution and Liquidation: Outline the process for dissolving the partnership, including the distribution of assets and settlement of liabilities.
  • Accounting and Records: Establish requirements for maintaining financial records and the frequency of financial reporting.

Process of Registering a Partnership Business in Kenya

The registration of a partnership business in Kenya takes 3-5 days. The registration fee required is Ksh. 25,000. To register your entity, follow these steps in order: 

  1. Submit three preferred entity names. This ensures that your partnership business name isn’t similar to another one.
  2. Execute Form BN2 – Application for Registration. 
  3. Make the required payment to the registrar of companies. 
  4. The registrar confirms the reserved name and issues a registration certificate.