Hotel Business in Kenya

Are you working on a hotel business plan? Starting a hotel business in the Kenyan context may range in context. From small establishments, lodges, camps or even five-star hotels. Hotels and restaurants are regulated by the Hotels and Restaurants Act (CAP 494).

There are various permits and licenses required depending on the level of operations and your target customers. These are governed by various laws. Some are issued by county governments. Others by the National government through various organizations. This business review looks into different business licenses including national, county and environmental licences.

What licenses do I need for my Hotel business?

Are you wondering how to start a small hotel in Kenya? Are you an investor who wants to start a big five-star hotel business? There are however basic requirements for most of the hospitality industry. However, in most cases, it will be dependent on the size of the business, and location among other factors. It is important to ask a professional to guide you on the right licenses for your business at the planning stage so are to reduce the level of risk related to non-compliance.

At Zelena Africa, we will guide you on the most important documents depending on the level of business, we will also take care of your Environment, Health and Safety need while we leave you to run your business.

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Business Name and Business Registration

The process of registering a hotel business in Kenya requires compliance with relevant regulations and obtaining necessary licenses and permits. This is where you take a step to actualize your business ideas. These include name search, and registering the business name. The company registration process can be done online.

Business Permit

For those planning to operate a hotel business, it’s essential to obtain a business permit. The cost of the permit may vary depending on the location and type of establishment, as each county has its finance bill that sets the charges for business permits. Therefore, it’s crucial to research and understands the specific requirements and fees for the hotel business permit in the particular county where you plan to operate to ensure compliance and avoid any legal issues.

In Kenya, businesses are required to obtain permits from their respective county governments to operate legally. Nairobi County business permits vary depending on the type of business, with fees ranging from Ksh 2,000 to Ksh 100,000 per annum. For instance, a general trader’s permit in Nairobi County costs Ksh 5,000 per year, while a liquor license costs Ksh 30,000. On the other hand, Mombasa County business permits also have different fees for various business types. For instance, a small shop in Mombasa County pays Ksh 5,000 per annum, while a supermarket pays Ksh 50,000. It’s essential to note that failure to obtain the required business permit can lead to legal action or the closure of the business.

NEMA License

A NEMA license is obtained after carrying out an environmental impact assessment done by a registered lead expert or company. This is done for classes of hotels that mostly involve construction and are of a particular size. We can not ignore the importance of environmental impact assessment in development.

how to get an environment license in Kenya

A registered expert will help determine whether your hotel requires an EIA through a process called Screening.  Zelena Africa Consortium experts will help you with an EIA if it is required. Our company offers EIA services. You may reach us on 0722399018.

Health Certificates

A health certificate is one of the requirements for hospitality management in Kenya. This is mandatory for all food handlers. Health certificates for workers and the establishment are obtained from the nearest government/county health facilities or county offices. And dispensaries. There are several tests carried out at a fee of 700 shillings.

Liquor License

It is issued by the county government, mostly together with the business permit. The officers from the county will visit your establishment to inspect the amount you will pay for this license. It is renewed annually and is compulsory for all businesses offering liquor in their establishments. The liquor license is supposed to be displayed as per the Liquor licensing act Cap 21.

MCSK/KAMP/PRISK

Kenyan Artist is paid for the music that is played in hotel establishments. The hotels pay this money to the government. Until recently, these licenses were separate but have since been merged. They include; the Performers Rights Society of Kenya, the Kenya Association of Music Producers, and the Music Copyright Society of Kenya. The license allows establishments to play local music.

You need to collect a form for registration. The officers will come to your establishment, do an assessment and then send you the bill. It is important to take a proactive role to reach out to them.

Tourism Catering Levy

The catering levy is meant to develop the tourism sector. It is normally 2% of the accommodation, food, and drinks and is remitted every month by the 10th failure to which you get a penalty of 5000.

Fire inspection compliance certificate

This was first regulated in 2015. The certificate is issued by the county government. Ensure you have knowledge of appropriate fire extinguisher types before investing. In Kenya, fire and safety certificates are mandatory for public buildings, including schools, hospitals, malls, and offices, to ensure the safety of occupants in case of a fire emergency. The certificate is issued after a thorough inspection of the building’s fire safety equipment and compliance with fire safety regulations. Failure to obtain the certificate or comply with the set safety standards can lead to hefty fines or the closure of the establishment. I

For fire and safety training contact Zelena Africa at @0722399018

Effluent Discharge License by NEMA

This is issued by NEMA to verify that the discharge to the environment is as per recommended standards. Effluent is tested by NEMA-accredited laboratories. The law requires establishments to test their effluent at different points regularly.

TRA License

The tourism regulatory authority will give you an operating license for your hotel or restaurant business after you have obtained all other licenses and permits. They will also access your establishment for classification.

Registration of the Workplace by DOSHS

Registration of the workplace is required for any business. This is under the Occupational Health and Safety Act of 2007. Most businesses especially SMEs in Kenya have not registered although bigger hotels may not get away with it. This is regularly evaluated for health and safety. Once registered, you are required to carry out annual audits.

Signage

In business, you will need to tell your clients to exist through advertising. In that case, you put signage with directions. This you will have to pay to the county council. This is dependent on your location. Different counties have different charges

Other General requirements

Ensure you register your business for tax and have a valid tax compliance certificate. Register your employees and the facility with the National Social Security Fund (NSSF), Also register for the National hospital insurance fund (NHIF) both as an employer and employee.  Ensure you get your NHIF login through their online system. Depending on the source of your water and location, you may need to liaise with the Water Company in your area.

In some counties like Nairobi, you pay for both consumption of water and the discharge of sewage to their sewer system which is calculated as the percentage of water consumed. For power, liaise with Kenya Power and if you are producing your power you need to register with the Ministry of Energy. You will also need to ensure the premises and your workers. In some cases, you will have to comply with the development plans of the area.

Hotels owned by International Organizations and Foreigners

There are other requirements for people and companies with different Nationalities. These include business registration, work permits for workers, and investment certificates. You will need a VAT certificate if your turnover is over Kshs. 500, 000.

Conclusion

When starting a hotel business in Kenya it is good to have the right licenses and permits. This will ensure that you have fewer risks and fewer disruptions. With the right papers, you will not need to pay bribes to several officials. The Environment Impact Assessment will be useful in advising on all the licenses and permits you require for your business. Our company Zelena Africa Consortium Company Limited will help you carry out EIA, and obtain licenses on time. You can email us at info@zelenaafrica.com or call us on 0722399018. Contact person Faith Wanjiru Waruguru

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