Top Counties for Starting a Business in Kenya: Cost, Licensing, and Market Access Compared
A 2025 guide to choosing the best location for your enterprise
Kenya’s counties offer vastly different business environments. From licensing fees and infrastructure to market access and dispute resolution, where you choose to set up your business can determine how fast you grow—or how much you spend. In 2025, new data from the County Business Support Index (CBSI) and regional investment reports reveal which counties are most business-friendly, and why.
This article compares top counties across key metrics: startup costs, licensing efficiency, infrastructure, and market access.
1. Nairobi County
- Population: Over 4.3 million
- Strengths:
- Kenya’s economic hub with access to banks, legal firms, and corporate headquarters
- Advanced digital infrastructure and transport networks
- Diverse economy spanning tech, retail, and finance
- Challenges:
- Highest licensing costs in Kenya—up to KSh 106,556 for industrial permits
- High cost of living and congestion
- Insights:
- Ideal for scale-ups and service businesses targeting national or international markets
2. Uasin Gishu (Eldoret)
- Population: ~900,000
- Strengths:
- Ranked #1 in CBSI with an 85% support score
- Fastest county for business registration and licensing
- Strong agricultural base and logistics access via Eldoret Airport
- Licensing Cost: ~KSh 40,742 for industrial permits
- Insights:
- Ideal for agribusiness, logistics, and export-oriented ventures
3. Nakuru County
- Population: Over 2 million
- Strengths:
- Strategic location between Nairobi and Western Kenya
- Rapid urbanization and growing wholesale market
- Ranked #2 in CBSI with a 59% score
- Licensing Cost: ~KSh 80,909 for industrial permits
- Insights:
- Balanced environment for retail, manufacturing, and distribution
4. Kiambu County
- Population: Over 1.6 million
- Strengths:
- Proximity to Nairobi with lower congestion
- Real estate boom and educated workforce
- Ranked #6 in CBSI with a 36% score
- Licensing Cost: ~KSh 6,540—lowest in Kenya for industrial permits
- Insights:
- Attractive for tech startups, service firms, and satellite operations
5. Mombasa County
- Population: Over 1.2 million
- Strengths:
- Gateway for trade via Mombasa Port
- Strong tourism and hospitality sectors
- Ranked #7 in CBSI with a 28% score
- Licensing Cost: ~KSh 78,500 for industrial permits
- Insights:
- Ideal for import/export businesses and tourism-linked ventures
6. Kisumu County
- Population: Over 1 million
- Strengths:
- Access to Lake Victoria and Western Kenya
- Efficient construction permit system
- Ranked #9 in CBSI with a 27% score
- Licensing Cost: ~KSh 83,333 for industrial permits
- Insights:
- Promising for agribusiness, logistics, and regional trade
7. Kakamega and Bungoma Counties
- Strengths:
- Ranked #3 and #4 in CBSI with 56% and 50% scores respectively
- Lower licensing costs and strong agricultural output
- Insights:
- Suitable for SMEs targeting Western Kenya and cross-border markets
8. Kajiado and Machakos Counties
- Strengths:
- Rapid urban expansion and proximity to Nairobi
- Investment zones and industrial parks
- Ranked #5 and #8 in CBSI with 43% and 28% scores
- Insights:
- Ideal for manufacturing, real estate, and agro-processing
Final Comparison Snapshot
| County | CBSI Rank | Industrial License Cost | Key Advantage |
|---|---|---|---|
| Uasin Gishu | 1 | KSh 40,742 | Fast registration, export access |
| Nakuru | 2 | KSh 80,909 | Strategic location, urban growth |
| Kakamega | 3 | KSh 36,825 | Low cost, strong agriculture |
| Bungoma | 4 | KSh 53,000 | Border trade, SME support |
| Kajiado | 5 | KSh 58,500 | Urban expansion, tourism |
| Kiambu | 6 | KSh 6,540 | Lowest cost, tech potential |
| Mombasa | 7 | KSh 78,500 | Port access, tourism |
| Machakos | 8 | — | Industrial zones, agriculture |
| Kisumu | 9 | KSh 83,333 | Lake access, permits efficiency |
| Nairobi | 10 | KSh 106,556 | Market size, infrastructure |
Final Thoughts
Choosing the right county to start your business in Kenya is no longer just about proximity—it’s about cost, licensing speed, infrastructure, and market access. In 2025, counties like Uasin Gishu, Kiambu, and Nakuru offer compelling advantages for startups and SMEs, while Nairobi remains the powerhouse for scale and visibility—at a premium.
