Startup support
Guide for Software Start-up Requirements
Starting a software business in Kenya requires a mix of legal compliance, strategic planning, and technical readiness. This guide provides a detailed roadmap to help individual developers, small teams, and growing startups establish a strong foundation for success in the local and global tech ecosystem.
Business Structure and Legal Registration
Choosing the right legal structure is the first step toward building a credible and scalable business.
- Sole Proprietorship – Ideal for freelancers and solo developers
- Partnership – For small teams co-owning the business
- Private Limited Company (Ltd) – Best for startups seeking to scale, attract investors, or sign enterprise contracts
Tax Registration and Compliance
Registering your business with the Kenya Revenue Authority (KRA) is mandatory. KRA Requirements
KRA Requirements:
- Obtain a KRA PIN for the business and all directors/shareholders
- Tax obligations such as;Income Tax, Value Added Tax (VAT), Pay-As-You-Earn (PAYE) (if employing staff)
Intellectual Property (IP) Protection
As a software developer or company, safeguarding your ideas, code, and brand is vital. How to Protect Your IP in Kenya
How to Protect Your IP in Kenya
- Trademarks (logos, names) – Register via KIPI
- Patents – For unique algorithms or tech innovations
- Copyright – Automatically granted for original code, but formal registration adds legal protection
- Non-Disclosure Agreements (NDAs) – Use when pitching or collaborating
Data Protection and Compliance
With the rise of data-driven applications, compliance with the Data Protection Act, 2019 is essential.
- Register as a Data Controller or Processor with the Office of the Data Protection Commissioner (ODPC)
- Ensure secure data storage and access control
- Report data breaches within 72 hours
- Applicable To: eb/mobile apps that collect user data (emails, names, photos) and SaaS platforms, CRM systems, e-commerce, health, or fintech appss
Technical and Infrastructure Setup
Before launching, ensure you have the right tools and infrastructure in place.
- Consider important Tools such as: Version control(github), Project management, Code editors/IDEs, Hosting platforms
- Infrastructure Considerations: CI/CD pipeline for automated deployment, Domain name registration and SSL setup, Scalable backend, Cloud credits from programs like AWS Activate, Microsoft for Startups, or Google for Startups
Employment & Contracts
If you're hiring or collaborating, formalize working relationships with clear contracts.
- Employment contract – for permanent or temporary employees
- Freelance/Consulting agreement – for short-term or outsourced work
- IP Assignment agreement – ensures your company owns the work produced
- Service Level Agreement (SLA) – sets expectations with clients