Starting a hotel in Kenya is not as easy as one would imagine considering the number of licenses and permits required.
Business people seeking to start a hotel in Nairobi or any other part of the country need to possess more than twelve licenses.
However, President William Ruto and Trade CS, Moses Kuria, promised to collapse these licenses into a single permit by January 2023.
Some of the licenses you need prior to the new changes include:
County Government License - County governments, issue this permit to any business operating within the county. The license is typically renewed on an annual basis.
National Government License - The permit is given by the national government through the ministry of tourism to the establishment.
Ministry of Health license - The Ministry of health certifies that the establishment meets all health and safety requirements through the issuance of this license.
Signage License - The signage license is usually issued by the county government, permitting the business establishment to have an outdoor advertising board.
Music Copyright License - Issued by the Music Copyright Society of Kenya (MCSK), permitting the business to play MCSK-licensed music in the establishment.
National Environment Management Authority (NEMA) License - NEMA certifies that the business meets all the requirements with regard to environmental conservation and waste disposal.
Covid-19 License - Introduced by the Ministry of health to prevent the spread of COVID-19 and certifies that the business has met the social distancing requirements.
Business Permit - Issued by the national government through the citizen platform.
Fire Inspection - Certifies that the business is sufficiently prepared to handle fire breakouts.
Liquor Permit - The permit is issued by the county government to permit the hotel to sell alcoholic drinks at the establishment.
NSSF - A business is expected to provide NSSF cover for every employee working at the establishment.
NHIF - It is a mandatory requirement to provide NHIF cover too for every employee working at the establishment.
Different stakeholders have been pushing the government to merge some of these licenses and permits to increase the ease of doing business.
Licenses were cited as a major detriment to the growth of small-medium enterprises (SMEs) and entrepreneurship in Kenya.
According to data from the Kenya National Bureau of Statistics, 450,000 SMEs close down businesses in Kenya every year, with over 80 per cent of them shutting down before their first anniversary.
Furthermore, approximately 30,000 SMEs close shop in Kenya every month and at least 1,000 every day. Ironically, the Kenya National Bureau of Statistics points out that 1,000 businesses are registered daily in Kenya.
