Business Registration Service data shows that Kenya registered 149,250 business entities in the financial year ended June 30.
Kenya registered 149,250 business entities in the financial year ended June 30, an 8.2 per cent increase from 138,000 a year earlier, as entrepreneurship expands amid limited formal employment opportunities.
The latest registrations were the highest since those recorded during the year ended June 2021, when the Business Registration Service (BRS) registered 154,236 entities.
During the period under review, a total of 2,257 entities applied to be struck off from the official register, marking a marginal drop from the 2,260 that had made similar applications the prior year.
Business Registration Service Director-General Kenneth Gathuma. File | Nation Media Group
The rise in new registrations comes in an economy where nearly 90 per cent of jobs created last year were in the informal sector, according to official data, as the country continues to struggle to create quality jobs.
According to Ken Gichinga, chief economist at Mentoria Economics, limited formal employment opportunities, low wages and tax pressures are among factors that could be encouraging more people to establish businesses.
Ken Gichinga, chief economist at Mentoria Economics.
“Three things are playing here: limited opportunities in formal employment as companies slow down hiring is pushing many to start businesses, and low wage rates are leading many employed people to open side businesses to get additional income,” said Mr Gichinga.
“Businesses with high KRA [Kenya Revenue Authority] obligations are also choosing to open new businesses to start afresh,” he added.
The BRS data shows that most of the new entities were small businesses and private companies, with 84,989 business names and 62,060 private companies accounting for 147,049 registrations.
This means business names and private companies represented about 98.5 per cent of all entities registered during the year, while public, foreign and other forms accounted for the remaining registrations.
Business names increased to 84,989 from 73,624, while private company registrations eased slightly to 62,060 from 62,287 during the previous financial year. Foreign company registrations increased to 202 from 185, while limited liability partnerships fell to 476 from 522 and companies limited by guarantee declined to 784 from 894.
Monthly registrations were highest in April at 14,536, followed by February with 13,902, while December recorded the lowest total at 8,378 as festive-period activity reduced applications.
The broader economy expanded 4.6 per cent in 2025, slightly below the 4.7 per cent growth recorded in 2024, with construction, accommodation, finance and information sectors among those recording expansion.
Wholesale and retail trade, a major focus for small businesses, grew 3.6 per cent during the year, while information and communication expanded 4.8 per cent, providing additional opportunities for new enterprises.
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