Kenya and the UK have strong trade ties. Whether you're exporting from Kenya or setting up a Kenyan entity for a UK business, here's the practical overview.
Kenya and the United Kingdom have deep economic ties — historical, diplomatic, and increasingly commercial. The UK is Kenya's third-largest export market, and bilateral trade and investment between the two countries has grown significantly since Kenya signed the UK-Kenya Economic Partnership Agreement (EPA) in December 2020.
The EPA allows Kenyan exports to the UK at zero tariffs across most categories. This matters most for Kenya's agricultural sector (flowers, tea, vegetables, coffee) but also benefits manufactured goods and processed products. If your business exports to the UK, the EPA likely provides duty-free access — verify specific commodity codes with Kenya Revenue Authority or the UK HMRC.
UK company opening a Kenyan entity: Companies House registration in the UK is separate from Kenyan legal presence. To operate legally in Kenya, a UK company should either register a branch office or incorporate a subsidiary limited company in Kenya through BRS. A branch requires filing copies of the UK company's constitution and appointment of a local director. A subsidiary is a separate Kenyan company with its own directors and shareholders.
Kenyan business entering the UK market: You can sell to UK customers from a Kenyan entity, but if you want a physical UK presence, you register with Companies House in the UK (straightforward, online, approximately £12). You'll also need UK bank accounts, and possibly UK VAT registration if your UK sales exceed £90,000/year.
Cross-border payments between Kenya and the UK typically go through SWIFT bank transfers, which take 2–5 business days and attract international wire fees. For smaller, faster transactions, services like Wise and Remitly offer better rates than traditional banks for M-Pesa-to-UK bank or Kenyan account deposits.
For e-commerce businesses selling to UK customers from Kenya, Stripe and PayPal both operate in Kenya, supporting GBP-priced checkout with Kenyan settlement.
Kenya and the UK have a Double Taxation Agreement (DTA) that prevents the same income from being taxed in both countries. The DTA covers dividends, royalties, and management fees between related entities. Consult a tax professional if your structure involves profit repatriation.
Mycrea builds e-commerce and B2B platforms for Kenyan companies serving international markets — talk to us about what the right digital infrastructure looks like for your cross-border business.
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