Restaurant licensing in Nairobi involves two levels of government. The Nairobi City County Government controls most of the day-to-day permits, while national bodies license tourism businesses, register workplaces and enforce food safety law. Missing one approval can mean a closure notice in the first month of trading. This guide sets out the main permits a new restaurant, cafe or bar needs, who issues them and the order in which to approach them.
Who regulates what
The Constitution of Kenya divides the work. Part 2 of the Fourth Schedule gives county governments the licensing and control of undertakings that sell food to the public (paragraph 2(d)), liquor licensing (paragraph 4(c)) and trade licences (paragraph 7(b)). Tourism policy and development remain national functions (Part 1, paragraph 34). In practice, this means a Nairobi restaurant deals with City Hall for its business permit, health licensing and liquor licence, and with national agencies for its tourism licence and workplace registration.
County permits
Business permit. Every business operating in Nairobi needs a county business permit, renewed annually. Nairobi has moved to a unified business permit that combines several county charges into a single permit. In our experience, applicants should still ask for a breakdown of the charges, because health-related items such as food handlers’ medical certificates have been levied separately. Apply through the county’s online system once the premises are secured and the company has its registration documents and KRA PIN.
Public health approval. County public health officers inspect food premises before a restaurant opens and periodically afterwards. They look at structural hygiene, water supply, drainage, waste handling, toilets, storage and pest control. Kitchen staff are expected to hold valid food handlers’ medical certificates. The national standard is the Food, Drugs and Chemical Substances Act, which makes it an offence to sell food that is unwholesome or unfit for human consumption (section 3) or to prepare, package or store food for sale under insanitary conditions (section 7).
Liquor licence. A restaurant that serves alcohol needs a liquor licence from the county. Nairobi regulates this under its own county alcoholic drinks legislation and licensing board, and the rules on opening hours, location and licence categories come from the county law. The national Alcoholic Drinks Control Act, 2010 still matters for foreign-owned businesses. It prohibits selling alcoholic drinks except under a licence (section 7), makes a person who is not resident in Kenya ineligible for a retail licence (section 13(1)(d)), and allows a licence to a company to be refused if any of its directors would not qualify individually (section 16(1)). A board made up entirely of non-resident directors can therefore be a problem, so plan the board before applying. Nairobi was considering reforms to its alcohol law in 2026, so check the current county rules before you apply.
Signage and outdoor advertising. Signs, branding on the building and outdoor seating usually need separate county approval and fees. Ask the landlord what the building already has approved.
National licences and registrations
Tourism Regulatory Authority licence. The Tourism Act, 2011 defines a restaurant as “any premises on which the business of supplying food or drink for reward is carried on” (section 2). Restaurants and other food and beverage services are Class “B” enterprises in the Ninth Schedule, and section 98 prohibits carrying on a Ninth Schedule activity without a licence from the Authority. Businesses engaged in tourism activities may also have to pay the tourism levy, which the Cabinet Secretary imposes by order (section 105). A TRA licence may be transferred, but only as the Act allows (section 99), so it should be issued to the operating company from the start. Our article on tourism licensing and the Tourism Regulatory Authority covers the application process.
Workplace registration and fire safety. Under the Occupational Safety and Health Act, 2007, a person must apply to register premises as a workplace before occupying or using them as one (section 44). The Act also sets fire prevention duties, including how highly flammable substances must be stored (section 78), and safety provisions in case of fire (section 81). A commercial kitchen with gas cylinders, deep fryers and extraction ducts gets close attention. In practice, the county fire department also inspects and issues its own fire safety clearance as part of the permit process.
Tax registration. The company needs a KRA PIN, must register for the taxes that apply to it (corporation tax, PAYE for staff and, above the threshold, VAT) and must issue invoices through KRA’s electronic tax invoice system.
Restaurant licensing: the order to do things in
- Incorporate the company and get its KRA PIN. Licences should be in the company’s name, not a founder’s.
- Settle the board. If you plan to serve alcohol, make sure the directors meet the residence and fitness conditions.
- Check before signing the lease. Confirm that the premises are zoned for restaurant use, that the building can take a commercial kitchen, and that the landlord will support your applications. Make key approvals a condition of the lease, or negotiate a rent-free fit-out period.
- Fit out to health and fire standards, then book the public health and fire inspections.
- Apply for the business permit, the TRA licence and, if needed, the liquor licence, and register the workplace.
- Diarise every renewal date. County permits and liquor licences are usually annual.
Our guide to commercial lease agreements in Kenya covers the lease terms a tenant should negotiate before committing to a site.
For the wider set-up decisions that come before licensing, including the company, the Kenyan partner, premises and staff, see our guide to opening a restaurant in Kenya as a foreign investor.
How We Can Help
Clay & Associates Advocates helps foreign and local investors set up hospitality businesses in Kenya, from incorporation and shareholder agreements to lease review and licensing. If you are investing alongside a Kenyan partner, our article on shareholder agreements and articles of association explains how to protect your position. Contact our regulatory and compliance team to plan your licensing before you sign a lease.
Sources: Constitution of Kenya, 2010, Fourth Schedule; Tourism Act, 2011, sections 2, 98, 99 and 105 and Ninth Schedule; Alcoholic Drinks Control Act, 2010, sections 7, 13 and 16; Food, Drugs and Chemical Substances Act, sections 3 and 7; Occupational Safety and Health Act, 2007, sections 44, 78 and 81.
Frequently asked questions
Does a restaurant in Nairobi need a Tourism Regulatory Authority licence?
Yes. Restaurants and other food and beverage services are Class “B” enterprises under the Ninth Schedule to the Tourism Act, 2011, and section 98 requires a licence from the Authority. This is in addition to the county permits.
Can a foreign-owned company get a liquor licence?
Yes, but under the Alcoholic Drinks Control Act, 2010, a person not resident in Kenya cannot hold a retail licence, and a company’s application can be refused if any director would not qualify individually. Plan the board composition with this in mind, and check the current Nairobi county rules.
Can I open while my permits are being processed?
Do not trade before the public health inspection and business permit are in place. Operating without them invites closure, fines and later difficulty with other licences.
Who should hold the licences?
The operating company. Licences issued to an individual founder are hard to move and create problems when the business is sold or the founder leaves.
Need advice on your own matter?
Tell us what you are dealing with. You will know what it involves and what it costs before you commit.
This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.
