Nairobi City County has unveiled a new business licensing framework that will classify businesses by their type, size and workforce as part of a cost-based system for calculating licence fees.
The changes, contained in the Nairobi City County Tariffs and Pricing Policy 2025–2030, replace the historical pricing model with one that links licence charges to the actual cost of services provided by the county.
Under the policy, businesses will first be grouped into eight categories based on the Nairobi County Industrial Classification System (NAICS).
These include general traders and retail services, the informal sector, transport and communications, agriculture, accommodation and catering, professional and financial services, private education and health, and industrial plants, factories, workshops and contractors.
How Nairobi County Will Set Business Licence Fees
The county will then classify businesses into six size-based categories—Mini, Small, Medium, Large, Mega and Hyper—using the size of business premises and the number of employees.
According to the policy, the overall unit cost for trade licences has been set at KSh844 per square metre, with licence fees calculated based on a business’s classification.
“The County implements an Industrial Classification System that classifies businesses while considering their size to calculate the various unit costs. Based on the set tariffs on trade licences, the overall unit cost per square metre shall be KSh844,” the policy states.
The county said the trade licence fees are intended to recover the cost of services provided to businesses, including firefighting, street lighting, road access, stormwater management and waste collection.
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Food Vendors and Advertising
Food handlers will pay KSh2,349 every two years for medical examination certificates, while food safety services will cost KSh7,126 per premises annually. Businesses requiring pest control clearance certification will pay KSh6,495.
For outdoor advertising, including billboards, banners and digital screens, the county estimated the annual cost of managing each client or premises at KSh24,539, with fees varying depending on location and visibility.
The policy also introduces a wayleave charge of KSh113 per metre per day for companies laying infrastructure such as fibre optic cables and power lines on public land. Nairobi County said it will use a Geographic Information System (GIS) to map infrastructure routes and improve billing accuracy.
While the policy references liquor licensing and the regularization of unauthorized developments, it does not introduce new liquor licence charges. Property owners seeking to regularize unauthorized developments will, however, be required to pay the applicable fees through registered professionals.
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According to the county, all licence fees under the new framework will be guided by the principles of affordability, transparency, equity and cost recovery to ensure businesses pay charges that reflect the actual cost of county services.
Why Wayleave Tariffs
According to the policy, the wayleave tariff is intended to protect public infrastructure and regulate the use of public land by utilities and other service providers.
The county said the levy will help recover the costs of road reinstatement, inspections and project coordination, while generating predictable revenue from infrastructure access and land use.
It is also aimed at improving transparency in the allocation of public spaces and ensuring equitable access and compliance among all service providers.
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