While trade marks and patents often take the center stage when we talk about intellectual property (IP), trade secrets offer a quieter form of protection that can be just as powerful.

What is a trade secret?

A trade secret is any confidential business information that helps your company operate more effectively or stand out from the competition. It is the foundation of how your business operates often overlooked but extremely valuable.

Trade secrets can include onboarding procedures, training methodology or the unique Excel formulas your team uses daily. This could also be something ingrained in your daily operations such as your client list, pricing structure or sales approach.

Trade Secrets vs. Trade marks

Under Kenya’s Trade Marks Act (Cap 506), a trade mark is a recognizable sign or logo that identifies your brand. It is registered publicly with Kenya Industrial Properties Institute (KIPI)

A trade secret, on the other hand:

• Does not require registration;
• Stays out of the public eye; and
• Is protected through internal systems and agreements.

Think of it this way: A trade mark says, “This is who we are.” A trade secret says, “This is how we do it better.”

One of the best examples is Coca-Cola: while the name and logo are protected trade marks, the formula is a trade secret closely guarded for over a century.

What makes trade secrets different from trade marks or patents is that they are not registered. Their strength lies in staying confidential which also means they are only useful as long as they remain protected.

Practical ways to protect Trade Secrets in your business

Protecting what matters does not require a massive legal budget. Here is a smart, proactive approach:

• Know your secret sauce: Identify what gives your business a unique advantage.
• Limit who knows it: Share only with those who truly need to know.
• Use non-disclosure agreements (NDAs) regularly: These are not just for big corporations as they are essential for any business.
• Educate your team: Build a culture of confidentiality through policies, onboarding and digital safeguards.
• Stay compliant: Use the Companies Act to structure internal roles and responsibilities around protection.

Trade Secrets as a long-term competitive advantage

Trade secrets do not just protect individual ideas, they grow with your business in the sense that they evolve in the background thus quietly increasing in value as the company scales.

Here is how trade secrets fuel long-term success:

• Foster ongoing innovation without the need for public disclosure;
• Safeguard efficient internal systems that others cannot easily replicate; and
• Encourage a culture of knowledge-sharing and protection.

In industries like manufacturing, fashion, food & beverage, fintech speed, innovation, and differentiation are key. Trade secrets give you:

• Low-cost protection that grows with you;
• No expiration as long as you keep them confidential; and
• Enforceability under contract law (NDAs, employment agreements).

Some of the most valuable assets in your business may never appear on a balance sheet. However, that does not mean they cannot be protected, leveraged and monetized. By using Kenya’s Trade Marks Act to protect your brand and the Companies Act to strengthen internal governance, you can turn invisible value into a competitive fortress that is built to last.

Whether you are just starting out or preparing for growth, now is the time to take trade secrets seriously. Because sometimes, what you do not share is what keeps you winning.

Should you require any further information, please contact us at info@cfllegal.com.