Insights
How to Hire Employees in Kenya
Insights · By Chen ChunJie · Published 8 November 2026
A foreign company can hire in Kenya in three ways: set up a Kenyan company and employ people directly, use an employer of record, or engage independent contractors for defined projects. This guide explains which route fits, what the Employment Act requires, what payroll involves and how employment ends lawfully.
Last reviewed in November 2026 against the Employment Act 2007, the Regulation of Wages Orders of May 2026, the NSSF Act, the Social Health Insurance Act, the Affordable Housing Act and KRA guidance. Rates and limits change, so we confirm them for each engagement.
Three ways to hire in Kenya
| Route | Who employs the person | Best for |
|---|---|---|
| Your own Kenyan company | Your subsidiary or registered branch | Long-term teams and a permanent business in Kenya |
| Employer of record | A Kenyan employer such as our Local Team | First hires, testing the market, or staff needed before your entity is ready |
| Independent contractor | No employer; a commercial contract | Defined projects by a professional with their own clients, tools and schedule |
Calling an employee a contractor does not change the law. Kenyan courts look at how the work is actually done, so a person who works set hours under your direction, for you only, is likely an employee. For project work, see On-Demand Talent in Kenya.
Contracts and probation
Employment of three months or more needs a written contract that sets out the particulars in section 10 of the Employment Act: the job, pay and how it is calculated, working hours, leave, notice and the place of work. Probation can last up to six months and can be extended once by up to six more with the employee’s agreement; either side can end it with seven days’ notice.
Fixed-term contracts are common, but the label is not decisive. In July 2026 the Court of Appeal held that continuous casual or back-to-back fixed-term engagements for work that is not temporary can be treated as longer-term employment. Match the contract to the real role.
No Kenyan company yet? Our Local Team can be the legal employer while you manage the work. See Employer of Record in Kenya.
Pay, housing and payroll deductions
Minimum wages are set by occupation and location in the Regulation of Wages Orders. From 1 May 2026, a general labourer in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret earns at least KES 18,047.40 a month, excluding housing allowance. Section 31 of the Employment Act requires the employer to provide housing or a housing allowance, which most employers include in a consolidated salary.
Each month the employer deducts PAYE, NSSF, SHIF and the Housing Levy, adds its own NSSF and levy contributions, and pays the NITA levy. The details are in our Kenya PAYE guide. Salaries are paid in Kenya shillings, usually by bank transfer or M-Pesa.
Working time and leave
| Rule | What applies |
|---|---|
| Normal hours | 52 hours a week under the Regulation of Wages (General) Order, with at least one rest day in seven |
| Overtime | 1.5 times the hourly rate; twice the rate on rest days and public holidays |
| Annual leave | At least 21 working days with full pay after 12 months of service |
| Sick leave | After two months, seven days on full pay and seven on half pay a year |
| Maternity and paternity | Three months of fully paid maternity leave; two weeks of paternity leave |
Ending employment lawfully
A termination needs a valid reason and a fair procedure. For misconduct or poor performance, the employee must hear the reasons and be able to respond, with a colleague or union representative present. Notice is 28 days for monthly-paid employees unless the contract gives more, and pay in lieu is allowed. Unfair termination can cost up to 12 months’ pay.
Redundancy needs at least one month’s notice to the employee and the labour officer, fair selection and severance of at least 15 days’ pay for each completed year of service. Every leaver receives a certificate of service.
Hiring a foreign national
A foreign employee needs a Class D work permit before starting work. The Kenyan employer applies, shows why the role needs a foreign specialist and usually explains how a Kenyan understudy will be trained. See Expat Employment in Kenya.
FAQ: hiring employees in Kenya
Can a foreign company hire in Kenya without a local entity?
Not directly. It needs a Kenyan employer, either its own company or an employer of record.
Is a written contract required in Kenya?
Yes, for employment of three months or more.
How long can probation last?
Up to six months, extendable once by up to six more with the employee’s agreement.
What is the notice period?
28 days for monthly-paid employees, unless the contract gives more.
Hiring your first employee in Kenya?
Our Local Team employs the person, runs payroll, PAYE, NSSF, SHIF and the Housing Levy, and handles the paperwork, while you manage the day-to-day work.
Related
How we employ your team in Kenya.
Contracts, leave, termination and more.