Hire in Kenya

Kenya PEO &

Employer of Record

Hire & manage teams remotely in Kenya without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Kenya PEO EOR

Business Language

Swahili, English

Salary Currency

Kenyan shilling (KES)

Capital city

Nairobi

Time zone

UTC +3

EOR in Kenya

Kenya PEO EOR

Hire Employees in Kenya

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Kenya to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Kenya

Employer of Record (EOR) services are for companies who do not have a legal entity in Kenya, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Kenya.

2. Employee Onboarding

We sign a local labor contract with your employees based in Kenya.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Kenya.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Kenya

Professional Employment Organization (PEO) services are for companies who have a legal entity in Kenya, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in Kenya are based on progressive tax brackets.

In Kenya, the income tax system for employees is administrative, which means that employers are responsible for withholding and remitting income tax to the Kenya Revenue Authority (KRA). This PAYE (Pay-As-You-Earn) system simplifies the tax filing process for employees, as they do not need to declare their income tax directly to the government unless they have other sources of income or need to claim deductions.

Tax Brackets:

Sample Calculation

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Employer Contribution

Employers in Kenya are required to make contributions to several statutory funds:

  • National Social Security Fund (NSSF): 6% of the employee’s monthly salary (capped at KES 2,400).
  • National Hospital Insurance Fund (NHIF): Varies based on the employee’s salary scale, up to a maximum of KES 1,700 per month.

    Employee Contribution

    Employees also make mandatory contributions to the NSSF and NHIF:

  • NSSF: 6% of their salary (capped at KES 2,400).
  • NHIF: Contributions range based on the salary, up to KES 1,700 per month.

    Social Security

    Social security in Kenya is primarily provided through the NSSF, which ensures a basic level of financial security for employees in their retirement or in case of incapacity, alongside other benefits.

  • Pension Fund

    Both employer and employee contributions to the NSSF serve as the pension fund, ensuring retirement benefits for employees.

    Healthcare Insurance

    The NHIF, funded by both employer and employee contributions, provides workers with access to medical facilities and helps cover healthcare costs.

    Working Hours Per Week

    The standard working week in Kenya is 45 hours, typically from Monday to Friday. Working hours per day should not exceed 8 hours in a commercial office setting.

    Overtime

    Overtime pay in Kenya is regulated under the Employment Act and must be compensated at one and one-half times the normal hourly rate for hours worked during weekdays and twice the rate for weekends and holidays.

    Grounds for legal termination in Kenya include gross misconduct, redundancy, and incapacity due to health reasons. Employers must adhere to the due process as outlined in the Employment Act.

    Severance

    Severance pay is typically calculated at 15 days of pay for each year of service, provided in cases of redundancy.

    Notice Period

    The notice period required in Kenya varies by the length of service:

  • Up to 5 years of service: 1 month notice.
  • 5 years and above: 2 months notice.
  • For employees, the standard notice period is 1 month.
  • Employment Contract

    Labor contracts in Kenya must specify the terms of employment, including job description, work hours, salary details, benefits, termination rights, and any applicable probation period.

    Probation Period

    The maximum legal probation period in Kenya is 6 months, but it can be extended with mutual consent.

    Annual Leave

    Employees are entitled to at least 21 working days of paid annual leave after completing 12 months of service.

    Sick Leave

    Employees can take up to 7 days of full pay sick leave and an additional 7 days at half pay per year.

    Maternity Leave

    Female employees are entitled to 90 calendar days of maternity leave with full pay.

    Paternity Leave

    Male employees are granted 14 days of paid paternity leave.

    Public Holidays

  • January 1: New Year’s Day
  • May 1: Labour Day
  • June 1: Madaraka Day
  • October 20: Mashujaa Day
  • December 12: Jamhuri Day
  • December 25: Christmas Day
  • December 26: Boxing Day
  • Resources

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