🎊 We’ve raised the largest seed round in our industry $14.1M 🎊

Africa

Kenya

Request Info
Employer of Record (EOR) in Kenya

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Kenya Introduction

Kenya is a country in eastern Africa bordered by South Sudan, Ethiopia, Somalia, Uganda, Tanzania, and the Indian Ocean. The country is famous for its wildlife reserves and scenic landscapes, containing snow-capped mountaintops, vast forests, fertile agricultural regions, arid and semi-arid areas, and absolute deserts. Kenya's economy is the largest in central and eastern Africa, with Nairobi the capitol of Nairobi serving as a major commercial hub.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 91 days of paid maternity at 100% of their regular salary, and fathers are entitled to 2 weeks of paid paternity leave. Parents who are getting ready to adopt a child are also eligible for 1 month of Pre-adoptive Leave at their full pay.

Sick Leave

Employees who have worked 2 months at their companies have the right to 14 days of sick leave each year. The first 7 days are paid at 100% of the salary and days 8-14 are paid at 50% of the salary.

Paid Leave

There are 13 public holidays in Kenya, and employees are entitled to at least 21 days of paid time off after completing 1 year at their company. Employees can also take Compassionate Leave in cases of bereavement, hospitalization of dependents, etc.

Wage Requirements and Working Hours

Kenya doesn't have one standard minimum wage, but several scales depending on a person’s job, skill, and where they work. It’s usually around KES 15,200 per month. The standard workweek is 40 hours with a maximum of 12 hours of overtime per week (52 hours total). Overtime is paid at 150% of regular salary.

Termination Process

Process

If the employer is considering termination due to misconduct, performance, or incapacity, the employer first has to conduct a hearing where the employee has a right to a representative. After the hearing employers must provide a termination letter with justifications.

Notice Period

There is no notice required if the employee receives wages on a daily basis, but employers must give a 28-day notice if the employee is paid monthly. Employers can choose to give payment in lieu of notice.

Severance Pay

Unless the employee is terminated due to redundancy, there is no legal provision for severance payments. In cases of redundancy, the severance payment due is equal to 15 days of wages for each year of employment at the company.

Additional Information

N/A

OVERVIEW
Language(s):
Swahili, English
Currency:
Kenyan Shilling (KES)
Capital City:
Nairobi
Population:
56 Million
Cost of Living Rank:
99th
VAT (Valued Added Tax):
16%
Employer TaxES
7.5%+ KES 50
(estimated)

★  1.5% - National Housing Development Fund

★  6% - National Housing Development Fund

★  KES 50 - National Industrial Training Levy

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Kenya

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Kenya get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Kenya are paid on time in Kenyan Shilling (KES). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Kenya, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.