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Country hiring guide

Hiring in Kenya ๐Ÿ‡ฐ๐Ÿ‡ช

Kenya is East Africa's leading talent hub, with a young, English-speaking workforce and recently reformed social levies. All-in employer cost runs around 1.06x the gross salary. Here is what to know before your first Kenyan hire.

Calculate a Kenya hire โ†’
Capital cityNairobi
CurrencyKenyan shilling (KES)
LanguagesSwahili, English
Population~55 million
Payroll frequencyMonthly
VAT standard rate16%
Employer burden*~6% of gross
TGTC flat EOR fee$399/mo ยท Tier A
Overview

Employing in Kenya

Employment runs under the Employment Act, with written contracts and enrolment in the national pension, health, and housing schemes, several of which changed in 2023-24.

Minimum wage

Minimum wages are set by sector and region through wage orders*, so the figure depends on the role and location.

Payroll cycle & extra pay

Monthly payroll. A 13th-month or bonus is customary in some sectors but not statutory.

Public holidays

Around 12 public-holiday days a year.

Onboarding & probation

Written terms are required. Probation is up to six months, extendable once by agreement.

Employer costs

What you pay on top of salary

Employer costs are modest, around 6%, across the reformed pension (NSSF), the health levy, and the affordable-housing levy.

Employer contribution*Rate
National Social Security Fund (NSSF, employer)tiered, rising*
Social Health Insurance (SHIF, employer/employee)~2.75%*
Affordable Housing Levy (employer)1.5%*
Industrial training levy (NITA)modest fixed amount*

Recent reforms

The NSSF contribution is rising in tiers under the 2013 Act, and the health and housing levies were introduced or changed in 2023-24, so rates are in transition.

Employee-side taxes

Employees pay PAYE income tax plus their share of the levies, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.

Types of leave

Statutory leave in Kenya

Annual leave

At least 21 working days of paid leave a year under the Employment Act.

Maternity leave

Three months of paid maternity leave, funded by the employer.

Paternity leave

Two weeks of paid paternity leave.

Sick leave

At least seven days at full pay and seven at half pay a year after two months of service.

Employment termination

Ending employment in Kenya

Process & notice

Notice is generally 28 days for monthly-paid staff, and dismissal requires a valid reason and a fair procedure.

Severance

On redundancy, severance of 15 days' pay per year of service applies, on top of notice.

Probation

Up to six months, extendable once by agreement, with shorter notice during it.

Contractor risk

A contractor working like an employee can be reclassified, with back statutory contributions and entitlements.

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Employ in Kenya without opening an entity

Compliant Kenyan employment contract, payroll, and statutory contributions, handled. One invoice, flat $399 per month.

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