Hire in Kenya

Employer of record in Kenya

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Kenya, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Kenya―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Kenya and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Kenya

Kenya’s constitution guarantees fundamental individual rights and freedoms including the right to fair remuneration, reasonable working conditions, participation in a trade union or employers’ organization, participation in a strike or lockout and collective bargaining.

The Employment Act, the Labor Relations Act, the Labor Institutions Act and the Occupational Safety and Health Act are four of Kenya’s main labor laws.

Kenya has ratified all fundamental conventions of the International Labor Organization except those concerning the Freedom of Association and the Protection of the Right to Organize.

Employment contracts in Kenya

As you look to hire employees in Kenya, here are some common regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Regular work hours are eight hours per day Monday through Friday and five hours on Saturday, making a 45-hour workweek. It is legal to work up to 52 hours a week, or 60 hours for night work. Employees are entitled to one day of rest out of every seven.

Overtime is defined as time worked more than the normal number of hours per week.

Overtime plus straight time cannot exceed 116 hours in two consecutive weeks, 144 hours for employees engaged in night work.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• The minimum wage varies based on profession and location.
• Professions are divided into 12 occupational groups, with Occupational Group 1 receiving the lowest minimum wage and Occupational Groups 11 and 12 tied for the highest wage. There can be multiple grades within an occupational group, and the minimum wage varies by grade.
• A minimum wage increase of at least 6% has been announced on May 1.
• Kenya is divided into three Minimum Wage Areas, each with its own minimum wage:
• Overtime work is compensated for at one and a half times the normal wages for weekday work and twice the basic hourly rate on Sundays and public holidays. Additional overtime regulations apply to different sectors of the economy.
• Collective agreements typically regulate the legal salary range for unionized employees.

As your employer of record in Kenya, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Kenya’s labor law does address bonuses.

Probationary period

A probationary period generally should not exceed six months, although it may be extended for a second period of six months with the employee's consent.

Termination and severance

Employees with indefinite contracts who have worked for at least five years are entitled to at least one month’s notice of termination. Employees who have worked for more than five years are entitled to at least two months’ notice.

Under the Employment Act, employees who are paid by the month must provide the employer with one month’s notice before resigning, although the individual employment contract may provide for a shorter or longer notice period. Employees who fail to give notice must pay the employer wages equivalent to the notice period.

Terminating probationary employment requires seven days’ notice or payment in lieu of notice.

If an employee is summarily dismissed for lawful cause, the employer must pay any outstanding salary, allowance, or benefit. The employer must also, within seven days, submit to a labor officer in the district where the employee was working a written report specifying the reasons for the dismissal and the period of notice.

Employee benefits and paid leave in Kenya

When negotiating terms of an employment contract with a candidate in Kenya, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Pregnant employees are entitled to three months of paid maternity leave and must give written notice at least seven days in advance. If an employer requests a medical certificate, the employee must provide one.

An employee may choose to take other kinds of leave (sick, compassionate, annual or any other leave) immediately following maternity leave. Insured employees pay an amount from 30 shillings to 320 shillings per month to the National Hospital Insurance Fund (NHIF), for reimbursing the employer for maternity expenses. Annual leave keeps accruing during maternity leave.

Vacation

Under the Employment Act, employees are entitled to at least 21 days of paid annual leave after 12 months of employment. The employee must be allowed to take at least one two-week period of leave each year.

Insured employees pay an amount from 30 shillings to 320 shillings per month to the National Hospital Insurance Fund (NHIF), for reimbursing the employer for maternity expenses. Annual leave keeps accruing during maternity leave.

Holidays

Kenya observes 10 the following public holidays:

• New Year’s Day
• Good Friday
• Easter Monday
• Labor Day
• Madaraka Day
• Eid-ul-Fitr
• Mashujaa (Kenyatta)
• Independence Day
• Christmas Day
• Boxing Day

Most holidays that fall on a Sunday are observed the following day.

Sick leave

Employees are entitled to a minimum of seven days of sick leave with full pay followed by seven days with half-pay for every 12 months of employment. An employee may take this leave after two consecutive months of service and must supply the employer with a certificate signed by a qualified medical practitioner confirming the inability to work.

Insured employees pay an amount from 30 shillings to 320 shillings per month to the National Hospital Insurance Fund (NHIF), for reimbursing the employer for maternity expenses. Annual leave keeps accruing during maternity leave.

Health coverage

Insured workers are eligible for retirement benefits at age 60; early retirement at age 50 is possible. Employees contribute 6% of their monthly salary to the pension fund and employers 6% of the monthly payroll.

Under the National Social Security Fund Act, all employers with one or more employees must register with the pension fund. Pension fund membership is mandatory for all employed persons between 18 and 60.

Contributions are split between two tiers:

• Tier I based on the minimum wage
• Tier II on the nation’s average earnings.

Tier I is funded by contributions based on pensionable (taxable) earnings up to the lower earnings limit — the average statutory minimum monthly basic wage for the major urban centers, secondary urban centers and rural areas. The cabinet secretary periodically adjusts the lower earnings limit.

Foreign nationals working in Kenya for less than three years are exempt from participation in the pension system provided they are covered by an equivalent program in their home countries, as are those covered by a social security treaty (totalization agreement).

Additional benefits

In addition to healthcare benefits, employees in Kenya are entitled to pensions funded by government tax revenues, and workers' compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Kenya, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: May 09, 2024

Employee onboarding with an employer of record in Kenya

We write and validate all local employment contracts, streamlining the onboarding process for you and your Kenya employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Kenya, we will:

• Schedule a welcome call to discuss HR and employment information for Kenya, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Kenya employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Kenya. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider, we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.