Hire employees and contractors in Kenya
Outstaffer’s guide to employing in Kenya.
Facts & stats
Kenya is famous for its scenic landscapes and vast wildlife reserves teeming with lions, wildebeests, crocodiles, buffaloes, hippos, and flamingoes — like a savanna straight from the Lion King.
Beyond the incredible biodiversity, Kenya is sub-Saharan Africa’s third-largest economy. Nairobi is one of the world’s fastest-growing cities, now a thriving metropolis and a key center for trade in East Africa. Kenya enjoys strong performance in agriculture, transport, energy, tourism, and the services industry, and further growth is expected to power the Kenyan economy in the years ahead.
- Capital city
- Nairobi
- Currency
- Kenyan shilling (KSh, KES)
- Official Languages
- Swahili, English
- Population size
- 47,564,296 (est. 2019)
- Ease of doing business
- Easy
- Cost of living index
- 36.30 (2021)
- Payroll frequency
- Monthly
- VAT - standard rate
- 16%
- GDP - real growth rate
- 5.4 (2019)
Tech Talent in Kenya
Kenya is rapidly establishing itself as a prominent player in the tech talent landscape in Africa. The country boasts a growing community of skilled software developers, engineers, and IT professionals. With a strong focus on education and a burgeoning startup culture, Kenyan universities and tech institutions are producing graduates with a deep understanding of technology. Nairobi, the capital city, is at the forefront of this tech revolution, with a thriving ecosystem of startups and tech companies. Kenyan tech talent is known for its innovation and problem-solving skills, making it a valuable asset in the development of digital solutions and contributing to Kenya's position as a tech leader in Africa.
Grow your team in Kenya with Outstaffer
Looking to employ workers in Kenya? Companies hiring in Kenya must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Outstaffer can employ your team in Kenya on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Spain team. You can also pay contractors now in Kenya with Outstaffer.
Minimum wage
In Kenya, the government-mandated minimum wage is defined by several variables, such as the industry an employee is engaged in, geographical location, age, and skill level.
Typically, the Kenyan minimum wage ranges from 13,572.90 KES ($122.89) to as high as 30,627.45 KES ($277.30).
Payroll cycle
All employee payments are made bi-monthly by Outstaffer.com on your behalf and passed through to you.
Onboarding time
Start working with your new Kenyan employee right away with our streamlined onboarding process.
Our team reduces time-to-start while offering an exceptional and engaging employee onboarding experience. We handle the compliance and onboarding woes so you can get started fast.
Once the employee submits the required information onto our platform, the actual onboarding time depends on registration with local authorities, the Right to Work assessment (if applicable) and payroll cut-off dates.
On average, Outstaffer.com onboards new Kenyan talent in under 14 days.
Employing in Kenya
The Kenyan Constitution of 2010 and the revised Employment Act of 2012 spell out provisions for employee protections and workers’ rights for Kenya’s workforce of 23.7 million.
Employees in Kenya enjoy protections against discrimination based on age, religion, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off.
To employ workers in Kenya, contact Outstaffer to learn more about your options.
Risks of misclassification
Public holidays
Jan 2
Day observed for New Year’s Day
May 1
Labour Day
Dec 12
Mashujaa Day (Kenyatta Day)
Apr 7
Good Friday
Jun 1
Madaraka Day
Dec 25
Christmas Day
Apr 10
Easter Monday
Jun 28
Idd-ul-Azha / Eid al-Adha
Dec 26
Boxing Day (Utamaduni Day)
Apr 21
Idd-ul-Fitr
Oct 10
Utamaduni Day / Huduma Day (Moi Day)
Apr 22
Idd-ul-Fitr / Eid-al-Fitr
Oct 20
Mashujaa Day (Kenyatta Day)
Competitive benefits package in Kenya
Outstaffer supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.
Our benefits packages in Kenya are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Private health insurance
Supplemental dental insurance
Supplementary vision insurance
Supplemental maternity insurance
Supplemental screening & vaccine insurance
Additional paid holidays
Flexible work schedule
Employee engagement funds
Taxes in Kenya
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Kenya.
Social Security
- A social security deduction of 6% is still pending legal ratification.
- In the meantime, NSSF contributions are as per the provisions of the old Act:
- KES 200 for employer
- KES 200 for employee
Employer
1.5% - National Housing Development Fund (pending legal ratification)
Employee
- 1.5% - National Housing Development Fund (pending legal ratification)
- 150 – 1,700 KES - National Hospital Insurance Fund
Personal Income Tax Rates
- 150 KES - 0 – 5,999 KES
- 300 KES - 6,000- 7,999 KES
- 400 KES - 8,000- 11,999 KES
- 500 KES - 12,000- 14,999 KES
- 600 KES - 15,000- 19,999 KES
- 750 KES - 20,000- 24,999 KES
- 850 KES - 25,000- 29,999 KES
- 900 KES - 30,000- 34,999 KES
- 950 KES - 35,000- 39,999 KES
- 1,000 KES - 40,000- 44,999 KES
- 1,100 KES - 45,0000- 49,000 KES
- 1,200 KES - 50,000- 59,999 KES
- 1,300 KES - 60,000- 69,999 KES
- 1,400 KES - 70,000-79,999 KES
- 1,500 KES - 80,000- 89,999 KES
- 1,600 KES - 90,000- 99,999 KES
- 1,700 KES - 100,000 KES and above
Personal Income Tax Rates (Percentage Rates)
- 10% - Up to 288,000 KES
- 25% - 288,000 – 388,000 KES
- 30% - Above 388,000 KES
Types of leave
Paid time off
After spending 12 months working with an employer, employees are entitled to 21 days of paid leave every year.
Public holidays
There are 13 annual public holidays in Kenya and if a holiday falls on a Sunday, the following Monday is designated a work-free day in lieu of the holiday.
Sick leave
After completing two months of engagement with an employer, workers are entitled to 14 days of paid leave annually, compensated at a rate of 100% of the normal salary for the first seven days of employment, and 50% for the remaining seven days.
Partner/paternity leave
Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.
Maternity leave
Female employees are entitled to 91 days of fully paid (at a rate equivalent to 100% of the normal salary) maternity leave, provided the mother-to-be notifies at least a week prior with the appropriate medical certification.
Paternity/Parental leave
Fathers have the right to take two weeks of paid paternity leave off work to cater to an expecting or postpartum partner.
Other leave
- Compassionate leave: Kenyan labor law provides for compassionate leave employees can request in event of bereavement, misfortune, hospitalization of dependents, etc.
- Adoption: Adoptive parents are entitled to a mandatory leave period equivalent to the provision available to birth parents, as well one month’s of fully paid pre-adoptive leave before the decision is finalized, provided prior notice is delivered to the employer at least 14 days in advance.
Employment termination
Termination process
Employee contracts can only be terminated if a just cause is established, such as dishonesty, negligence, fraud, after a hearing where the employee in question is permitted to seek representation by trade union staff, etc.
Notice period
A written notice of termination must be provided to an employee at least 28 days prior to the decision, or payment can be made in lieu of notice.
Probation periods
Probation periods last up to six months, during which an employer can terminate an employee with seven days’ notice or payment in lieu of notice.
Severance pay
Severance payments are only mandated when an employee is laid due off to redundancy and are calculated at a rate equal to 15 days’ wages for every year of employment.
Get started with Outstaffer in three easy steps
01. Book a call or sign up
Book a call with one of our Solutions Managers or create your free account. It’s quick, easy, and you’ll be ready to get started in minutes.
02. Add your people
From new hires to your existing team, onboard them seamlessly with our simple-to-use self-serve platform
03. Dedicated onboarding
Our dedicated team is here to guide you every step of the way ensuring you’re confident, supported, and set up for success.