.svg)
Capital City
Nairobi
Currency
Kenyan Shilling
(
KSh
)
Timezone
GMT +3
Payroll Frequency
monthly
Tax Year
1 July - 30 June
Employer Tax
8.40%
Languages
Swahili
English
Capital City
Nairobi
Currency
Kenyan Shilling
(
KSh
)
Timezone
GMT +3
Payroll Frequency
monthly
Tax Year
1 July - 30 June
Employer Tax
8.40%
Languages
Swahili
English
Kenya's GDP growth in recent years is attributed to ongoing public projects, robust economic policies, and substantial public and private investments, reflecting a diversified economy.
By hiring remotely in Kenya, you can tap into a diverse and skilled workforce. Kenya has a growing pool of talented professionals, particularly in fields like technology, customer service, and digital marketing
Additionally, Kenya's financial sector is highly developed and regionally diversified, leading in global financial inclusion. The well-capitalised banking sector consistently maintains profitability above recommended thresholds.
Kenya's time zone allows for overlap with both European and American business hours, making it easier to provide round-the-clock customer support or services.
Businesses can only operate smoothly in Kenya if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Kenya below, to avoid any compliance issues.
In Kenya, both written and verbal agreements are acknowledged, but written contracts are required for durations exceeding three months. Formalities for these written contracts must include:
We can help you get a new employee started in Kenya quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
Kenya's New Labour Law sets the standard weekly working hours at 45, with a maximum of 56 hours. Shift work is regulated, and regular workdays are Monday to Friday, 8 hours per day, with an additional 5 hours on Saturdays as specified by sector-specific orders under the Regulations of Wages and Conditions of Employment Act.
In Kenya, the overtime pay rate is 150% of the standard pay. The New Labour Law mandates additional compensation for employees working during night hours (between 10 pm and 6 am) if they do not receive time off in lieu. The required pay is a minimum of 1.2 times the regular hourly salary.
In Kenya, the probationary period usually spans 3-6 months, requiring a seven-day notice or payment in lieu if termination occurs. As per the 2022 New Labour Law, apprentices must earn at least 70% of a full-time employee's salary for the same job, ensuring parity with regular employees during probation.
.webp)
1 July - 30 June is the 12-month accounting period that businesses in Kenya use for financial and tax reporting purposes.
The payroll cycle in Kenya is usually monthly, with employees being paid on the last day of the month.
The minimum wage for employees in Kenya is typically 94 KES per hour, amounting to around 15,201 KES per month for a typical 45 hour work week.
There are no legal provisions for 13th-month payments in Kenya.
Employer payroll contributions are generally estimated at an additional 8.4% on top of the employee salary in Kenya.
In Kenya , the typical estimation for employee payroll contributions cost is around 6% + 1,700 KES%.
The calculation of individual income tax in Kenya follows a progressive rate system, and the government employs a "Pay As You Earn" model.
The National Social Security Fund Act 2013 in Kenya covers old age benefits and presents three payment choices: buying a life annuity, receiving a partial lump sum, or a blend of both. Contributions to the NSSF Pension, which amount to 12% of pensionable earnings, are evenly divided between the employee and employer, with a maximum cap set at 2,160 KES.
.webp)
The annual leave entitlement in Kenya is 21 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
Kenya recognises 13 public holidays:
After a year of service, employees receive a minimum of 21 days of paid annual leave. According to the New Labour Law, new employees qualify for annual vacation from the 7th month, with a mandatory 10 consecutive days within the first 15 days of leave. With employee consent, employers can divide the annual leave into different intervals.
Expectant employees are eligible for a 3-month maternity leave, receiving 100% of their regular pay. A minimum notice of 7 days, along with a medical certificate, is required when indicating the intended leave period. In cases of adoption, the provisions for maternity and paternity leave apply, with a 14-day notice to the employer.
Fathers are entitled to a two-week paternity leave with full payment equivalent to their average salary. The employer is responsible for providing this pay, and the employee cannot extend this leave.
After 2 consecutive months of service, employees have the right to 30 days of fully paid sick leave, followed by an additional 15 days at half salary within each 12-month service period. A valid professional medical certificate indicating the incapacity to work is a requirement for this sick leave.
There is no provision for shared parental leave in Kenya, where parents can divide a set amount of leave between them. Each parent has distinct leave entitlements.
Employees who seek to adopt a child are entitled to a month of pre-adoption leave at 100% of their salary. They are required to give a 14-day notice to their employer and submit the necessary adoption documentation.
In Kenya, termination must be justified, and at-will termination or termination outside the probation period is not permissible for employers. Acceptable grounds for terminations include:
In Kenya, the minimum notice period is 1 month for monthly salary payments, and it may be extended. Employees terminated during the probationary period should receive at least 7 days' notice. No statutory requirements exist for individuals receiving daily wages.
Severance pay is only applicable when an employee is terminated due to redundancy, and it is calculated at a rate of 15 days for each year worked. In cases of termination for other reasons, service pay is provided at the same rate as severance pay.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
Back to Top
.svg)
Copied to Clipboard
Where to next?
Your “everything you ever needed to know” guides to compliant global employment around the world.
.png)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg){kind=icon}
.png)
.webp)
