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Kenya

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

Kenya
Everything you need to know about payroll, benefits & hiring top talent in Kenya

Currency

Kenyan Shilling (KES)

Salary payment frequency

Monthly

Capital

Nairobi

Time Zone

GMT +3:00

Official Languages

Swahili, English

Is English spoken?

Yes
Kenya Payroll

Quick Links

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Introduction

General Overview & Economic Facts
  • Kenya, officially known as the Republic of Kenya (Jamhuri ya Kenya), is a country located in Eastern Africa
  • It spans an area of 580,367 km2 (224,081 sq mi) and has a population of approximately 47.6 million
  • Kenya is a democratic republic with a presidential representative
  • It is a lower-middle income economy, with the third largest and most developed economy in eastern and central Africa
  • Kenya ranks 143rd on the HDI (2020)
Why Employ In Kenya?
  • The main exports from Kenya are cut flowers, refined petroleum, coffee and titanium ore
  • 20.45 % of the population is between the ages of 15 and 24 years, with 33.75% of the population being between the ages of 25 and 54. Kenya has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview of the Labour Law
  • The main sources of employment law in Kenya are the Employment Act, the Regulation of Wages and Conditions of Employment Act, the Trade Unions Act, the Trade Disputes Act, the Factories and Other Places of Work Act, and the Workmen’s Compensation Act
  • The labour regulations cover matters such as working hours, wages, trade unions, workmen’s compensation, termination and notice periods
  • Kenyan labour laws protect both employers and employees
Fun Country Facts
  • Primary education in Kenya is free
  • There is a Kenyan version of Monopoly, known as Kumiliki
  • Kenya is one of the biggest manufacturers of coffee, yet they mostly drink tea
Why Use Playroll Services For Kenya?
  • Employing in Kenya requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Kenya
  • With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
  • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
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Employer Contributions

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

National Social Security Fund (NSSF)

Calculated on gross monthly salary. Up to a maximum of KES 200.00 per month

5.00%

National Industrial Training Levy

KES 50.00

Accident Insurance

Varies by industry

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Employee Contributions

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

National Social Security Fund (NSSF)

Calculated on gross monthly salary. Up to a maximum of KES 200.00 per month

5.00%

National Hospital Insurance Fund

Income bracket per month

0.00 – 5,999.00
KES 150.00

6,000.00 – 7,999.00
KES 300.00

8,000.00 – 11,999.00
KES 400.00

12,000.00 – 14,999.00
KES 500.00

15,000.00 – 19,999.00
KES 600.00

20,000.00 – 24,999.00
KES 750.00

25,000.00 – 29,999.00
KES 850.00

30,000.00 – 34,999.00
KES 900.00

35,000.00 – 39,000.00
KES 950.00

40,000.00 – 44,999.00
KES 1,000.00

45,000.00 – 49,000.00
KES 1,100.00

50,000.00 – 59,999.00
KES 1,200.00

60,000.00 – 69,999.00
KES 1,300.00

70,000.00 – 79,999.00
KES 1,400.00

80,000.00 – 89,999.00
KES 1,500.00

90,000.00 – 99,999.00
KES 1,600.00

100,000.00 or more
KES 1,700.00

Income Tax
Income Tax is ‘Pay As You Earn’

Income bracket per annum

0.00 – 288,000.00
10.00%

288,001.00 – 388,000.00
25.00%

388,001.00 or more
30.00%

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Employment Terms

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General

Minimum Wage
  • Minimum wage varies by sector, industry, occupation, and the locality of employment
  • It ranges from KES 13,572.90 – 30,627.45 per month
Working Hours
  • Day-shift employees working 6 days a week- 52 hours per week
  • Night-shift employees working a 6 day week- 60 hours per week
  • There is no specific statutory duration of the meal interval or rest breaks
  • Typical working hours start at 09h00 and end at 18h00, Monday to Friday
Overtime
  • Day-shift employees working 6 days a week, over a period of 2 weeks- 12 overtime hours
  • Night-shift employees working a 6 day week, over a period of 2 weeks- 24 overtime hours
Notice Period
  • Employees who get paid monthly or longer- 28 days
  • Employees who get paid weekly or fortnightly- 15 days
  • Employees who are on a probationary period)- 7 days
Severance Pay
  • 15 days’ pay for every year of employment 
Probation Period
  • There is no statutory probation period 
  • Any elective probation periods may not exceed 12 months 
Bonus
  • There is no statutory bonus
  • It is common to offer Christmas, 13th month, performance or production bonuses
Public Holidays

Public holidays 2022

  • January 1st – New Year’s Day
  • April 15th – Good Friday
  • April 18th – Easter Monday
  • May 1st – Labour Day
  • May 2nd – Labour Day (observed)
  • May 3rd – Eid al-Fitr
  • June 1st – Madaraka Day
  • July 11th – Idd ul Azha
  • October 10th – Huduma Day
  • October 20th – Mashujaa Day
  • October 24th – Diwali
  • December 12th – Jamhuri Day
  • December 25th – Christmas Day
  • December 26th – Boxing Day
  • December 27th – Boxing Day (observed)
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Leave

Paid Leave / Vacation Days
  • Paid leave
  • Paid by employer
  • 21 days per year
Sick Leave
  • Paid leave
  • Paid by employer and Social Security
  • 14 days per year
  • First 7 days are paid at 100% of normal pay, next 7 days are paid at 50% of normal pay
Maternity Leave
  • Paid leave
  • Paid by employer
  • Minimum of 3 months
Paternity Leave
  • Paid leave
  • Paid by employer
  • Minimum of 2 weeks
Compassionate Leave
  • There is no statutory obligation to provide compassionate leave
  • The number of compassionate leave days must be determined by the parties
Start hiring in Kenya today!