Remote’s guide to employing in

Kenya
kenya flag

Make employment in Kenya easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Kenya, all in one easy-to-use platform.

  • Capital City

    Nairobi

  • Currency

    Kenyan shilling (KSh, KES)

  • Languages

    Swahili and English

  • Population size

    47,564,296

Services available in this country:
Employer of Record ProductContractor Management

Facts & Stats

Kenya Map Illustration
  • Capital City

    Nairobi

  • Currency

    Kenyan shilling (KSh, KES)

  • Languages

    Swahili and English

  • Population size

    47,564,296

  • 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)

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.

Grow your team in Kenya with Remote

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.

Remote 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 Kenya team. You can also pay contractors now in Kenya with Remote.

Risks of misclassification

Kenya, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Kenya may lead to fines and penalties for the offending company.

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 minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Kenya.

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

For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Kenya fast. The minimum onboarding time we need is only 2 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

12 Public holidays

Jan
Monday 1 January 20241New Year's Day
Mar
Friday 29 March 20242Good Friday
Apr
Monday 1 April 20243Easter Monday
Wednesday 10 April 20244Festival of Breaking the Fast
May
Wednesday 1 May 20245Labor Day
Jun
Saturday 1 June 20246Madaraka Day
Monday 17 June 20247Eid al-Adha
Oct
Thursday 10 October 20248Moi Day
Monday 21 October 20249Mashujaa Day
Dec
Thursday 12 December 202410Jamhuri Day
Wednesday 25 December 202411Christmas Day
Thursday 26 December 202412Boxing Day

Competitive benefits package in Kenya

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

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:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Kenya

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Kenya.

  • The monthly matching contributions by both employees and employers will rise from the current KES. 400 to 12% of a worker’s monthly pensionable income (6% from the employee and 6% from the employer – both contributing an equal amount), with a maximum contribution of KES. 2,160 for workers earning more than KES. 18,000 per month. Calculated at 6% of the base annual pay.

  • KES 200 for employer

  • KES 200 for employee

Types of leave

After spending 12 months working with an employer, employees are entitled to 21 days of paid leave every year.

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.

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.

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.

Fair Pricing in Kenya

Employer of Record

Hire and pay your global team

Starting at US$599/month

employee/month paid monthly

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app