* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Kenyan Shilling (KSh)


EAT (GMT +3)

Employment Cost


Annual Leave

21 days

In-demand Specialties*
Agriculture, Construction And Real Estate, Technology

The Ultimate Guide to Hiring Employees in Kenya

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Kenya

Employing in Kenya requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Kenya with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Kenya quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

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.


Fundamental Aspects of Employment in Kenya

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:

  • Identification of both parties
  • Employee's address
  • Job description
  • Starting date of employment
  • Duration of contract
  • Workplace details and working hours
  • Conditions for remuneration and payment frequency
  • Entitlements to leave

Probationary Period in Kenya

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.

Working hours in Kenya

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.

Overtime in Kenya

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.

Navigating Key Aspects of Payroll in Kenya

Kenya has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 July - 30 June

Fiscal Year in Kenya

1 July - 30 June is the 12-month accounting period that businesses in Kenya use for financial and tax reporting purposes.

Payroll Cycle in Kenya

The payroll cycle in Kenya is usually monthly, with employees being paid on the last day of the month.
84 KES p/h

Minimum Wage in Kenya

The minimum wage for employees in Kenya is typically 84 KES per hour, amounting to ~13,572 KES per month for a typical 45 hour work week.

Minimum wages and salaries in Kenya

The minimum wage in Kenya differs based on the industry and geographical location.

Bonus Payments in Kenya

There are no legal provisions for 13th-month payments in Kenya.

Comprehensive Overview of Employment Taxes in Kenya

Understanding the tax obligations for both employers and employees is crucial when operating in Kenya's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Kenya.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 8.40% on top of the employee salary in Kenya.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Kenya, the typical estimation for employee payroll contributions cost is around 6% + 1,700 KES.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The calculation of individual income tax in Kenya follows a progressive rate system, and the government employs a "Pay As You Earn" model.

Tax Rate Income Bracket

Pension in Kenya

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.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Kenya tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Kenya

When it comes to terminating employment in Kenya, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

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:

  • Employee-initiated termination
  • Mutual agreement
  • Employer-initiated termination (due to misconduct, inability to perform, or illness)
  • Redundancy
  • Contract expiration

Notice Period

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

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.

Annual Leave Entitlements and Company Policies in Kenya

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.

Public Holidays in Kenya

Kenya recognises 13 public holidays:

Holiday Date

Paid Time Off in Kenya

Maternity Leave in Kenya

Paternity Leave in Kenya

Sick Leave in Kenya

Adoption Leave

Parental Leave In Kenya

Kenya's Benefits Built Into Playroll

Competitive benefits package in Kenya

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Kenya's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Kenya

Make your benefits package in Kenya a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Kenya

Playroll allows you to provide localized benefits for employees in Kenya within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Kenya create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Kenya

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Kenya.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!