EOR Service in Kenya

Shraddha Saxena

Hire, Onboard and Pay Employees in Kenya Quickly and Efficiently

Hiring in Kenya at a glance

CURRENCY
Kenyan Shilling (KES)
working hours
40 hours per week
public/bank holidays
15 public holidays
capital
Nairobi
language
Swahili and English
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan to Dec
minimum hourly salary
No minimum wage
CURRENCY
Kenyan Shilling (KES)
public/bank holidays
15 public holidays
capital
Nairobi
language
Swahili and English
date format
DD/MM/YYYY
tax year
Jan to Dec
payroll frequency
Monthly
GDP
$95.5 billion (2021)
working hours
40 hours per week

Employer of Record in Kenya

Employers of Record (EORs) in Kenya offer valuable support for businesses aiming to expand their operations in the country. With a dynamic economy, a diverse workforce, and a strategic geographical location, Kenya presents numerous growth opportunities for businesses. EORs in Kenya possess extensive knowledge of local labor laws, ensuring compliance with regulations and simplifying legal complexities for companies. Partnering with a Kenya-based EOR enables businesses to streamline HR operations, manage employment agreements, and establish a strong foothold in the Kenyan market.

Why use Kenya EOR?

Kenya EORs enable employers to onboard local talent without the need to register their local entity. In addition to this, EORs also take care of compliance with local labor laws and eliminate any risks associated with employment.


In Particular, Kenya's labor laws have a few distinct features. These laws can stump even experienced foreign employers. For example, notice periods vary by service length. Kenya also makes severance pay mandatory for employees who have served the employers for after at least one year. Moreover, minimum wages in the country vary with region.

Violating any of these laws can bring heavy fines for employers. Partnering with a Kenya EOR like Gloroots, can help you navigate these challenges effectively. By working with an EOR, you acquire highly experienced legal and compliance professionals to ensure you compliantly onboard employees.

EOR Costs in Kenya

The pricing of Kenya EOR/PEO services can vary based on factors like the number of employees, the extent of required services, and project complexity. Typically, pricing structures involve a monthly fee per employee or a percentage of the employee's salary. Additional charges may apply for supplementary services or customization as needed.

Key Metrics For Foreign Employer 

With its vibrant economy, diverse talent pool, strategic location, and abundant natural resources, Kenya offers an ideal environment for career development and business success. 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Kenya.

Factors Global Ranking Interpretation
Rule of law 99 Indicates effectiveness of law enforcement
Labour-employer cooperation 87 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 76 Indicates average QS rankings
Labour productivity per employee 98 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 4 Indicates findability of skilled talent
Workforce with tertiary education 119 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through Gloroots' Recrew platform, you can seamlessly connect with exceptional talent in Kenya and efficiently expand your team.

Why work in Kenya ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

Proper employee classification is crucial for businesses operating in Kenya. Misclassifying workers can lead to legal risks and financial penalties. Collaborating with a reputable PEO/EOR in Kenya is a wise decision to safeguard your business.

Engaging a PEO/EOR ensures compliance with Kenyan labor laws, accurate employee classification, and efficient payroll processing. These experts handle comprehensive benefits, ensuring your workforce receives the necessary legal protections and entitlements. By entrusting employment obligations to trusted professionals in Kenya, you can focus on your core business operations with peace of mind.

Contact Us

Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

Calculate Now

Employing in Kenya

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax

Income Range (per month) Income Range (per year) Tax Rate
Up to 24,000 KES Up to 288,000 KES 10.00%
Over 24,000 KES to 32,333 KES Over 288,000 KES to 388,000 KES 25.00%
Over 32,333 KES Over 388,000 KES 30.00%

SOCIAL SECURITY AND OTHER TAX 

Employer Payroll Contributions Rate Range Monthly Cap (KES)
National Social Security Fund (NSSF) 6.00% 1,080
National Housing Development Fund (NHDF)* 1.50*% -
National Industrial Training Levy (NITA) 50 KES -
Total Employment Cost 6.00%+ 50 KES -

Employee Payroll Contributions Rate Monthly Cap (KES)
National Social Security Fund (NSSF) 6.00 % 200
National Housing Development Fund* 1.50*% -
National Hospital Insurance Fund (NHIF) 150-1,700* -

Separation

Termination Process

Employers have the right to end a fixed-term contract based on business, personal, or worker misconduct reasons. Termination necessitates prior notice and a written explanation. In cases of misconduct, a warning must be given, allowing the employee an opportunity to provide an explanation for their actions.

Upon the employer's initiation of employment termination, final wages must be paid on the termination date. If the employee's tenure exceeds one month, the employer is also required to furnish a certificate of employment.

Notice Period

In Kenya, notice periods for termination are as follows:

  • Employees terminated during the probationary period should be provided with a minimum of seven days' notice.
  • For employees paid on a monthly or longer basis, they must be given at least 28 days' notice of termination.

Severance Pay

Severance pay is calculated at 15 days' worth of wages for each year of service and is applicable only when termination occurs due to redundancy. In cases of termination for reasons other than redundancy, service pay is provided at the same rate as severance pay.

Probation Periods

In Kenya, the probation period lasts from three to six months. If the employer decides to terminate the employee during this period, they must provide seven days' notice or payment in lieu.

As of 1st January 2022, the New Labour Law mandates that an apprentice's base salary should be no less than 70% of a full-time employee's base salary for the same type of work. For probationary workers, their base salary must be equivalent to the base salary of employees in the same position.

Start Hiring in Kenya today

When hiring globally, ensuring compliance can be a daunting task, particularly when dealing with various employment laws, payroll procedures, DE&I compliance, GDPR, and data protection regulations. Keeping up with the ever-changing compliance landscape and setting up infrastructure can be challenging.

At Gloroots, we offer a comprehensive solution to minimize these complexities. Our integrated platform provides a single window to manage all hiring and onboarding tasks. Our in-house experts are well-versed in cross-border employment and payroll compliance, ensuring that your employment contracts, payments, and benefits are fully compliant with Kenyan regulations.

We strive to provide you and your employees with a stress-free global employment experience. Contact our experts today to kickstart your global hiring campaign in Kenya.

Grow your team in Kenya

Tap into growth opportunities in Kenya with the expertise of Gloroots as your reliable Employer of Record (EOR). Our comprehensive services manage payroll, taxes, benefits, and compliance, allowing you to prioritize your workforce and drive company expansion.

Partnering with Gloroots' Kenya EOR enables you to streamline operations, mitigate risks, and ensure compliance with Kenyan employment regulations. We handle the complexities of cross-border employment, ensuring a seamless expansion experience in Kenya. With our support, you can focus on talent acquisition and team growth while entrusting compliance and payroll intricacies to us. Rely on Gloroots to navigate the Kenyan labor market and unlock your business's full potential.

Are you Ready to
Experience Seamless Hiring in Kenya ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Kenya .

Speak to our Expert