One partner for the entire employment lifecycle in Kenya, from a compliant contract and correctly remitted payroll through to benefits and a clean, defensible exit. You manage the work; we are the legal employer.
Your hire signs an employment contract with our Kenyan company. We hold the KRA payroll account, remit PAYE, NSSF, SHIF, the housing levy and NITA, maintain work injury cover, and carry employment liability under the Employment Act 2007. You direct the work exactly as you would with your own staff.
Employment agreements drafted to the Employment Act 2007, covering probation, notice, leave, confidentiality and intellectual property assignment, issued and signed electronically.
Monthly payroll in Kenyan shillings with graduated PAYE calculated, personal and insurance relief applied, and remittance to KRA by the ninth of the following month.
NSSF at six percent each side, SHIF at 2.75 percent of gross, the housing levy at 1.5 percent each side, and NITA, all registered, deducted, remitted and evidenced.
Compulsory insurance under the Work Injury Benefits Act arranged and maintained for every employee, rated to the role.
Private medical cover, group life and personal accident, and pension contributions to a registered scheme, enrolled and administered for your employee.
Twenty one days of annual leave accruing monthly, tiered sick leave, ninety days maternity, fourteen days paternity and public holidays, all tracked correctly.
Class D employment permits for the minority of hires who are foreign nationals, scoped honestly before any start date is promised.
Section 41 hearings run properly, notice and terminal dues calculated, redundancy procedure followed where it applies, and the paperwork that makes it defensible.
Kenya is unlike the tax-free Gulf markets. Employer cost above gross is light, but employee side deductions are substantial, and both numbers matter when you set a salary.
| Item | Employee | Employer |
|---|---|---|
| PAYE income tax | 10% to 35% graduated | Withholding only |
| NSSF | 6% to the upper limit | 6% to the upper limit |
| SHIF | 2.75% of gross | None |
| Housing levy | 1.5% of gross | 1.5% of gross |
| NITA | None | KES 50 per employee per month |
| Work injury cover | None | Around 1% of payroll |
A great many foreign companies already pay someone in Kenya as a contractor. It is worth knowing where that sits.
Genuinely independent, works to a deliverable rather than a schedule, uses their own tools, carries their own risk, and can work for others. Handles their own tax. You may need to withhold tax on professional fees.
Works set hours under your direction on core business, integrated into your team, economically dependent on you. Courts look at substance, not the wording of the agreement, and will treat this as employment however it is labelled.
This is where Kenya differs sharply from the Gulf. Most people hired through an Employer of Record here are Kenyan citizens, and they need no permit or sponsorship of any kind.
| Candidate | What applies | Typical timeline |
|---|---|---|
| Kenyan citizen | No permit required | Onboard in days |
| East African Community national | Simplified treatment, no permit fee | Weeks |
| Other foreign national | Class D permit, tied to a named employer | Several weeks to a few months |
| Urgent foreign start | Special pass may bridge the gap | Case by case |
A Class D permit requires showing the skills are not readily available locally and usually naming a Kenyan understudy for skills transfer. Because the permit attaches to a specific employer, the arrangement needs review before a start date is agreed. We are not immigration advocates and will refer you to Kenyan immigration counsel where the case needs it.
Foreign clients reasonably want to know how funds actually reach a Kenyan employee and what evidence they get back. Here is the shape of it.
Kenya requires a fair reason and a fair hearing. Miss the procedure and the dismissal is unfair regardless of the reason, with compensation of up to twelve months of gross pay available to the court.
Treating an employee as a contractor triggers backdated PAYE, NSSF, SHIF and housing levy with penalties, plus a possible claim at the labour court.
SHIF replaced NHIF, the housing levy is new and NSSF limits rose again in February 2026. Payroll built on last year's figures under remits and creates arrears.
Nairobi is where most companies start, and rarely where they stop. Through our network we can employ and pay staff across the region under one relationship.
The natural next markets for a team based in Nairobi, each with its own social security, tax and permit regime.
Larger, more complex markets that often follow once an East African base is established.
Consolidated employment across the region, so you brief us once and we handle the country by country detail.
Share the role and the gross salary and we will map the exact cost, both sides, with a timeline.