Kenya at a glance
Taxes in Kenya
Employer Contributions
| Contribution | Rate |
|---|---|
| National Social Security Fund (NSSF) — new rate | KES 1,080/month (or 6% of pensionable pay, whichever is higher under NSSF Act 2013) |
| Social Health Authority (SHA/formerly NHIF) | 2.75% of gross salary |
| Housing Levy | 1.5% of gross salary |
| NITA (National Industrial Training Authority) levy | KES 50/employee/month |
| Contribution | Rate |
|---|---|
| National Social Security Fund (NSSF) — new rate | KES 1,080/month (or 6% of pensionable pay, whichever is higher under NSSF Act 2013) |
| Social Health Authority (SHA/formerly NHIF) | 2.75% of gross salary |
| Housing Levy | 1.5% of gross salary |
| NITA (National Industrial Training Authority) levy | KES 50/employee/month |
| Contribution | Rate |
|---|---|
| NSSF | KES 1,080/month (employee portion) |
| Social Health Authority (SHA) | 2.75% of gross salary |
| Housing Levy | 1.5% of gross salary |
| Income Tax (PAYE) | 10% – 35% (progressive) |
| Monthly Gross Income (KES) | Tax Rate |
|---|---|
| 0 – 24,000 | 10% |
| 24,001 – 32,333 | 25% |
| 32,334 – 500,000 | 30% |
| 500,001 – 800,000 | 32.5% |
| Over 800,000 | 35% |
A personal relief of KES 2,400/month applies to all taxpayers.
Employer of Record in Kenya
What Is an Employer of Record?
An Employer of Record is the legal employer of your worker in Kenya. Remote& manages employment contracts under the Employment Act, NSSF and SHA registration, payroll, PAYE withholding, and the Housing Levy — giving you a fully compliant employment structure without a Kenyan legal entity.
How Remote& EOR Works
| Party | Role |
|---|---|
| Your Company | Recruits the worker, assigns tasks, manages performance |
| Remote& | Signs the employment contract, registers with KRA, NSSF, and SHA, processes payroll, withholds PAYE and levies |
| Employee | Fulfills their role for your company under a Kenya-compliant employment contract |
Ask Remi:
"Hire a Product Designer in Nairobi — KES 180,000/month, starting in 5 weeks" Remi handles contract drafting, KRA PIN registration, NSSF and SHA enrollment, payroll setup, and PAYE configuration — all in one conversation.
Benefits in Kenya
NSSF — National Social Security Fund Provides pension savings and some retirement benefits. Both employer and employee contribute.
SHA — Social Health Authority Replaced NHIF from October 2023. Provides access to public healthcare. Contributions are 2.75% of gross salary from both employer and employee.
Housing Levy Introduced under the Affordable Housing Act — employer and employee each contribute 1.5% of gross salary to the National Housing Development Fund.
- Private health insurance (SHA provides basic public coverage only)
- Group life and accident insurance
- Annual performance bonus
- Transportation allowance
- Mobile phone and data allowance
- Professional development support
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Annual Leave | 21 working days per year |
| Sick Leave | 7 days full pay + 7 days half pay per year |
| Maternity Leave | 3 months |
| Paternity Leave | 14 days |
| Adoption Leave | 3 months (female adoptive parent); 14 days (male adoptive parent) |
Employment conditions
Working Hours
Maximum working hours are 52 per week (excluding overtime). Standard practice for office workers is 45–48 hours per week. Overtime must be compensated at a minimum of 150% of the regular rate (200% on Sundays and public holidays).
Probation
Probation periods are permitted and must be specified in the employment contract. The maximum probation period is 6 months, extendable once by written agreement. Either party may terminate during probation with notice as agreed.
Payments
End of employment in Kenya
Employment in Kenya may end by resignation (with contractual notice), mutual agreement, expiry of fixed-term contract, or employer-initiated termination for valid cause. Unfair termination claims may be brought before the Employment and Labour Relations Court.
Minimum statutory notice periods (or payment in lieu) are: 28 days for employees paid monthly; 7 days for employees paid weekly. Employees dismissed for misconduct following a fair hearing are not entitled to terminal benefits beyond wages owed. Redundancy requires notification to the relevant trade union and the Ministry of Labour, with redundancy pay at 15 days' pay per year of service.
Frequently asked questions
International companies can hire in Kenya via: home-country payroll (non-compliant for ongoing employment — KRA registration and Employment Act obligations apply), contractor arrangements (appropriate for genuine project-based work), establishing a local Kenyan entity, or using Remote& as Employer of Record. The EOR model is the most efficient compliant route.