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hire in Kenya

Kenya PEO &
Employer of Record

SALARY PAYMENT IN Kenyan Shilling

CONTRACT LANGUAGE English

PAYROLL TAX 6.5%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

Hire in Kenya

Horizons enables any business, anywhere in the world, to easily hire a workforce in Kenya, quickly, compliantly, and cost-effectively.

The Horizons Kenya PEO solution enables your company to hire a complete team in Kenya, without the need for a local entity or subsidiary.

When you engage a Kenya PEO, you save your business time and money, and guarantee compliance.

Facts & Stats

PEO Platform Hire in Kenya, and pay employees through our platform or app. PEO Cost Our Kenya PEO solution is the most affordable on the market. Time-to-hire Fast onboarding in Kenya, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Kenyan labor law. Local Benefits We administer all mandatory benefits and contributions in Kenya. 180+ Countries It doesn’t stop with Kenya — we are an international PEO
stay compliant with Kenya labor laws

Kenya is an East African country with a market-based economy and a young, educated English-speaking population. While the bulk of the Kenyan economy is focused on agriculture and agriculture-related businesses, Kenya also has a developed and growing tech startup ecosystem which is consistently producing tech-savvy workers.

The Kenyan labor market has grown in recent years, with data from 2021 suggesting 3.32% growth of the labor market even as the employment rate remains relatively stagnant. This job demand may represent an opportunity for international companies wanting to hire in Kenya.

For companies wanting to hire in East Africa, Kenya is a top choice as the hub of East African business. Opening a subsidiary in Kenya can be costly, however; outsourcing your international HR efforts to a trusted Kenya PEO is often the quickest and most affordable path to hiring in Kenya.

What is a Kenya PEO?

A Kenya Professional Employer Organization, or Kenya PEO, is a speicalist HR company that hires employees on behalf of client companies. It takes over hiring, payroll, and employment compliance so that client companies can focus on their core business.

A Kenya PEO could be a domestic PEO, only supporting based in Kenya and only hiring and processing payroll in that country. Or, they could be regional Africa PEO, supporting client companies throughout the region. Or, they could be a Global PEO, hiring employees all over the world, including in Kenya.

Horizons is a global PEO that supports companies to hire employees in Kenya, Africa, and throughout the world.

Fixed-term
Probationary period6 months
Termination notice period

1 week notice: 0 – 1 year of employment

2 weeks notice: 1 – 3 years’ employment

3 weeks notice: 3 – 5 years’ employment

4 weeks notice: 5+ years’ employment

+1 week if the employee is aged 45 with >2 years’ employment

Severance

Only in cases of termination due to business-related reasons

4 – 12 weeks’ salary, depending on years of service

Important noteEarly dismissal or resignation is not possible – only mutual agreement or extraordinary circumstances.
Indefinite
Probationary period6 months
Termination notice period

1 week notice: 0 – 1 year of employment

2 weeks notice: 1 – 3 years’ employment

3 weeks notice: 3 – 5 years’ employment

4 weeks notice: 5+ years’ employment

+1 week if the employee is aged 45 with >2 years’ employment

Severance

Only in cases of termination due to business-related reasons

4 – 12 weeks’ salary, depending on years of service

What are the benefits of a Kenya PEO?

A Kenya PEO provides client companies with access to talented employees, without having to worry about setting up payroll, benefits or HR services themselves.

This allows ambitious companies to focus on their core objectives, without worrying about administrative tasks such as payroll processing, HR management and employee tax compliance obligations.

Finally, since many Kenyan workers prefer working for foreign companies because of their higher salaries and better benefits packages than those offered by local companies, hiring through a Kenya PEO allows the company to benefit from a lower payroll burden than operating directly in Kenya would require.

The additional benefits of using a Kenya PEO are:

  • Cost savings – up to 85% compared to opening a local subsidiary
  • Speed of hiring – hire your employee in 24 hours, instead of the months it may require to open a subsidiary
  • Guaranteed labor law compliance – as the Kenya PEO would be the legal employer, we take care of all HR formalities while you retain direct supervision of the employee
  • Access to global benefits – take advantage of PEO group plans to offer unbeatable benefits for your team
  • Data security – advanced PEO platforms allow you to manage leave, expenses, and keep your data safe at all times.

How does a Kenya PEO help businesses hire employees?

PEOs in Kenya will generally follow the following steps:

  • Step 1: Engagement
    When you contact a Kenya PEO they will usually reach out to find out more about your situation, and provide you with a detailed, itemized, estimate of the costs you should expect to incur during the course of your hiring in Kenya.
  • Step 2: Employment facilitation
    The Kenya PEO will draft the labor contract for employees to sign, sometimes digitally.
    Step 3: Administrative onboarding
    All key declarations and registrations are made in Kenya, including tax registration. Depending on the employee’s nationality and benefits offered (e.g. insurances), this might include work permits and visas.
  • Step 4: Monthly payroll processing
    The Kenya PEO calculates all regulatory payroll items and ensure all taxes and contributions are paid monthly. You are invoiced for the costs of the employee plus the PEO fee each month.
  • Step 5: Ongoing HR & administrative support
    When there are questions from either you or your employee regarding HR matters, the Kenya PEO is there as the HR and employment law expert for Kenya.
  • Step 6: Further expansion
    If later you are ready to hire in another country, a global PEO will be able to support you. There are 180+ countries supported by Horizons, and a dedicated account manager can start the process in any country. Or, in many cases, you can raise the hire request directly on the Horizons platform (desktop) or Horizons App (mobile).
  • Step 7: Offboarding
    When the employment arrangement for your Kenya employee comes to an end, the Kenya PEO is there to guide and support all parties toward a smooth and compliant transition.

Hire compliantly in Kenya without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Leave management and national holidays in Kenya

A Kenya PEO can administer benefits for your entire Kenya team. This includes leave management, pensions, healthcare and various social contributions.

Employees in Kenya are entitled to 21 working days of paid annual leave. In addition, they are entitled to the following public holidays:

 

Kenya has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
Date Holiday name
1 Jan Sunday New Year’s Day
2 Jan Monday New Year’s Day observed
7 Apr Friday Good Friday
10 Apr Monday Easter Monday
23 Apr Sunday Eid al-Fitr
1 May Monday Labour Day/May Day
1 Jun Thursday Madaraka Day
29 Jun Thursday Eid al-Adha (Tentative Date)
10 Oct Tuesday Huduma Day
20 Oct Friday Mashujaa Day
12 Nov Sunday Diwali
12 Dec Tuesday Jamhuri Day
25 Dec Monday Christmas Day
26 Dec Tuesday Boxing Day

Note also that there are some regional or local holidays that are only celebrated in certain parts of Kenya.

Paternity and Maternity leave in Kenya

Mothers in Kenya are entitled to 3 months’ paid maternity leave. Fathers in Kenya are entitled to 2 weeks’ paid paternity leave.

Employer pension contributions in Kenya

Kenya has two bodies that help citizens save for retirement: the National Social Security Fund (NSSF), for employees, and MOBIKEZ (Online pension platform), for informal workers.

The NSSF is the body that regulates the occupational pension scheme in Kenya. Employers have an obligation to pay into the NSSF at a rate of 6.0% of employee salary per month (to a maximum 200 KSH per month).

Income tax withholding in Kenya

Kenya has a progressive income tax system with the following rates:

  • 10.00% of employee salary: up to 24,000 KES (per month), 288,000 KES (per year)
  • 25.00% of employee salary: next 8,333 KES (per month), 100,000 KES (per year)
  • 30.00% of employee salary: income over 32,333 KES (per month), 388,000 KES (per year)

Payroll tax in Kenya

Employer taxes cost 6.0% of an employee’s monthly salary + 50 KSH for the National Industrial Training Levy (NITA). The NITA is a state corporation created to promote the highest possible standards for industrial quality, efficiency, and safety. Trainings attended by employees which are accredited by NITA are eligible for a refund from NITA upon application by the employer. There is an additional contribution of 1.50% of an employee’s monthly contribution stuck in the courts. If ruled favourable, this contribution would support the National Housing Development Fund. Currently this contribution is not collected by employers in Kenya.

Kenya's healthcare system

Healthcare and health insurance in Kenya

Employers in Kenya are obligated by law to provide medical treatment to employees during time of service. As such, employers should provide adequate health insurance to all employees in Kenya. The National Hospital Insurance Fund (NHIF) is the largest health insurance provider in Kenya; packages from the NHIF include comprehensive medical coverage for all diseases.

Horizons also offers affordable comprehensive international medical insurance for any employee based anywhere in the world, for an additional cost.

Hire through a Kenya PEO

Kenya Professional Employer Organization (Kenya PEO) solutions take the stress out of hiring employees in Kenya. Through a PEO solution, any company, anywhere in the world can hire employees in Kenya, quickly and cost-effectively.

Hire in Kenya in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Kenya PEO offers a full HR and employment service, covering compliant hiring and payroll, but also often providing recruitment, visa support and HR advisory services.

A Kenya Employer of Record (Kenya EOR) solution covers the compliant hiring and payroll aspects of a PEO service.

Some global employment companies, like Horizons, are both Kenya PEOs and Kenya EORs.

A Kenya PEO is a good option for international businesses that seek to hire and pay employees in Kenya in full compliance with tax and labor laws.