Kenya
Employ in Kenya without an entity.
A contract under Kenya's Employment Act, pay in shillings, and social security, health insurance, the housing levy and income tax handled every month. One contact and one invoice.
The facts of employing in Kenya.
Paid in shillings, every month.
With a rest day in every seven.
21 working days of annual leave.
On full pay, after twelve months in a row.
Income tax from 10% to 35%.
Withheld each month, with a personal relief of KES 2,400 a month taken off the tax.
Four statutory deductions.
Social security, health insurance, the housing levy and income tax, each explained below.
What employing in Kenya involves, in plain words.
Each is handled for everyone you employ through Global Kinect EOR.
- Contracts
A written contract for any engagement of three months or more.
- Trial period: up to six months, and by agreement up to twelve in total.
- NSSFSocial security
The National Social Security Fund, from employer and employee alike.
- 6% from the employer and 6% from the employee.
- On pay up to KES 108,000 a month, from February 2026.
- SHIFHealth insurance
The Social Health Insurance Fund, paid by the employee and deducted by the employer.
- 2.75% of gross pay, at least KES 300 a month.
- Housing levy
The Affordable Housing Levy, on gross salary.
- 1.5% from the employer and 1.5% from the employee.
- PAYEIncome tax
Withheld by the employer each month.
- 10% on the first KES 24,000, rising through 25%, 30% and 32.5% to 35% above KES 800,000.
- A personal relief of KES 2,400 a month is taken off the tax.
- NITATraining levy
KES 50 a month for each employee, paid by the employer.
- Leave
21 working days of annual leave after twelve months in a row.
- Sick leave, after two months' service: 7 days on full pay, then 7 on half pay.
- Maternity leave: 3 months on full pay.
- Paternity leave: 2 weeks on full pay.
- Ending employment
28 days' written notice for monthly-paid staff, unless the contract gives more.
- Redundancy: at least 15 days' pay for each completed year of service.
- An unfair termination can cost up to 12 months' gross wages.
Hiring in Kenya, step by step.
You choose the person
And agree the role and the salary in shillings.
The contract is put in place
Under Kenya's Employment Act, with a work permit where one is needed.
They are paid monthly
In shillings, with NSSF, SHIF, the housing levy and income tax handled.
You get one invoice
With every other country you hire in.
Questions about employing in Kenya
What does an employer pay on top of salary in Kenya?
Employers in Kenya pay NSSF at 6% of pay, matching the employee's 6%, on pay up to KES 108,000 a month. They pay the Affordable Housing Levy at 1.5% of gross salary, matching the employee's 1.5%. They also pay the NITA training levy of KES 50 per employee a month. The employee alone pays SHIF health insurance, at 2.75% of gross pay.
Can we employ a foreign national?
Is there a minimum wage?
Employing in Kenya, worked through in full.
The guide goes further than this page.
- Hiring in Kenya: the work permit, the contract and a salary worked through, step by step
How you hire in Kenya without an entity of your own: the work permit step by step, moving someone already in Kenya, the contract, the employee test, what a salary costs and pays, leave, and what changed this year.
7 min read