Kenya Employer of record Services

Kenya Outsourcing of Staff

For companies that want to hire employees in Kenya, prior to figuring out local labor laws and registering a branch office or subsidiary, Employ Africa offers an Employer of Record Service which puts your employee on our locally compliant payroll in Kenya, and assigns the employee to work full-time and exclusively for our client. Our services turn payroll into a simple monthly invoice. The Employer of Record Platform makes it easy to hire employees overseas with minimal time and expense.

When an employee is hired via a PEO, the employee is hired as an extension of a company that is already legally registered as an employer in-country. We process salaries, take care of personal income tax and set up the employee’s local benefits.

We take care of human resources, employment, and personal income tax reporting issues and allow you to concentrate on the project, rather than manage administrative issues.

Professionals can rest assured that their payroll and benefits will be managed exactly as they would be for any local company, and they can focus on the role for which they were hired.

When negotiating terms of an employment contract and offer letter with an employee in Kenya, it may be useful to keep the following in mind:

Public Holidays

Bonus

Some companies pay a 13th month bonus, called a 13th Cheque. Annual bonuses and performance-based bonuses are common in Kenya.

Working Hours

The labour law requires one 24-hour rest period every seven days and a one hour break per six hours of work.

Vacation

Employees are generally entitled to 21 days of paid annual leave after one year of employment.

Sick Leave

In general, employees are entitled to Sick leave under article 30 of the Employment Act.

Taxes

The tax year is 1st January to 31st December

The National Social Security Fund (NSSF) is a statutory savings scheme to provide for retirement. Both employers and employee’s contribute 5% (up to KSH 200) per month.

Income tax is taxable to Individuals and Limited Companies (including Trusts). The income of a partnership is charged on the partners who share the income.

The NHIF new rates will see those working in formal sector pay higher NHIF monthly contributions. This is as a result of the government’s move to roll out a universal health cover for all Kenyans.

The National Hospital Insurance Fund (NHIF) rates for high-income earners in the formal sector will rise by over 500 percent, that is, from the old NHIF rates of KSH 320 to KSH 1,700.

Additional Benefits

Common benefits include:

• pension plans
• dental benefits
• life insurance
• stock options
• car allowance
• mobile phone

Employment Contracts

Fixed term contracts are permitted.

It is legally required to put a written employment contract in place in Kenya, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Kenya should always state the salary and any compensation amounts in Kenyan Shilling rather than a foreign currency.

This information is provided as general accepted information and is not intended as advisory services.

Why Employ Africa

Employ Africa makes it easy to hire employees in Kenya with minimal time and expense. We put your employee on our locally compliant payroll and you get a simple monthly invoice. We can also process expense reports, handle personal income tax issues, and set up statutory local benefits with the streamlined ease of a company that has done it hundreds of times before, enabling you to skip the difficulty of creating a subsidiary and instead focus on building your business.

If you would like to discuss how we can provide employee leasing or PEO solution for hiring an employee in Kenya, please contact us [email protected]