🇰🇪 Hire in Kenya: cost, rules and best EOR options
Strong English, a growing tech ecosystem (Nairobi) and a time zone convenient for Europe and the Middle East.
- Employer on-costs: 7.5–7.5% of gross salary (on a $60,000 salary, about $64,500–$64,500 total)
- EOR onboarding: not verified; own entity: not verified
- Probation: Up to 6 months, extendable once by up to 6 months with employee agreement (Employment Act, general knowledge).
- Currency: Kenyan shilling (KES)
- Data confidence: medium, verified 2026-10-05
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What it costs to employ someone in Kenya
Employer on-costs run roughly 7.5–7.5% on top of gross salary. Derived from PwC: NSSF 6% of pensionable earnings (lower limit KES 9,000, upper limit KES 108,000, max KES 6,480 per month from February 2026) + Affordable Housing Levy 1.5% of gross + NITA KES 50 per employee per month (negligible). Effective percentage is lower for salaries above KES 108,000 because of the NSSF cap. SHIF (2.75%) is an employee deduction, not employer cost. Excludes leave, service pay and medical cover.
| Contribution | Rate | Notes |
|---|---|---|
| NSSF (Tier I + Tier II) | 6% of pensionable earnings, up to KES 108,000 | Tier I on first KES 9,000 (KES 540), Tier II on next KES 99,000 (KES 5,940); max KES 6,480 per month; employee matches. |
| Affordable Housing Levy | 1.5% of gross monthly pay | Employee pays a matching 1.5%. |
| NITA training levy | KES 50 per employee per month | Filed via iTax by the 9th. |
Employer withholds PAYE (progressive, top rate 35%), the employee NSSF share, 1.5% housing levy and 2.75% SHIF health contribution (PwC), remitting by the 9th of the following month.
Mandatory benefits
- 21 working days' annual leave (Employment Act)
- Sick leave (7 days full pay, 7 half pay after 2 months)
- Maternity leave 3 months; paternity 2 weeks
- Service pay or NSSF coverage on termination (general knowledge)
Employment rules at a glance
| Payroll | Monthly; statutory deductions due by the 9th of the next month (PwC) |
|---|---|
| Probation | Up to 6 months, extendable once by up to 6 months with employee agreement (Employment Act, general knowledge). |
| Notice & severance | Notice per contract; if none, 28 days for monthly-paid staff after probation. Redundancy: one month's notice to employee and labour officer and severance of 15 days' pay per completed year of service. |
| Working time | General maximum 52 hours per week by order; overtime paid at 1.5x on normal days and 2x on rest days (general knowledge). |
| Paid leave | 21 working days of annual leave after 12 months (Employment Act 2007, general knowledge), plus about 12 public holidays. |
| Minimum wage | General urban minimum KES 16,113.75 per month for the lowest category from 1 November 2024 (Regulation of Wages (General) Amendment Order 2024, per press reports); any 2025-2026 revision is not verified. Sector-specific orders apply. |
Termination
Termination needs valid and fair reasons and a fair procedure; employees may claim at the Employment and Labour Relations Court. Summary dismissal is limited to gross misconduct.
Employee or contractor in Kenya?
Independent contractors are common; the Employment Act definition is applied by substance and misclassification claims are possible. Moderate risk.
Compare contractor vs employee cost →
Hiring through an EOR in Kenya
A foreign company needs a Kenyan entity or EOR. EORs handle PAYE, NSSF, SHIF and housing levy. Timelines not verified.
Typical onboarding: EOR not verified; own entity not verified. EAT, UTC+3 all year with no DST; 7-8 hours ahead of US Eastern.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Kenya
Related
FAQ
What employer contributions does Kenya require?
NSSF at 6% of pensionable earnings (maximum KES 6,480 per month), a 1.5% housing levy and a small NITA fee.
Who pays SHIF?
Employees contribute 2.75% of gross pay; employers deduct and remit it.
How much leave is required?
21 working days of annual leave per year.
What is severance for redundancy?
15 days' pay per completed year of service plus notice.