# Hire in Kenya

Source: https://overseashire.com/hire/kenya · verified 2026-10-05 · confidence medium

Strong English, a growing tech ecosystem (Nairobi) and a time zone convenient for Europe and the Middle East.

## Employer cost
Employer on-costs 7.5–7.5% 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. |

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)

## Rules
- 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 and 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.
- 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.
- 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.

## Contractors
Independent contractors are common; the Employment Act definition is applied by substance and misclassification claims are possible. Moderate risk.

## EOR
A foreign company needs a Kenyan entity or EOR. EORs handle PAYE, NSSF, SHIF and housing levy. Timelines not verified.
Onboarding: EOR not verified; own entity not verified.

## 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.

Unverified: Current minimum wage after November 2024; Leave, probation, notice and redundancy rules from general knowledge of the Employment Act; Working-hour limits; EOR/entity timelines

Sources:
- https://taxsummaries.pwc.com/kenya/corporate/other-taxes
- https://faidihr.com/blog/kenyas-minimum-wages
- https://employsome.com/blog/kenya-minimum-wage/

Not legal or tax advice.