Employer of Record in Kenya: 2026 Cost and Compliance Guide

Kenya is East Africa's main technology and business hub, with Nairobi home to regional offices of international companies, an English-speaking workforce and a time zone three hours ahead of GMT.

Statutory employer costs are low: NSSF pension contributions of 6% on pay up to KES 108,000 a month, the 1.5% Affordable Housing Levy and a KES 50 monthly training levy, plus compulsory work injury insurance. Health insurance (SHIF) is deducted from the employee, not paid by the employer.

The Employment Act applies to all employees, with 21 days' annual leave, three months' paid maternity leave and a set redundancy procedure. An Employer of Record (EOR) can employ your hire under a Kenyan contract and run payroll, so you don't need a company first. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record is a company with a Kenyan entity that employs staff on behalf of foreign businesses. It issues the employment contract, registers with KRA, NSSF and NITA, deducts PAYE, SHIF and the employee's NSSF and Housing Levy, pays the employer contributions, and handles leave and terminations under the Employment Act.

You direct the employee's work; the EOR carries the formal employer obligations and invoices you monthly.

Some providers employ through their own Kenyan company and others through a local partner. Ask which, and ask for the name and registration number of the entity that would sign the contract.

New to EORs? Our guide to what an Employer of Record is answers the 30 most common questions, from who the legal employer is to what happens if a provider fails.

Kenyan employment cost has three layers: gross salary, statutory employer contributions (NSSF, the Housing Levy and the NITA levy, plus work injury insurance) and the EOR fee.

NSSF stops at KES 108,000 of monthly pay, so it's a smaller share of higher salaries; the Housing Levy has no ceiling.

Annual cost at example salaries

What these figures include and exclude

• The employee's 6% NSSF, 1.5% Housing Levy, 2.75% SHIF health contribution and income tax (PAYE) are deducted from pay and are not employer costs.
• Work injury insurance is compulsory but priced by the insurer, so it isn't in the totals; ask your EOR what it charges.
• On redundancy, the employer pays at least a month's notice or wages, at least 15 days' pay per completed year of service and any leave due in cash.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in Kenya.

Minimum terms are set by the Employment Act, social security by the NSSF Act and work injury cover by the Work Injury Benefits Act. Key rules below.

Annual leave

At least 21 working days with full pay after every 12 consecutive months of service, and 1.75 days for each completed month when employment ends part-way through a year. One part of at least two uninterrupted weeks must be taken during the year; the rest within 18 months.[7]

Employment Act, s. 28.

Sick leave

After two consecutive months of service, at least seven days of sick leave with full pay and then seven days with half pay in each 12 months, with a medical certificate.[7]

Employment Act, s. 30.

Maternity, paternity and adoption leave

Three months' maternity leave with full pay, with the right to return to the same or a suitable job; two weeks' paternity leave with full pay; one month's pre-adoptive leave with full pay.[7]

Employment Act, ss. 29 and 29A. Maternity leave doesn't reduce annual leave.

Rest day

At least one rest day in every seven. Working hours are regulated by the Act and other written law, including wage orders for particular sectors.[7]

Employment Act, s. 27.

Probation

A probationary period can last up to six months, extendable by agreement for up to six more. Either side can end it with seven days' notice, or the employer can pay seven days' wages instead.[7]

Employment Act, s. 42.

Notice of termination

Where pay is monthly, either side can end the contract with 28 days' written notice, or a longer period if the contract sets one. Either side can pay the wages for the notice period instead.[7]

Employment Act, ss. 35 and 36.

Redundancy

The employer must notify the union (if the employee is a member) or the employee personally in writing, and the area labour officer, at least a month before; select with regard to seniority, skill, ability and reliability; pay any leave due in cash; give at least one month's notice or wages; and pay severance of at least 15 days' pay for each completed year of service.[7]

Employment Act, s. 40.

Unfair termination

A termination is unfair unless the employer proves a valid and fair reason, related to the employee's conduct, capacity or compatibility or to its operational requirements, and a fair procedure. A labour officer can recommend compensation of up to 12 months' gross pay, or reinstatement.[7]

Employment Act, ss. 43, 45 and 49.

Housing

The employer must provide reasonable housing or pay enough rent on top of wages, unless the contract consolidates a housing element into the basic wage or a collective agreement does.[7]

Employment Act, s. 31.

NSSF

Employer and employee each contribute 6% of pensionable earnings: Tier I up to the lower earnings limit and Tier II up to the upper limit. From February 2026 the limits are KES 9,000 and KES 108,000 a month.[1]

NSSF Act, s. 20 and Third Schedule (year four); NSSF says year-four rates remain in force while appeals continue.

Work injury insurance

Every employer must obtain and maintain insurance with an approved insurer for its liability to employees under the Work Injury Benefits Act.[8]

Work Injury Benefits Act, s. 7.

How Kenya compares

• EOR pricing in Kenya and other countries: Lowest published provider fee, employer costs and the monthly total.
• Employer social security: how Kenya compares: Every mandatory employer contribution, with rates and ceilings.
• Minimum wage: how Kenya compares: Official rates, annual equivalents and a US-dollar comparison.
• Employer pension contributions by country: Rates, earnings ceilings and scheduled increases.

These EOR providers publish a Kenya page. Prices are their own published starting rates in USD, from our pricing tracker; a Kenya quote can differ. Delivery models are as each provider's own Kenya page states them.

In Kenya, ask whether the provider employs through its own Kenyan company or a partner, how it handles the housing element of pay, and what it charges for work injury insurance.

Compare providers for Kenya

• Globalization Partners vs Atlas HXMIn Kenya: US$599 vs US$599 a month (published starting prices).
• RemotePass vs PlayrollIn Kenya: US$349 vs US$399 a month (published starting prices).
• Remote vs RemotePassIn Kenya: US$599 vs US$349 a month (published starting prices).
• Remote vs Globalization PartnersIn Kenya: US$599 vs US$599 a month (published starting prices).

For each provider's products, pricing model and fit signals, see the EOR provider directory.

The usual alternative is a private limited company registered with the Business Registration Service, or registering a foreign company's branch. You then register with KRA, NSSF and NITA, and buy work injury insurance yourself.

Ongoing costs include accounting, annual returns, tax filings and payroll. Get local quotes before comparing.

What a team costs through an EOR

Annual cost of a team of mid-level professionals on KES 3,000,000 each, with statutory employer costs from our cost model and an EOR fee of KES 77,588 per employee per month (a common published starting price of US$599). Providers may price differently for larger teams, so ask for a quote. US-dollar amounts use the US Treasury rate of 129.53 KES per US$1 (30 September 2026).

The salaries and employer costs are the same whoever employs the team. The difference is the EOR fees: KES 4,655,280 a year for 5 employees, KES 23,276,400 a year for 25 employees and KES 46,552,800 a year for 50 employees. A Kenyan private limited company becomes cheaper once running it, including payroll, costs less than that.

Work out your own break-even with the EOR vs entity calculator, or see the step-by-step method in EOR vs local entity: a break-even framework.

1. 1

   Define the role and packageDay 0

   Agree a monthly salary and state that it is consolidated, including any housing element, so no separate housing duty arises.

2. 2

   Check work authorisationDay 0–2

   Kenyan citizens can start straight away. Foreign nationals need a work permit; ask whether the provider supports it.

3. 3

   Ask who the employer is1–3 days

   Get the name and registration number of the Kenyan entity that would sign the contract, and whether it's the provider's own company or a partner.

4. 4

   Compare itemised quotes1–3 days

   Request Kenya quotes covering the fee, deposit, NSSF, Housing Levy, NITA, work injury insurance and offboarding. Use the estimator to sanity-check totals.

5. 5

   Employment contractDays

   The EOR issues a Kenyan contract meeting the Employment Act, with any probation period (up to six months), notice and leave terms.

6. 6

   Ongoing administrationMonthly

   Monthly payroll with PAYE, SHIF, Housing Levy and NSSF remittances, the monthly NITA levy and the annual work injury policy.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   NSSF Calculator: contribution rates effective February 2026

   Kenya Revenue Authority (KRA)

   6% employee and 6% employer: Tier I up to KES 9,000 (max KES 540 a side) and Tier II from KES 9,001 to 108,000 (max KES 5,940 a side).

2. 2
   National Social Security Fund Act (Cap. 258)

   Kenya Law (National Council for Law Reporting)

   S. 20 (6% employer and 6% employee on pensionable earnings) and the Third Schedule (year-four earnings limits).

3. 3
   Clarification on the Status of NSSF Contributions

   National Social Security Fund (NSSF)

   June 2026: the NSSF Act is in force and contributions remain at the year-four rates of the Third Schedule while appeals are pending.

4. 4
   Housing Levy Calculator

   Kenya Revenue Authority (KRA)

   1.5% of gross pay from the employee and 1.5% from the employer.

5. 5
   NHIF/SHIF Calculator

   Kenya Revenue Authority (KRA)

   SHIF: 2.75% of gross salary from KES 6,000 a month (KES 300 below), deducted from the employee.

6. 6
   Levy Inspectorate: Training Levy Fund

   National Industrial Training Authority (NITA)

   Industrial training levy of KES 50 per employee per month, paid by the employer and not deducted from payroll.

7. 7
   Employment Act (Cap. 226)

   Kenya Law (National Council for Law Reporting)

   Ss. 27 (rest day), 28 (annual leave), 29–29A (maternity, paternity, adoption), 30 (sick leave), 31 (housing), 35–36 (notice), 40 (redundancy), 42 (probation), 43, 45 and 49 (unfair termination).

8. 8
   Work Injury Benefits Act (Cap. 236)

   Kenya Law (National Council for Law Reporting)

   S. 7: every employer must obtain and maintain insurance with an approved insurer.

9. 9
   Employer of Record & Payroll Services: Kenya

   Remote

   States that Remote owns its own legal entity in Kenya (read 27 October 2026).

Kenya's statutory employer costs are low: 6% NSSF up to a ceiling, the 1.5% Housing Levy and a small training levy, plus work injury insurance. Through an EOR, total cost depends mostly on the salary and the provider's fee.

The Kenya-specific points are the consolidated salary (to avoid a separate housing duty) and the redundancy procedure. Choose a provider that tells you which entity employs your hire and how it would handle both.

If you're building a team, compare an EOR against your own company early with our EOR vs local entity guide. For other African markets, see Nigeria and South Africa.