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Cost to Hire an Employee in Kenya (2026)

For a KES 3,000,000 salary in Kenya, modelled employer costs add about KES 123,360 a year (4.1%) before any EOR fee. Here's what makes up that figure, how it changes with salary, and what else to budget for.

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By · First published

The short answer

  • Gross salary.
  • Employer costs of about 4.1% at a KES 3,000,000 salary: KES 123,360 a year, of which the largest is NSSF (employer).
  • An EOR fee, if you hire without your own entity. The providers in our Kenya guide publish starting prices of US$349–599 per employee per month.

What employers pay on top of salary in Kenya

Mandatory employer costs at a KES 3,000,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Employer costRate or amountAt KES 3,000,000
NSSF (employer)6% of gross, up to KES 1,296,000KES 77,760
Affordable Housing Levy (employer)1.5% of grossKES 45,000
NITA industrial training levyKES 600 / yearKES 600
Total employer costs4.1% of salaryKES 123,360

Employer costs at four salary levels

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

Annual salaryEmployer costsTotal before EOR fee
KES 1,200,000 (junior / support)KES 90,600 (7.6%)KES 1,290,600
KES 3,000,000 (mid-level professional)KES 123,360 (4.1%)KES 3,123,360
KES 6,000,000 (senior professional)KES 168,360 (2.8%)KES 6,168,360
KES 10,000,000 (lead / manager)KES 228,360 (2.3%)KES 10,228,360

Key facts for employers in Kenya

  • Employer NSSF: 6% of pay up to KES 108,000 a month (max KES 6,480)
  • Affordable Housing Levy: 1.5% of gross pay (employee pays another 1.5%)
  • NITA training levy: KES 50 per employee per month
  • Annual leave: 21 working days after 12 months
  • Maternity / paternity leave: 3 months / 2 weeks, full pay
  • Redundancy pay: At least 15 days' pay per completed year

What these figures leave out

  • 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.

EOR or your own company?

Without your own entity in Kenya, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Kenyan private limited company. See the comparison in our Kenya guide and EOR vs local entity.

Frequently asked questions

How much does it cost to employ someone in Kenya?
At a KES 3,000,000 salary, employer costs add about KES 123,360 a year (4.1%), for a total of about KES 3,123,360 before any EOR fee.
How much is an EOR in Kenya?
The providers in our Kenya guide publish starting prices of US$349–599 per employee per month, on top of salary and employer costs. See the EOR pricing tracker.
Can I hire in Kenya without a local entity?
Yes, through an Employer of Record, which becomes the legal employer and runs payroll and contributions. See EOR in Kenya.

Sources

  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
    Housing Levy Calculator

    Kenya Revenue Authority (KRA)

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

  3. 3
    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.

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