--- title: "Hiring in Kenya 2026 | Employer of Record Guide" description: "Hire in Kenya through Teamed's EOR. 6% NSSF employer rate, 21 days statutory leave, 90 days full-pay maternity leave. The Kenya guides, one per layer." canonical: https://www.teamed.global/country-hiring-guides/kenya --- Kenya · Country overview Served by Teamed via a Kenya-licensed EOR entity # What do you need to know to hire in *Kenya*? Kenya pays 21 days statutory annual leave, 90 days fully paid maternity leave, and 15 days severance per completed year of service on redundancy. Payroll PAYE is due to KRA by the 9 days of each month. Each guide below takes one layer. Last reviewed 13 June 2026 · Kenya guide ## How does Teamed handle Kenyan hiring for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Kenya for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, contracts, and the full Kenyan employment law stack run on **one platform**. **Real HR and legal experts** manage every Kenyan hire, from the first offer letter to the final settlement. **An actual person**, not a chatbot or a pooled queue, handles your Kenyan team alongside EOR, contractor onboarding, and entity payroll on **one platform**. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. A Kenyan contractor who converts to employment keeps their record, and that same employee can **graduate** from EOR to your own Kenyan entity without re-onboarding. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first Kenyan hire, **until it isn't**. Three things you won't find on any other Kenya EOR guide - **Kenya's maternity leave is 90 days at full pay, employer-funded.** There is no state maternity pay fund. The employer pays the employee's full salary for the entire period. Most EOR guides outside East Africa list shorter durations or miss the full-pay obligation entirely. - **NSSF contributions changed again in February 2026.** Year 4 of the phased NSSF Act 2013 implementation raised the Upper Earnings Limit to KES 108,000 and fixed both the employer and employee rate at 6%. Many competitor guides still quote the flat KES 200 legacy rate. [The tax and payroll guide](/country-hiring-guides/kenya/tax-and-payroll) sets out the current bands. - **Kenya has three statutory deductions beyond income tax.** NSSF, SHIF (the replacement for NHIF), and the Affordable Housing Levy all apply from day one. Combined, they add roughly 11 to 12 percent of gross pay to the employer's cost before PAYE. The cost breakdown guide gives the full picture. Answer.cite this Hiring in Kenya adds roughly 10 to 12 percent of gross salary in employer contributions once NSSF at 6%, SHIF at 2.75%, and the Affordable Housing Levy at 1.5% are included. Payroll runs monthly. PAYE, NSSF, SHIF, and AHL returns are all due by the 9 days of the month following payroll. The minimum wage for general workers in Nairobi is KES 16,113.75/month. Teamed runs Kenyan payroll, contracts, and compliance through an EOR entity holding the required Kenyan registrations. This page is the map. Each guide below is the detail. At a glance · Kenya KES · English · Monthly payroll Currency KES (Kenyan shilling) NSSF (employer) 6% Year 4 rate, from Feb 2026, up to KES 108,000 UEL Annual leave 21 days after 12 months continuous service Public holidays 12 gazetted under Public Holidays Act Maternity leave 90 days full pay, employer-funded Paternity leave 14 days full pay Min notice (monthly staff) 28 days Employment Act 2007 s.35 Top income tax 35% above KES 800,000/month ![A wide illustration of Nairobi at golden hour: the city skyline with the CBD towers visible, a clear amber sky above, and the green Uhuru Park in the foreground.](/images/country-guides/kenya-hiring.webp) Kenya · per employee · per month · flat $ 599 Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk. Zero FX Fixed No setup fee No exit fee 48-hour onboard ## How much does it cost to hire an employee in Kenya in 2026? A Kenyan hire costs roughly 110 to 112 percent of gross salary once employer contributions are added. NSSF is 6%, SHIF is 2.75%, and the Affordable Housing Levy adds 1.5%. All sit on top of salary. Employer NSSF runs at 6% on pensionable earnings up to the Upper Earnings Limit of KES 108,000. SHIF (Social Health Insurance Fund) contributions are 2.75% of gross monthly salary with no upper ceiling. The Affordable Housing Levy adds 1.5% on gross salary. Teamed's Kenya fee sits inside the total cost envelope, not outside it. Teamed's Kenya price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice. The full breakdown, with worked examples at current statutory rates, is in the cost guide. [Read the full Kenya cost breakdown](/country-hiring-guides/kenya/cost-breakdown) ## Do you need a Kenyan entity to hire employees in Kenya? No. An Employer of Record runs Kenyan payroll and contracts from day one. Your own Kenyan entity becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary. Registering a Kenyan limited company requires incorporation at the Business Registration Service, NSSF and SHIF registration, a KRA PIN for PAYE, and registration with the National Industrial Training Authority. Setup takes six to ten weeks and comes with ongoing monthly statutory filings. An [Employer of Record](/lp/employer-of-record) is faster and cheaper at low headcount. Teamed runs Kenyan payroll, contracts, and compliance from day one. The crossover point depends on Kenyan salary levels and your local accounting costs. For most professional-services roles it lands around 5 to 8 employees. The EOR vs entity guide runs those numbers. Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Kenyan entity on **one platform** under Teamed's Graduation Model, with tenure preserved. [Read the full Kenya EOR vs entity guide](/country-hiring-guides/kenya/eor-vs-entity) ## What changed in Kenyan employment law recently? NSSF Year 4 raised the Upper Earnings Limit from KES 72,000 to KES 108,000 effective February 2026. The Affordable Housing Levy, introduced under the Affordable Housing Act 2024, added a 1.5% employer contribution on all gross salaries from March 2024. The NSSF Act 2013 phases in higher contributions over five years. Year 4 (from 1 February 2026) raised both the employer and employee rate to 6% and lifted the Upper Earnings Limit to KES 108,000 per month. NHIF was replaced by SHIF under the Social Health Authority from October 2024, at a rate of 2.75% of gross salary with no ceiling. President Ruto announced a 12 percent general wage increase on 1 May 2026; until a formal gazette notice is published, the last confirmed statutory minimum remains in force. The PAYE bands introduced by the Finance Act 2023 remain unchanged for 2026. The top rate of 35% applies above KES 800,000 per month. The compliance and hiring guides cover each current obligation in detail. [Read the full Kenya hiring guide](/country-hiring-guides/kenya/hiring-guide) ## What benefits must you provide Kenyan employees in 2026? The statutory floor is 21 days of paid annual leave, 90 days fully paid maternity leave, and 14 days fully paid paternity leave. Sick pay is 7 days at full pay followed by a further 7 days at half pay per 12-month period. Statutory annual leave is 21 days of consecutive working days after each completed 12 months of service under the Employment Act 2007. Kenya counts leave and public holidays separately. There are 12 gazetted public holidays per year. Leave accrues at 1.75 days per completed month of service and unused leave must be paid out on termination. Maternity leave is 90 days at full pay, employer-funded. There is no separate state maternity pay scheme. Paternity leave is 14 days at full pay. Sick pay runs at full salary for 7 days, then at half salary for a further 7 days, within any 12-month period. A medical certificate is required. The benefits guide covers each entitlement in full. Read the full Kenya benefits guide ## What are payroll taxes in Kenya in 2026? Employer NSSF is 6% on pensionable earnings up to KES 108,000 per month. Employees pay PAYE on a progressive scale starting at 10% and rising to 35% above KES 800,000 per month. Kenya has three employer-side statutory contributions beyond PAYE: NSSF at 6% (capped at KES 6,480 per month), SHIF at 2.75% of gross salary (no ceiling), and the Affordable Housing Levy at 1.5% of gross salary (no ceiling). All returns are due by the 9 days of the month following payroll. PAYE is progressive. The first 10% band applies on earnings up to KES 24,000 per month. The rate rises to 25% on the next band and reaches the top rate of 35% above KES 800,000 per month. A personal relief of KES 2,400 per month reduces the tax payable. Teamed PAYE handles all employee deductions and KRA remittances. The tax and payroll guide sets out every band and threshold. [Read the full Kenya tax and payroll guide](/country-hiring-guides/kenya/tax-and-payroll) ## How do you terminate an employee in Kenya? Monthly-paid employees are entitled to 28 days written notice under the Employment Act 2007. Redundancy triggers severance pay of 15 days of basic wages per completed year of service, with no statutory cap. Written notice of 28 days is the statutory minimum for monthly-paid employees. Payment in lieu is permitted. During probation, the required notice is only 7 days. Probation can last up to 6 months initially and may be extended by mutual agreement to a maximum of 12 months in total. Redundancy triggers statutory severance of 15 days of basic wages per completed year of service, payable on or before the employee's last day. There is no statutory cap on total severance. An employee dismissed unfairly who has at least 13 months of continuous service may bring a claim to the Employment and Labour Relations Court. The court can award compensation of up to 12 months of gross wages. The termination guide runs the full process. [Read the full Kenya termination and severance guide](/country-hiring-guides/kenya/termination-and-severance) ## What should you know before hiring in Kenya? Two things catch US buyers out. The first is that maternity leave is fully employer-funded with no state reimbursement. The second is that unfair dismissal protection requires only 13 months of continuous service, which is shorter than most US buyers expect. **Maternity leave costs sit entirely with the employer.** Kenya has no national maternity pay fund. The full 90 days of maternity leave is paid at full salary by the employer, with no recovery from the state. Budget for this from day one of any female hire, regardless of seniority. **Kenyan unfair dismissal claims arise faster than US employers expect.** Protection under Section 45 of the Employment Act applies once an employee has 13 months of continuous service. Claims must be lodged with a labour officer within 3 months of termination. Courts can award reinstatement or up to 12 months of gross wages. The hiring guide and the termination guide both cover safe process in detail. [Read the full Kenya hiring guide](/country-hiring-guides/kenya/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in Kenya? Plan on roughly 110 to 112 percent of gross salary once employer NSSF at 6%, SHIF at 2.75%, and the Affordable Housing Levy at 1.5% are added. Teamed's Kenya fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples. Can a US company hire in Kenya without an entity? Yes. An Employer of Record like Teamed runs Kenyan payroll, contracts, and compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Registering your own Kenyan entity takes six to ten weeks and requires KRA, NSSF, and SHIF registration plus ongoing monthly filings. What is the statutory notice period in Kenya? Monthly-paid employees must receive 28 days written notice under the Employment Act 2007. Payment in lieu of notice is permitted. During probation, the required notice is only 7 days. Contracts may set longer notice periods by agreement but cannot go below the statutory minimum. What is statutory maternity leave in Kenya? Kenya provides 90 days of maternity leave at full pay under the Employment Act 2007. The employer funds the full pay with no state reimbursement. Paternity leave is 14 days at full pay. Both are statutory rights from day one of employment with no qualifying period. What are Kenyan statutory redundancy payments? Statutory redundancy severance is 15 days of basic wages per completed year of service, payable on or before the employee's last working day. There is no statutory cap on total redundancy pay. Severance applies to redundancy terminations only, not to dismissals for cause or resignations. Accrued leave must also be paid out on termination. What is the minimum annual leave for a Kenyan employee? The minimum paid annual leave is 21 days of consecutive working days per completed 12 months of service under the Employment Act 2007, Section 28. Leave accrues at 1.75 days per completed month. Kenya counts annual leave and public holidays separately. There are 12 gazetted public holidays each year. Teamed Legal Operations Kenya runs a clear statutory framework under the Employment Act 2007, but the gap between the letter of the law and payroll practice catches new employers. Three separate monthly levies beyond PAYE, fully employer-funded maternity pay, and an unfair dismissal window that opens at 13 months: these are not hard rules once you know them. They are consistently costly when you do not. A note from Tom Price-Daniel Kenya has three statutory payroll levies beyond PAYE, 90 days of employer-funded maternity leave, and unfair dismissal protection that opens at 13 months. Most of the cost surprises come from not reading those rules before the first hire. Read the right Kenya guide before that hire, not after the first claim. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Kenya hiring guide, offer to payslip](/country-hiring-guides/kenya/hiring-guide)guide - [Kenya employer cost breakdown 2026](/country-hiring-guides/kenya/cost-breakdown)guide - [EOR vs entity in Kenya](/country-hiring-guides/kenya/eor-vs-entity)guide - [Kenya termination and severance](/country-hiring-guides/kenya/termination-and-severance)guide - [Kenya tax and payroll](/country-hiring-guides/kenya/tax-and-payroll)guide - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Teamed pricing, Zero FX Fixed](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/kenya)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Kenya Revenue Authority, the Ministry of Labour and Social Protection, and the National Social Security Fund for Kenya, or speak to a qualified professional, before relying on any specific framework.