Payroll Cycle
Minumum Wage
Overtime Pay
Overtime Working Hours Compensation
>52 hours 1.5 times of normal hourly rate
Employee working on rest day or public holidays 2 times of normal hourly rate
Visa Immigration

Talent Wiki - Kenya

Your quick guide on talent and labor compliance norms in Kenya
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Capital
Nairobi
Currency
Kenyan Shilling (Ksh)
Languages
Swahili (Kiswahili), English
Payroll Frequency
Monthly
GDP per Capita
$1838
Employer Tax
5% +50 KES

Supplementary Guide for Employment and Expansion in Kenya

Talent Overview

Kenya has a market-based economy. Located on the Indian Ocean coastline, Kenya opens the door to the eastern Africa Market for businesses, making it a hub of economic, commercial, financial, and logistics activities in East Africa. The country has a development programme named "Vision 2030" from 2008 to 2030. Under this, the Kenyan government has been making continuous efforts to improve the country's economic status. It has brought many law reforms that help Kenya get 56th rank globally in the ease of doing business 2019 report by World Bank. Major Industries in Kenya include agriculture, manufacturing, tourism, financial services, mining, etc. 

Major economic hubs:

Nairobi, Mombasa

Skills in demand:

Accounting and Finance, Human Resource Management, Business Administration, Marketing, Material procurement and management, Law, Education, Medicine, and Architecture

Local Universities

Some top local universities in Kenya and their rankings are as follows:

University of Nairobi

RANKING

Kenya : 1

World : 1077

Kenyatta University

RANKING

Kenya : 2

World : 2260

Egerton University

RANKING

Kenya : 3

World : 2444

Jomo Kenyatta University of Agriculture and Technology

RANKING

Kenya : 4

World : 2459

Moi University

RANKING

Kenya : 5

World : 2503

Salary Data

Average Salary of Job (Annually)

No.  Job Title Average Salary (in KES) Average Salary (in USD)
1 Chief Executive Officer 4,290,000 36,792.32
2 Financial Manager 3,700,000 31,732.31
3 Sales Manager 3,020,000 25,900.42
4 Human Resources Manager 2,760,000 23,670.59
5 Accounting Manager 2,620,000 22,469.90
6 Business Analyst 2,240,000 19,210.91
7 Customer Service Manager 2,410,000 20,668.88

Talent Sourcing Tips

Top Local Job Boards

Advance-Africa, bestjobs, Kenyancareer, Fuzu, Brightermonday

Number of LinkedIn Users

2.90 Million

Top Recruitment Agencies

Corporatestaffing, manpowerservicesgroup, Flexi-personnel

Employing in Kenya

Employers hiring talents in Kenya should follow all the labor laws, payroll, benefits, and compliances of the country. Having good knowledge of employment laws along with benefits and compensations helps employers to attract the right candidate for the company and reduce employee turnover while managing all the compliances. 

This section gives employers brief information about the same.

Employee Contract

In Kenya, employment contracts are governed by the Law of Contract Act, 2002 (revised 2012). The contract should be presented in a language that the employee understands. It can be of fixed or unlimited period of time. In the case of a fixed employment contract, the contract ends itself with the end of the period irrespective of dismissal or resignation. 

Probation Period

Newly hired employees in Kenya can be under probationary status for 1 to 12 months.

Public and Provincial Holidays

Date Name Type
1st January New Year’s Day National Holiday
March or April Good Friday National Holiday
March or April Easter Monday National Holiday
1st May Labor Day National Holiday
1st June Madaraka Day National Holiday
As per moon appearance Eid-ul-Fitr National Holiday
10th October Moi Day National Holiday
20th October Kenyatta Day National Holiday
12th December Independence Day National Holiday
25th December Christmas Day National Holiday
26th December Boxing Day National Holiday

As per rule, if a public holiday falls on Sunday, then employers have to give that holiday on Monday. 

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave 21 days Yes
Sick Leave 14 days Yes
Maternity Leave 12 weeks Yes

Payroll

Payroll Cycle

In Kenya, employers usually follow a monthly payroll cycle and make payment at the end of the month.

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Minimum Wage

As per the Regulation of Wages order, every employee should be paid basic minimum wage, which is applicable as per their profile. As of 2022, the minimum wage in Kenya is KES 15,201.65 per month. 

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Overtime pay

Normal working hours shall not be more than 52 hours in week, distributed evenly over six days of the week. 

To know more about what employers are liable to pay overtime to their employees, click on the link below:

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Health Examination Clause

Bonus

13th month salary

There is no provision for paying 13th month pay in the country. It solely depends upon employers if they wish to pay any bonus to employees.

Employee Benefits

Employees are entitled to the following benefits:

  • ~Maternity leave
  • ~Paternity Leave
  • ~Parental Leave in case of adoption
  • ~Retirement benefits
  • ~Health Insurance under NHIF 
  • ~Social Security under NSSF
  • ~Housing Allowance/ Housing accommodation
  • ~Clean water supply for housing accommodation
  • ~Food if agreed during contract
  • ~Medical help for illness
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Taxes

Employer Payroll Tax

Employers must retain income tax and social security contributions from the salaries of employees. In Kenya, the PAYE system is used to calculate these deductions. Every month, employer has to submit the deducted money to the KRA (Kenya Revenue Authority)

Employer Contributions Employer Payroll Tax
National Social Security Fund (upto 200 KSH / month) 5%
National Housing Development Fund ( Implementation is pending) 1.5%
National Industrial Training Levy (NITA) 50 KES per employee
Total Employer Tax 6.5% +50 KES

Employee Payroll Tax

Employee Contributions Employee Payroll Tax
National Social Security Fund (Pension) 5%
National Housing Development Fund ( Implementation is pending) 1.5%
National Hospital Insurance Fund (NHIF) ( Applicable on employees earning above 100,000 KES / month. From 1st Jan, 2022 tax relief will be applicable at 15% of the amount contributed 1700 KES
Total Employee Tax 6.5% +1700 KES

Employee Income Tax

Annual Taxable Income (KES) Tax Rate (%)
0-288,000 10
Next 100,000 25
Over 388,000 30

VAT

Value Added Tax (VAT) is applicable in Kenya, and it ranges between 0% - 16% depending on the nature of the goods.

Offboarding & Termination

Termination Process

As per Employment Act, employer needs to follow fair termination procedure as per the law or as per the contract signed between employee and employer. Employer has to give notice in writing and give a valid reason for termination.

Notice Period

The Notice period for Kenyan employees will be up to 28 days.

Severance Pay

Yes, in case of redundancy, the employer has to pay a severance of not less than 15 days’ pay for each year completed of service. 

Visa and Immigration

For foreign nationals, to work legally in the country, there are some strict immigration rules. Under that, it is mandatory to obtain the following documents to work in Kenya.

  • ~Class D Permit
  • ~Special Pass
  • ~Alien Card (if stay is longer than 90 days)
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