Hire in Kenya
Republic of Kenya, 55 million population, $2,100 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Kenya.
Capital
Nairobi
Currency
Kenyan Shilling (KES)
Languages
English, Swahili
Time zones
UTC+3 (EAT)
Hiring overview
- Typical time to hire
- 1-2 weeks for contractor, 2-4 weeks for full-time
- Entity requirement
- Kenyan limited company. Registration at Registrar of Companies. PIN and NHIF/NSSF registration required.
- EOR available
- Yes, from $399/employee/month through a Corpshore entity
- Contractor of record
- Yes, from $39/worker/month
Employment law
- Standard workweek
- 45 hours (52 for security workers)
- Maximum weekly hours
- 52 hours
- Minimum annual leave
- 21 working days after 12 months
- Public holidays
- 10 per year
- Maternity leave
- 3 months, fully paid
- Paternity leave
- 2 weeks, fully paid
- Notice period
- Contract-dependent; minimum 28 days for monthly contracts. No notice during probation.
- Severance
- 15 days pay per year of service (on redundancy). Not payable on resignation or dismissal for cause.
- Probation
- Up to 6 months (Employment Act 2007)
- Overtime rules
- 1.5x regular rate (weekday overtime), 2x (rest days and holidays). Maximum 48 overtime hours in 4 weeks.
Tax overview
- Income tax range
- 10% to 35%
- Corporate tax
- 30% (resident); 37.5% (non-resident)
- Social contributions
- NSSF: KES 2,160/month each. NHIF: based on income brackets (KES 150-1,700/month). Housing Levy: 1.5% each.
- VAT / GST
- 16% (standard); 0% on exports
- Tax year
- Calendar year (Jan-Dec)
- Treaty network
- ~15 tax treaties
Compliance landscape
- Worker classification
- Employment Act 2007 defines employee broadly. Independent contractor status is assessed on control, integration, and economic reality. Industrial Court handles disputes.
- Data protection
- Data Protection Act 2019 (effective November 2019). Office of the Data Protection Commissioner (ODPC) enforces. Data controllers and processors must register.
- Right to work
- Work permit (Class A-M, depending on role type) required for non-Kenyans. Employer must demonstrate position cannot be filled locally.
- Non-compete
- Generally enforceable if reasonable. Kenyan courts follow common law principles. Must be limited and compensated to be upheld.
- Collective bargaining
- Protected under the Labour Relations Act 2007. COTU (Central Organization of Trade Unions) is the main federation. Registration of collective agreements with the Ministry of Labour.
Payment rails
M-Pesa (launched 2007 by Safaricom) is one of the world's most successful mobile money platforms, used by 96% of Kenyan households. Bank transfers via RTGS and EFT. Wise supports KES.
Key considerations for hiring
- M-Pesa revolutionised financial inclusion and is the most common payment method for smaller transactions
- Nairobi (Silicon Savannah) is East Africa's tech hub, home to iHub and a thriving startup ecosystem
- Kenya's housing levy (1.5% employer + 1.5% employee) was introduced in 2023 despite initial legal challenges
- English proficiency is high in professional sectors, making Kenya a BPO and tech outsourcing destination
Business and cultural context: Kenya
Business culture
Friendly and relationship-oriented. English is the business language. Nairobi's tech culture is innovative and entrepreneurial. Hospitality (karibu: welcome) is deeply valued.
Key industries
Talent pool strengths
Historical context
Kenya's M-Pesa, launched in 2007, was a leapfrog innovation: mobile money adoption happened in the absence of traditional banking infrastructure. By enabling peer-to-peer transfers via basic phones, it brought financial services to millions. Today, M-Pesa processes more transactions annually than Western Union does globally. This mobile-first culture drives Kenya's tech innovation.
Ready to hire in Kenya?
Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Kenya for you.