G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Kenya. Your candidate is hired via G-P’ Kenya PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution enables customers to run payroll in Kenya while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Kenya.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Kenya lies on the equator in Eastern Africa and borders the Indian Ocean. Over 50 million people live in the country, more than 60% of whom are under the age of 25.
When negotiating terms of an employment contract and offer letter with an employee in Kenya, it may be useful to keep the following in mind:
Employment Contracts in Kenya
Fixed and indefinite term employment contracts are permitted.
It is legally required to put a written employment contract in place in Kenya, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Kenya should always state the salary and any compensation amounts in Kenyan shillings rather than a foreign currency.
Working Hours in Kenya
The work week in Kenya is generally 45 hours.
Holidays in Kenya
Kenya celebrates 10 national holidays:
- New Year’s Day
- Good Friday
- Easter Monday
- Labour Day
- Madaraka Day
- Mashujaa Day
- Jamhuri (Independence) Day
- Christmas Day
- Boxing Day
- Idd–ul-Fitr
Vacation Days in Kenya
In general, employees are entitled to 1.75 days of paid annual leave per month worked, or 21 days over the course of 12 months.
Kenya Sick Leave
After two (2) consecutive months of service, employees will be entitled to a maximum of 30 days’ sick leave with full pay, and thereafter 15 days’ sick leave with half pay.
Maternity/Paternity Leave in Kenya
Female employees are generally entitled to 3 months of paid maternity leave. Employees must give 7 days’ written notice before going on leave and may be required to present a medical certificate.
Fathers are entitled to two weeks of paid paternity leave.
Health Insurance in Kenya
Kenya has a public/private healthcare system.
Termination/Severance in Kenya
Probationary terms of up to 6 months are generally permitted and may be renewed up to 12 months. Employees terminated during the probationary period should be given at least 7 days’ notice.
Employees who are paid on a monthly or longer basis must be given at least 28 days’ notice of termination.
Severance pay is only mandatory in cases of termination for redundancy. In general, employees are owed 15 days’ wages for each year of service.
Paying Taxes in Kenya
Employers and employees each contribute 5% of wages to social security. They are both required to pay approximately KES 200 each towards National Social Security Fund (NSSF).
Wages and certain benefits are subject to Pay As You Earn (PAYE) which is the income tax. The percentage deducted is based on earnings.
This information is provided as generally accepted information and is not intended as advisory services.
Why G-P
Establishing a branch office or subsidiary in Kenya to engage a small team is time-consuming, expensive and complex. Kenyan labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Kenya. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Kenya PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Kenya, please contact us.