Kenya
KENYA

Employer of Record

EMPLOYER OF RECORD

Employ is a trusted provider of Employer of Record (EOR) solutions for businesses looking to expand in the Asia Pacific, Africa, Europe, and America, covering end-to-end employment services for the remote workforce. We specialize in Outsourced Payroll Services, Remote Staffing, and Visa Services. In addition, we bring a centralized approach to HR management, Payroll & Benefits, and Legal Compliance wherever your staff may be.

55.4 MILLION

total population in 2021

110 BILLION USD

expected GDP in 2023

At the heart of the Indian Ocean is one of East Africa’s booming economies. With a GDP is projected to trend around 107 USD Billion in 2022, Kenya is the largest economy in the East and Central African region. Thriving industries like agriculture, manufacturing, transportation, tourism, telecommunications, energy, mining, and oil exploration represent a bright future for this nation. As a result, Kenya is the chosen eastern gateway to continental Africa, and it has excellent business trade relationships worldwide.

PUBLIC HOLIDAYS: 13

There are a total of 13 public holidays in Kenya per year. If this holiday falls on a Sunday, an employee is allowed to take a day off from work the following Monday.

  • New Year’s Day – January 1
  • Easter Monday – varies
  • Good Friday – varies
  • Labor Day – May  1
  • Madaraka Day – June 1
  • Eid al-Fitr – varies
  • Eid al-Adha – varies
  • Huduma Day – October 10
  • Mashujaa Day (Formerly Kenyatta Day) –  October 20
  • Diwali – varies
  • Jamhuri Day –  December 12
  • Christmas Day – December 25
  • Boxing Day (Utamaduni Day in Kenya) –December 26

 

SOCIAL SECURITY, HEALTH INSURANCE, AND TAXATION

Employer Contribution: 6% (same for employees)

  • Pay As You Earn (PAYE)
  • Personal Relief on Income Tax
  • National Social Security Fund (NSSF)
  • National Hospital Insurance Fund (NHIF)
  • National Industrial Training Authority (NITA) Levy
  • Higher Education Loans Board (HELB)

Income Tax Rates:

Brackets are the following

  • KES 0 – 13,4160 10%
  • KES 13,4160 to 26,0568 15%
  • KES 22,60568 to 38,6976 20%
  • KES 38,6976 to 51,3372 25%
  • KES 51,3372 upwards 30%

MINIMUM WAGE

Kenya is divided into three Minimum Wage Areas:

  • Minimum Wage Area 1: Nairobi, Mombasa, and Kisumu (around 121.50 Kenyan shillings per hour)
  • Minimum Wage Area 2: Mavoko (aka Athi River), Ruiru and Limuru
  • Minimum Wage Area 3: all remaining territory in Kenya

Professional Grades

Professions are divided into 12 occupational groups.  Group 1 receives the lowest minimum wage while groups  11 and  12 have the highest wages.

WORK HOURS

40 to 52 hours per week (5-6 working days)

OVERTIME RATE

150% weekdays 200% Sundays and holidays

PROBATIONARY PERIOD

6 months

ANNUAL LEAVE CREDITS

21 days within 12 months of employment  (1.75 days accrue each month)

MATERNITY LEAVE

91 days

PATERNITY LEAVE

14 days

SICK LEAVE

14 days with 12 months of employment

BONUSES

Not required by law, but employers gave their employees one or more of the following:

  • Christmas bonus
  • 13th-month bonus
  • Annual performance bonus
  • Production bonus

*Info is not binding, may vary, and is provided only as an indication.

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