Kenya Employer of Record (EOR) & Payroll Solutions – Africa Deployments Kenya

Africa Deployments Kenya (ADS) offers comprehensive Employer of Record (EOR) services throughout Kenya, providing businesses with a reliable solution for local and expatriate employees. We manage full-time employment contracts or fixed-term contracts based on your unique needs, allowing you to focus on growing your business while we handle the local employment complexities.

What We Offer:

• Work Permits & Local Employment Contracts: ADS manages work permits and issues official local work contracts for your employees, ensuring compliance with Kenyan labor laws.
• HR Best Practices: We provide expert HR advisory services, ensuring your employees are set up in Kenya with the best local practices.
• Tax & PAYE Compliance: We ensure your business complies with local tax laws by handling all tax and PAYE remittances to Kenya Revenue Services (KRA) monthly.
• Payroll Processing & Benefits: We manage salary payments, issue payslips, and offer comprehensive benefits packages including medical, disability, life insurance, and workmen’s compensation.

Kenya: A Thriving Business Hub in Africa

Kenya, an East African nation, is a top global safari destination with its 50 national parks and reserves. Known for its warm climate, scenic coastline, and the iconic Mount Kenya, it is also home to a dynamic economy with a strong focus on agriculture and tourism. Key industries include tea, coffee, cut flowers (particularly roses and carnations), and bananas. With a growing population of over 53 million, Kenya offers a promising market for businesses expanding into East Africa.

Kenya Employment Contracts – Types of Employment & Local Compliance

As an Employer of Record in Kenya, ADS offers flexible employment contract options:

• Fixed-Term Contracts
• Indefinite-Term Contracts

Our contracts comply with local regulations, ensuring they are in Swahili or English and specify compensation, benefits, and termination requirements.

Taxation in Kenya – Income, Deductions, and Compliance

• Taxable Income: All earned income in Kenya is subject to taxes, including salary, commissions, and bonuses. Both resident and non-resident employees are taxed on income generated within Kenya and worldwide for residents.
• Exempt Income: Certain items, such as charitable contributions, childcare, and healthcare expenses, are not deductible.
• Tax Rates: PAYE taxes are progressive based on income, ensuring compliance with local tax laws.

Overtime, Working Hours, and Mandatory Contributions in Kenya

• Standard Working Hours: 52 hours per week (8 hours per day for 6 days).
• Overtime Pay: Overtime is calculated at 1.5x the hourly rate for weekdays and 2x for public holidays or rest days.

Mandatory contributions include:

• National Social Security Fund (NSSF): 6% contribution from both employer and employee.
• National Health Insurance Fund (NHIF): Fixed monthly contributions based on salary.

Employee Leave Policies in Kenya

Kenyan employees are entitled to:

• Annual Leave: At least 21 working days per year.
• Sick Leave: Full pay for 7 days and half pay for the next 7 days after two months of service.
• Maternity Leave: Women are entitled to 3 months of paid maternity leave.
• Paternity Leave: Men receive 2 weeks of paid leave.

Bonus, Gratuity, and Severance in Kenya

• 13th-Month Bonus: Not mandatory but is common as a performance-related bonus.
• Gratuity Payments: Not mandatory, but may be included in specific employment contracts.
• Severance Payments: Employees with more than 12 months of service are entitled to severance pay based on their tenure.

Fringe Benefits in Kenya

Fringe benefits such as company cars or housing may be offered but are subject to PAYE tax if their value exceeds Ksh 3,000 per month.

Corporate Taxes in Kenya

• Corporate Tax Rate: 30% (standard rate).
• VAT: 16% on most goods and services.

Public Holidays in Kenya

• January 1 – New Year’s Day
• January 2 -New Year’s Day
• April 07 – Good Friday
• April 10 – Easter Monday
• April 21 – Idd-ul-Fitr
• May 01 – Labour Day
• June 01 – Madaraka Day
• June 28 – Idd-ul-Azha
• October 10 – Utamaduni Day
• October 20 – Mashujaa Day
• December 12 – Jamhuri Day
• December 25 – Christmas Day
• December 26 – Boxing Day

Industries We Support in Kenya

ADS provides EOR services to a range of industries in Kenya:

• NGOs & Non-Profit
• Engineering & Construction
• Oil & Gas
• FMCG & Manufacturing
• Private Equity, Finance & Banking
• Mining

• Agriculture
• Contact Us
  For detailed assistance with Employer of Record (EOR) services in Kenya, including specific payroll and employment solutions tailored to your needs, contact our team at Africa Deployments.