KENYA Payroll Outsourcing
Pay Your Talents in Kenya Compliantly
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Pay Your Team in Kenya. On Time. Everytime.
Ensure your team in Kenya is paid accurately and on time with our Payroll Outsourcing services. Gain expert support to keep your operations fully compliant with Kenya's Labour Code and tax regulations.
- Pay anyone in Kenya - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Kenya.
Flexible Payroll Solutions in Kenya.
Payroll solutions that adapt to your needs whether you are established or growing in Kenya.
Kenya Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Kenya and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes – manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Kenya
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Kenya’s legislation at all times.
Kenya Country Overview
Geographic Location: Kenya is an East African country bordering the Indian Ocean, Lake Victoria, Ethiopia, and Somalia.
Population: With a population of more than 54 million people, Kenya represents a considerable opportunity for investment. The national language is Swahili, but English is widely spoken as well.
Economy: Kenya boasts a wealth of natural resources such as limestone, salt, gemstones, oil, gas, gold, and hydropower. Its main economic drivers include Telecommunications and Financial Services. Before the pandemic, Kenya’s economy was considered the fastest-growing on the continent. Since then, the country has recovered steadily with a last-recorded annual GDP growth of 7.5%. With its already well-developed physical infrastructural facilities, Kenya is ready to welcome and support more advanced development in the future.
Payroll in Kenya - What You Should Know
- Population: 54,985,702
- Gross Domestic Product (GDP): $110.35 B
- GDP Growth (April 2021): 7.5%
- Inflation, consumer prices: 6.1%
- Foreign Direct Investment (% of GDP): 0.4%
- Unemployment Rate: 5.7%
- Capital: Nairobi
- Currency: Kenyan Shilling
- Languages: Swahili, English
Employer Contribution
- Employers are required to contribute KES 2,160 to the National Social Security Fund (NSSF)
Employee Contribution
- Employees are required to contribute KES 2,160 to the National Social Security Fund (NSSF)
- Employees are also required to contribute KES 1,700 to the National Hospital Insurance Fund (NHIF)
Pay as You Earn (PAYE)
Deducted from the employee salary
10% 25% 30%.32.5% and 35%
Taxed on a graduation scale
Income Tax Rates
The first KES 288,000: 10% Tax
The next KES 100,000: 25% Tax
The next KES 5,612,000: 30% Tax
The next KES 3,600,000: 32.5% Tax
On all income above KES 9,600,000: 35% Tax
Personal relief of KES 2,400 per month or KES 28,800 per annum
Value-added tax (VAT)
The standard VAT rate is 16% in Kenya – applied to the supply of goods and services both local and imported.
Paid Time-Off
Employees are generally entitled to 21 days of paid annual leave.
Sick Leave
In Kenya, employees are generally entitled to 14 days of paid sick leave per year. The first 7 days are paid at 100% and the remaining at 50%.
Maternity Leave
In Kenya, women are entitled to a maximum of 3 months of paid maternity.
Paternity Leave
Thanks to the Employment Act, men in Kenya are entitled to 2 weeks of paid paternity leave.
The length of notice periods in Kenya depends on the type of employment contract.
- For workers hired on a daily basis, their contract may be terminated at the end of their working day without any prior notice.
- For workers on their probation period, at least 7 days’ notice must be provided.
- The length of the notice period may also be set in the employment contract by mutual agreement between the employer and the employee – provided it is in accordance with Kenya’s Labor Code.
There is no statutory severance pay in Kenya except for cases of redundancy.
In that case, workers are entitled to 15 days’ basic wages for each completed year of service.
- New Year’s Day (1st January)
- Funeral of Former President Daniel arap Moi (11th February)
- Good Friday (10th April)
- Easter Monday (13th April)
- Labor Day (1st May)
- Eid al-Fitr
- Madaraka Day (1st June)
- Eid al-Adha
- Huduma Day (10th October)
- Mashujaa Day (20th October)
- Jamhuri Day (12th December)
- Christmas Day (25th December)
- Utamaduni Day (26th December)
Seeking a Reliable Payroll Partner in Kenya?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Kenya’s labour Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
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While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.