KENYA
Payroll Outsourcing
Pay Your Talents in Kenya Compliantly.
Trusted by 400+ international clients:
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 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
Country Profile - Kenya
Population: 57,300,000
Gross Domestic Product (GDP): $118.1 billion
GDP Growth: 5.0%
Inflation, consumer prices: 5.7%
Foreign Direct Investment (% of GDP): ~0.7%
Unemployment Rate: 5.7%
Capital: Nairobi
Currency: Kenyan shilling (KES)
Languages: English and Swahili (official), with numerous indigenous languages including Kikuyu, Luhya, Luo, Kalenjin, Kamba, Kisii, and Meru
Social Security Contributions
Employer Contribution
- 6% of the employee's pensionable earnings must be contributed to the National Social Security Fund (NSSF), subject to statutory contribution limits.
- 2.75% of the employee's gross salary must be contributed to the Social Health Insurance Fund (SHIF), with employers responsible for registration and compliance requirements.
- Employers must contribute to the National Industrial Training Authority (NITA) levy and are responsible for work injury insurance coverage under the Work Injury Benefits Act (WIBA).
Employee Contribution
- 6% of the employee's pensionable earnings must be contributed to the National Social Security Fund (NSSF), subject to statutory contribution limits.
- 2.75% of the employee's gross salary is payable to the Social Health Insurance Fund (SHIF).
Consumption Taxes
- Value-added tax (VAT)
The standard VAT rate is 16%.
Working Hours and Employee Benefits
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.
Termination in Kenya
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.
Severance Pay in Kenya
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.
Public Holidays in Kenya
- New Year’s Day
- Funeral of Former President Daniel arap Moi
- Good Friday
- Easter Monday
- Labor Day
- Eid al-Fitr
- Madaraka Day
- Eid al-Adha
- Huduma Day
- Mashujaa Day
- Jamhuri Day
- Christmas Day
- Utamaduni Day
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.
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.
Value of Payrolls Processed Annually
Payslips Issued Annually
Payrolls Process Annually
Trusted by Inspiring Changemakers
Africa HR Solutions is for us everything what we have hoped for. Customer- and people oriented, fast and always willing to think along and find the best possible solution. We get professional services and an exceptional single point of contact.
Africa HR Solutions has been a great partner to our organisation, allowing us to quickly expand and operate in new markets while they flag and support management of compliance and risk issues. We now use Africa HR for support in some capacity in 8 of our geographic locations.
We really valued how quickly Africa HR set up an operational platform for our programme in Tanzania. The team were responsive over Teams and email and provided clear guidance on local employment requirements, which helped us structure delivery quickly and with confidence.
Africa HR is responsive, proactive, and accommodating, even with the time difference. In fact, it works in my favour - they have time to handle tasks before I start my day. Our payroll, especially in Senegal, is complex, but their attention to detail and willingness to go the extra mile definitely stand out.
Africa HR has taken the stress out of compliance - we no longer have to worry about changing regulations. Their team is professional, knowledgeable, and always available. Payroll runs smoothly, which saves us valuable time and our staff appreciates being paid on time! Kudos to the team!
Simplify and manage your team's payroll in Kenya
Manage payroll in Kenya with ease, ensuring PAYE, NHIF, and NSSF contributions are filed accurately and on time.
Frequently Asked Questions
What is payroll outsourcing?
Payroll outsourcing is when a specialist partner manages salary calculations, tax deductions, and statutory filings on your behalf. This ensures employees are paid correctly and on time while keeping your business compliant with local laws.
How does tax outsourcing work?
Tax outsourcing covers the preparation, filing, and payment of employee and employer-related taxes. It reduces the risk of errors, missed deadlines, or penalties by ensuring all contributions are handled according to local regulations.
Why should I outsource payroll and tax in Africa?
Africa’s employment laws and tax frameworks differ from country to country. Outsourcing ensures compliance, saves administrative time, and avoids costly mistakes while giving you access to local expertise in multiple jurisdictions.
Can you manage payroll for both local and expatriate employees?
Yes. We manage payroll for both local hires and expatriates, including handling multi-currency payments, cross-border compliance, and special tax considerations.
How do you ensure compliance with local laws?
Our experts stay updated with labour codes, tax rates, and social contribution requirements in each country. We file directly with authorities, ensuring your business remains compliant at all times.
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