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How to hire and pay employees in Kenya
Slasify
Apr 22, 2025
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- Before Hiring
- At a Glance
- Personal Income Tax
- Statutory Contributions
- Payment of Wages
- Termination
- Probationary Period
- Work Time Rules
- Holiday and Leave Entitlements
- Get In Touch
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Before Hiring in Kenya
Discover the global hiring and employment landscape in Kenya—an economic leader in East Africa with a rapidly growing market and a young, dynamic workforce. Kenya's strategic position and progressive policies make it an appealing destination for companies seeking opportunities in the African continent.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Kenya market with Slasify's global premium HR platform.
At a Glance
| Capital | Nairobi |
| Currency | Kenyan Shilling (KES) |
| Payroll Cycle | Monthly |
| Minimum Wage | Varies |
| Annual Leave | 21 days |
| Personal Income Tax | 10%–35% |
Personal Income Tax
| Taxable Income (KES) | Progressive Tax Rate (%) |
|---|---|
| Up to 288,000 | 10 |
| 288,001–388,000 | 25 |
| 388,001–6,000,000 | 30 |
| 6,000,001–9,600,000 | 32.5 |
| Over 9,600,000 | 35 |
Local Tax
There are no local taxes on employment income in Kenya.
Statutory Contributions
The contributions to the National Social Security Fund shall be calculated based on the employee's salary of at least KES 7,000, and up to KES 36,000.
On the other hand, the amount an employee is supposed to contribute for the National Health Insurance Fund shall be determined as follows:
| Gross income (KES) | NHIF premium (KES) |
|---|---|
| Up to 5,999 | 150 |
| 6,000–7,999 | 300 |
| 8,000–11,999 | 400 |
| 12,000–14,999 | 500 |
| 15,000–19,999 | 600 |
| 20,000–24,999 | 750 |
| 25,000–29,999 | 850 |
| 30,000–34,999 | 900 |
| 35,000–39,999 | 950 |
| 40,000–44,999 | 1000 |
| 45,000–49,999 | 1100 |
| 50,000–59,999 | 1200 |
| 60,000–69,999 | 1300 |
| 70,000–79,999 | 1400 |
| 80,000–89,999 | 1500 |
| 90,000–99,999 | 1600 |
| 100,000 and above | 1700 |
Employer Contributions
| Contribution rate | |
|---|---|
| Affordable Housing Levy | 1.5% |
| National Industrial Training Levy | KES 50 |
| National Social Security Fund | 6% |
Employee Contributions
| Contribution rate | |
|---|---|
| Affordable Housing Levy | 1.5% |
| National Health Insurance Fund | KES 150–KES 1,700 |
| National Social Security Fund | 6% |
Payment of Wages
Employees shall generally be paid monthly, with casual employees and employees working for a period of less than a month being paid as follows:
| Employee category | Payment frequency |
|---|---|
| Casual employee | At the end of the day |
| Employee employed for a period of more than a day, but not exceeding a month | At the end of their employed period |
Minimum Wage
Minimum wages in Kenya varies across professions and geographic location, with the exact amount being regulated by the amended Regulation of Wages Order.
Statutory Bonus
There are no statutory bonus in Kenya unless otherwise required under a collective or an individual agreement.
Termination
Employers shall, before dismissing any employee on the grounds of misconduct, poor performance or physical incapacity, explain to the employee their reasons, and the employee shall be given the opportunity to have their side heard.
In any claim arising out of termination of a contract, the employer shall be required to prove the reason for the termination, and where the employer fails to do so, the termination shall be deemed to have been unfair.
| Reasons justifying summary dismissal | Reasons of dismissal that would deem it unfair |
|---|---|
| Employee absents themselves from the place appointed for the performance of their work without approval or any just cause | Employee's pregnancy or any reason connected with their pregnancy |
| During working hours, by becoming or being intoxicated, an employee renders themselves unwilling or incapable to perform their work properly | The going on leave of an employee or the proposal of an employee to take any leave to which he was entitled under the law or a contract |
| Employee willfully neglects to perform any work or if they carelessly and improperly perform any work under their contract | Employee's membership or proposed membership of a trade union |
| Employee uses abusive or insulting language, or behaves in a manner insulting, to their employer or to a person placed in authority over them by their employer | The participation or proposed participation of an employee in the activities of a trade union outside working hours or, with the consent of the employer, within working hours |
| Employee is arrested for a cognizable offence punishable by imprisonment and is not released on bail or on bond within 14 days | Employee's seeking of office as, or acting or having acted in the capacity of, an officer of a trade union or a workers' representative |
| Employee knowingly fails, or refuses, to obey a lawful and proper command which it was within the scope of their duty to obey, issued by their employer or a person placed in authority over them by the employer | Employee's refusal or proposed refusal to join or withdraw from a trade union |
| Employee's race, color, tribe, sex, religion, political opinion or affiliation, national extraction, nationality, social origin, marital status, HIV status or disability | |
| Employee commits or, on reasonable and sufficient grounds, is suspected of having committed a criminal offence against or to the substantial detriment of their employer or their employer's property | Employee's initiation or proposed initiation of a complaint or other legal proceedings against his employer, except where the complaint is shown to be irresponsible and without foundation |
| Employee's participation in a lawful strike |
Notice Period
The termination of an indefinite-term employment contract of an employee who is paid on a monthly basis requires 28 days of notice period or a payment in lieu thereof unless the employer can justify the summary dismissal of the employee.
Employers can waive the whole or any part of the notice period, provided that they pay to the employee remuneration equivalent to the period of notice not served unless the employer and the employee agree otherwise.
Severance Pay
In the event that the employee is dismissed on the grounds of redundancy, they shall be entitled to receive severance at the rate of not less than 15 days pay for each completed year of service.
Probationary Period
A probationary contract refers to a contract of employment, the duration of which is not more than 12 months, that is in writing and expressly states that it is for a probationary period.
Generally, a probationary period shall not be more than 6 months, but it may be extended for a further period of not more than 6 months with the agreement of the employee. A party to a contract for a probationary period may terminate the contract by at least giving a 7 days' notice or by the payment in lieu thereof.
Work Time Rules
Standard Working Hours
The normal working week in Kenya shall consist of not more than 52 hours of work, spread over 6 days of the week.
The normal working week of a person employed on night work shall consist of not more than 60 hours of work per week.
Break Period
There are no statutory provisions for break periods in Kenya under the Employment Act.
Overtime
Employees required to work beyond their normal working hours, i.e. overtime, shall be paid at least 150% of their normal hourly rate.
In any case, the employee's total working hours shall not exceed 116 hours in any consecutive 2-week period.
Weekly Rest Days
Employees shall be entitled to a whole rest day in every 7-day period, and those required to work on their rest days shall be paid double their normal hourly rate.
The employer and the employee may mutually agree to the deferment of the employee's rest day, and the rest day so deferred may be taken by the employee on a subsequent day or may, subject to a maximum accumulation of 14 such rest days at any one time, be accumulated and taken as leave with full pay.
Holiday and Leave Entitlements
Public Holidays
Employees are generally entitled to paid rest days during public holidays, and those required to work on these days shall be paid double their normal hourly rate. There are 13 days of public holidays in Kenya for 2024.
| Holiday | Date |
|---|---|
| New Years' Day | January 1 |
| Good Friday | March 29 |
| Easter Monday | April 1 |
| Eid al-Fitr | April 11 |
| Labor Day | May 1 |
| Madaraka Day | June 1 |
| Eid al-Adha* | June 17 |
| Moi Day | October 10 |
| Mashujaa Holiday | October 20 (observed October 21) |
| Diwali** | October 31 |
| Jamhuri Day | December 12 |
| Christmas Day | December 25 |
| Boxing Day | December 26 |
*Observable by individuals of the Islamic faith.
**Observable by individuals of the Hindu faith.
Annual Leave
Employees who have completed a consecutive year of service shall be entitled to at least 21 working days of paid annual leave.
Employers may, with the employee's consent, divide the minimum annual leave entitlement under into different parts to be taken at different intervals, provided that one of the part consists of at least 2 uninterrupted working weeks.
The uninterrupted part of the annual leave shall be granted and taken within the year, and the remainder of the annual leave shall be taken within 18 months after the leave-earning period.
Where employment is terminated after the completion of 2 or more consecutive months of service during any 12-month period, the employee shall be entitled to at least 1.75 days of paid annual leave in respect of each completed month of service in that period, to be taken consecutively.
Sick Leave
Employees with at least 2 consecutive months of service shall be entitled to the following paid sick leave per year:
| Number of sick leave days | Sick leave pay |
|---|---|
| 30 days | Full pay |
| 15 days | Half pay |
The employee is obligated to produce a certificate of incapacity to work signed by a duly qualified medical practitioner and notify their employers of their absence and reasons for it as soon as is reasonably practicable.
Maternity Leave
Female employees shall be entitled to 3 months of paid maternity leave. This may be extended with the employer's consent or, in the event where, immediately on the expiry of maternity leave, the employee proceeds on sick leave, annual leave, compassionate leave or any other leave.
The employee is obligated to notify their employers in writing of their intention to take maternity leave not less than 7 days in advance or a shorter period as may be reasonable in their circumstances.
Paternity Leave
Male employees shall be entitled to 2 weeks of paid paternity leave.
Other Leave
Employees desiring to take leave on compassionate grounds can do so by using up their paid annual leave entitlement. In addition to this, they shall be granted 5 days' unpaid compassionate leave per year.
Get In Touch
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