Can I hire an employee in Kenya without setting up a company?

Yes. An Employer of Record employs your chosen hire on its own Kenyan entity, issues a contract compliant with the Employment Act 2007, and registers and remits every statutory deduction. Most hires are Kenyan citizens who need no work permit, so onboarding is usually a matter of days.

Why is termination the biggest risk when hiring in Kenya?

Kenyan law requires both a fair reason and a fair procedure. Under section 41 of the Employment Act an employer must hold a hearing before terminating, and failing to do so makes the dismissal unfair even where the misconduct is clear. The Employment and Labour Relations Court can award up to twelve months of gross salary in compensation, on top of terminal dues.

Employer of Record Kenya | EOR Kenya | Hire Employees in Kenya

Why an EOR

Employer of Record Kenya: the fast, compliant way into the market

Registering a Kenyan company is only the start. You then need a KRA PIN and payroll account, NSSF and SHA employer registration, NITA, a work injury policy, a registered office and a local bank account. An Employer of Record lets you put someone on the ground first and decide about an entity later, if ever.

Live in days, not months

We already hold the Kenyan entity and every employer registration. Most hires are Kenyan citizens who need no permit at all, so a signed contract can turn into a payrolled employee within days.

Termination done properly

Kenya requires a fair reason and a fair procedure. Skip the hearing and the dismissal is unfair no matter how clear the misconduct. We run the process correctly and carry the employer liability.

Deductions that actually reconcile

PAYE, NSSF, SHIF, the housing levy and NITA all changed recently and several change again each year. We calculate, remit and evidence each one on time.

What we handle

Everything between the offer letter and a working employee

You choose the person and direct their work. We take care of the legal employment relationship in Kenya from end to end.

Explore all services

Employment Act 2007 contracts with enforceable terms
Payroll with PAYE calculated and remitted to KRA
NSSF, SHIF, housing levy and NITA registered and paid
Work injury cover under WIBA
Private medical, group life and pension administration
Annual, sick, maternity and paternity leave tracking
Work permits for the minority of hires who need one
Section 41 compliant terminations and final dues

How it works

Four steps to a compliant Kenyan hire

Scope the hire

Tell us the role, the gross salary and the start date, and whether your candidate is a Kenyan citizen or a foreign national. We confirm total cost and timeline.

Day 1

Contract & offer

We issue an offer and a contract drafted to the Employment Act 2007, covering probation, notice, leave, confidentiality and intellectual property.

Days 1–2

Onboard & register

KRA PIN verification, NSSF and SHA registration, bank or mobile money details, benefits enrolment and payroll setup under our employer accounts.

Days 2–5

Payroll & manage

Salary runs monthly in shillings with every statutory deduction remitted by the ninth. We handle leave, changes, and any exit.

Ongoing

Kenyan employment law, in brief

What every Kenyan employment contract must respect

Statutory rates below reflect the position as at February 2026. Several are revised annually or by Finance Act, and we confirm the current figures before issuing any contract.

Topic	Standard	Notes
Governing law	Employment Act 2007	Disputes heard by the Employment and Labour Relations Court
Income tax (PAYE)	10% to 35% graduated	Withheld at source; personal relief of KES 2,400 per month
NSSF	6% employee, 6% employer	Upper earnings limit raised to KES 108,000 in February 2026
SHIF	2.75% of gross	Replaced NHIF in October 2024; minimum KES 300, no upper cap
Housing levy	1.5% employee, 1.5% employer	No cap; collected by KRA
Annual leave	21 working days	After twelve months, accruing at 1.75 days per month
Notice	28 days, monthly paid	7 days during probation; payment in lieu permitted
Termination	Fair reason and fair process	A hearing is required; up to 12 months' pay if unfair

Read the full breakdown in our Kenya hiring guide.

Employer of Record

Hire now, no entity

We are the legal employer. No company registration, no KRA payroll account of your own, no NSSF, SHA or NITA registrations, no registered office and no local bank account. Live in days, and straightforward to unwind if the plan changes.

Your own entity

Incorporate in Kenya

A Kenyan private limited company, a KRA PIN and payroll account, employer registrations with NSSF, SHA and NITA, a work injury policy, a beneficial ownership filing and a registered office. Weeks to months to stand up, and cheaper once headcount is sustained.

Common questions

Hiring in Kenya, answered

What does EOR Kenya mean?

EOR Kenya is shorthand for Employer of Record services in Kenya. A Kenyan company becomes the legal employer of your chosen hire, holds the contract, runs payroll through its own KRA account and remits every statutory deduction, while you direct the day to day work.

Does my hire need a work permit?

Almost certainly not. Kenyan citizens need no permit, and they are the overwhelming majority of hires made this way. A foreign national needs a Class D permit tied to a specific employer, which takes considerably longer and which we scope separately before committing to a start date.

Why is the gap between gross and net so large?

Unlike the Gulf markets, Kenya has real personal income tax. Between PAYE, NSSF, SHIF and the housing levy, an employee on a professional salary typically sees around thirty percent deducted. Employer side cost is much lighter, roughly eight to nine percent over gross before benefits. We set out both figures before you make an offer.

Can I just keep paying them as a contractor?

Often not safely. Kenyan courts look at the substance of the relationship rather than the label on the agreement, and a contractor who works set hours under your direction on core work usually looks like an employee. Getting it wrong exposes you to backdated PAYE, NSSF, SHIF and housing levy with penalties and interest, plus a possible claim at the labour court.

What does it cost?

A flat monthly fee per employee, plus gross salary and employer statutory contributions of roughly eight to nine percent, plus benefits. See our pricing page for how the model works.

Employer of Record Kenya: hire employees without opening a company.