Africa Deployments provides Employer of Record (EOR) services in Kenya, enabling international companies to hire Kenyan employees under the Employment Act 2007 without registering a local entity with the Registrar of Companies. As the EOR partner in Kenya, Africa Deployments becomes the legal employer of your Kenya-based team, handling PAYE filing with the Kenya Revenue Authority (KRA), NSSF contributions under the tiered 2024 structure, Social Health Authority (SHA) contributions, NITA levy payments, and employment contracts in English and Swahili.
Quick facts: EOR Kenya at a glance
- PAYE: Progressive 10% to 35% on monthly income; filed with KRA via iTax
- NSSF: Tiered system from Feb 2024 – Tier I: KES 420 employer + KES 420 employee
- Social Health Authority (SHA): 2.75% of gross salary (employee); employer also contributes
- NITA Levy: 0.5% of gross pay (employer-only)
- Minimum wage: Approximately KES 15,201/month (general minimum)
- Annual leave: 21 working days per year
What Is an Employer of Record in Kenya?
An Employer of Record in Kenya is a locally registered entity that formally employs workers on behalf of a foreign company, managing all statutory obligations under Kenyan labour law. Africa Deployments EOR Kenya service covers Employment Act 2007-compliant contract drafting, KRA iTax PAYE registration and monthly filing, NSSF tiered contribution management, SHA registration and contribution remittance, NITA levy payment, and payslip generation.
Kenya is East Africa’s leading commercial hub and the most established market for international employer services in the region. Africa Deployments’ EOR Kenya service covers all 47 counties, making it suitable for businesses hiring in Nairobi, Mombasa, or any other Kenya location.
Kenya Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Employment Act 2007; Labour Relations Act 2007 |
| Minimum wage | Approximately KES 15,201/month (general minimum; sector rates vary) |
| PAYE | Progressive 10% to 35%; KRA iTax monthly filing |
| NSSF | Tiered from Feb 2024; Tier I: KES 420 each party |
| Social Health Authority | 2.75% of gross salary (employee); employer contribution alongside |
| Annual leave | 21 working days per year |
| Maternity leave | 3 months, employer-funded |
Payroll, Tax and KRA Compliance in Kenya
Kenya PAYE is filed monthly with the Kenya Revenue Authority (KRA) via the iTax platform. Rates are progressive from 10% on monthly income up to KES 24,000 to 35% on income above KES 800,000. The tiered NSSF structure introduced in February 2024 sets Tier I at KES 420 per party on earnings up to KES 8,000, with Tier II at 6% employer and 6% employee on earnings between KES 8,001 and KES 72,000. The Social Health Authority (SHA), which replaced NHIF from October 2024, levies 2.75% of gross salary from employees. NITA levy of 0.5% of gross pay is an employer-only monthly obligation. Kenya’s personal relief of KES 2,400 per month reduces the PAYE liability for all employees and must be correctly applied in monthly gross-to-net calculations.
Why Companies Choose Africa Deployments for EOR in Kenya
- Employment Act 2007-compliant contracts in English and Swahili
- Monthly KRA iTax PAYE filing and annual P9A reconciliation
- NSSF tiered contribution management under the 2024 structure
- SHA and NITA levy remittance management
- Kenya EOR as part of Africa Deployments’ East Africa multi-country hiring platform
Frequently Asked Questions
What is the PAYE rate in Kenya?
Kenya PAYE is progressive from 10% on monthly income up to KES 24,000 to 35% on income above KES 800,000. All employees receive a personal relief of KES 2,400 per month that reduces their net PAYE liability.
How does Kenya’s tiered NSSF work from 2024?
Tier I covers earnings up to KES 8,000, with KES 420 employer and KES 420 employee contributions. Tier II covers earnings between KES 8,001 and KES 72,000 at 6% employer and 6% employee. Earnings above KES 72,000 are not subject to additional NSSF contributions.
What replaced NHIF in Kenya?
The Social Health Authority (SHA) replaced the National Hospital Insurance Fund (NHIF) from October 2024. SHA levies 2.75% of gross salary from employees, with employer contributions alongside.
What is Kenya’s minimum wage?
Kenya’s minimum wage varies by sector and region. The general minimum is approximately KES 15,201 per month, but sector-specific Wages Orders may set higher floors in agriculture, domestic work, construction, and other regulated industries.
About Africa Deployments
Registered Company Name: Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: africa-deployments.com
Kenya’s progressive PAYE system, tiered NSSF structure, SHA transition, and NITA levy create a layered monthly compliance environment that requires precise administration. Africa Deployments’ EOR Kenya service provides the registered employer infrastructure, KRA iTax filing capability, and statutory contribution management that international companies need to hire in Kenya without local entity establishment.
Reviewed by: Africa Deployments Compliance Team
