Kenya – Employer of Record / PEO

Kenya – Employer of Record

Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Kenya. Your candidate is hired via Globalization Partners’ Kenya PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.

Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Kenya while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Kenya.

Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in 150 countries around the world, quickly and painlessly.

Kenya lies on the equator in Eastern Africa and borders the Indian Ocean. 45 million people live in the country, 60% of whom are under the age of 25.

When negotiating terms of an employment contract and offer letter with an employee in Kenya, it may be useful to keep the following in mind:

Public Holidays in Kenya

Kenya celebrates 10 national holidays:

  • New Year’s Day
  • Good Friday
  • Easter Monday
  • Labour Day
  • Madaraka Day
  • Mashujaa Day
  • Jamhuri (Independence) Day
  • Christmas Day
  • Boxing Day
  • Idd–ul-Fitr

Working Hours in Kenya

The work week in Kenya is generally 45 hours.

Vacation in Kenya

In general, employees are entitled to 1.75 days of paid annual leave per month worked, or 21 days over the course of 12 months.

Sick Leave in Kenya

Employees are generally entitled to 14 days of paid sick leave per year. Employees must provide a medical certificate.  The first 7 days are paid at 100%, the remaining days are paid at 50%.

Maternity/Paternity Leave in Kenya

Female employees are generally entitled to 3 months of paid maternity leave. Employees must give 7 days’ written notice before going on leave and may be required to present a medical certificate.

Fathers are entitled to two weeks of paid paternity leave.

Termination/Severance in Kenya

Probationary terms of up to 6 months are generally permitted and may be renewed up to 12 months. Employees terminated during the probationary period should be given at least 7 days’ notice.

Employees who are paid on a monthly or longer basis must be given at least 28 days’ notice of termination.

Severance pay is only mandatory in cases of termination for redundancy. In general, employees are owed 15 days’ wages for each year of service.

Taxes in Kenya

Employers and employees each contribute 5% of wages to social security. The rate has been increased to 6%, but its implementation is pending a court ruling.

Employees must also contribute 1% of wages to the National Hospital Insurance Fund.

Health Insurance in Kenya

Kenya has a public/private healthcare system.

Employment Contracts in Kenya

Fixed and indefinite term employment contracts are permitted.

It is legally required to put a written employment contract in place in Kenya, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Kenya should always state the salary and any compensation amounts in Kenyan shillings rather than a foreign currency.

This information is provided as general accepted information and is not intended as advisory services.

Why Globalization Partners

Establishing a branch office or subsidiary in Kenya to engage a small team is time consuming, expensive and complex. Kenyan labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Kenya. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Kenya PEO and Global Employer of Record Platform provides you piece of mind so that you can focus on running your business.

If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Kenya, please contact us at sales@globalization-partners.com.

 

 

 


Need more information about hiring in Kenya?

Contact Us