Kenya has both a prime location in Eastern Africa bordering the Indian Ocean and a large population of young people looking for work. The combination makes it a great country for an expansion, especially if you want to form ties to other companies in Africa. While you get ready for this exciting time in the life of your company, G-P can help make it as successful as possible.
We offer Kenya payroll outsourcing services to make it easier for companies to expand to new countries. As the Employer of Record, we’ll manage the risk so that you can manage your company. We’ll add your employees to our compliant Kenya payroll and make sure they get paid the right amount at the right time.
Taxation Rules in Kenya
Employers and employees currently each contribute 1% of wages to National Social Security Fund (NSSF). Your employees also need to contribute a percentage of wages to the National Hospital Insurance Fund, dependent on their income. Keep in mind that Kenya uses a Pay As You Earn (PAYE) system where employers deduct taxes from an employee’s salary or wage. You’ll need to make the right calculations to stay compliant.
Kenya Payroll Options for Companies
Kenya offers several payroll options, so you can choose the one that fits best with your business:
- Remote: If you already have a payroll that your parent company is operating, you can add employees from other countries to the same payroll. However, every employee from a different country will also have various tax rules and regulations.
- Internal: Other large subsidiaries with a long-term commitment to Kenya may create their own internal payroll to pay employees. If you do the same, you’ll need to hire a large HR staff and make sure you have a compliance expert on the team.
- Local company: A local Kenya payroll processing company is one way businesses choose to outsource. While this company can handle your payroll, you’ll still have to worry about compliance.
- Global PEO: At G-P, we can use our PEOs around the world to make it easier for you to expand. We’ll outsource your payroll and all matters of compliance as well.
How to Set Up a Payroll in Kenya
The biggest requirement for setting up your Kenya payroll is the incorporation process. Companies not using our suite of global expansion services will need to register a subsidiary in the country before hiring employees and paying them. However, it could take months to even incorporate in Kenya, delaying the rest of your operations. G-P will help you start working in as little as a day or two without the stress of compliance.
Every country has different entitlement and termination terms. Adding these requirements to an employment contract before choosing a Kenya payroll option can help you stay compliant and come to an agreement with employees. You can hire an employee using a probationary term of up to six months that you can renew every 12 months. If you want to terminate an employee paid monthly or on a longer basis, they need at least 28 days of notice.
Payroll Processing Company in Kenya
G-P will help you expand quickly, without the need to set up your own payroll or subsidiary. Contact us today for more information about Kenya payroll outsourcing.