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Payroll in KeKenya.

Population

51,526,000

Languages

1.

Swahili

2.

English

Country Capital

Nairobi

Currency

Kenyan shilling (KES)

Kenya is a great country for an expansion, especially if you want to form ties to other countries in Africa. While you get ready for this exciting time, G-P can help make it as successful as possible.

As a global Employer of Record (EOR), we’ll manage the risk so that you can manage your company. With us, you don’t have to set up an entity and can start working in Kenya quickly and compliantly. We’ll also streamline payroll and make sure your teams get paid the right amount at the right time.

Taxation rules in Kenya

Employers and employees currently each contribute to the National Social Security Fund (NSSF). 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

Companies have 3 main payroll options in Kenya:

  • Internal: Large subsidiaries with a long-term commitment to Kenya may create their own internal payroll to pay employees. If you pick this option, you’ll need to hire a large HR team and make sure you have a compliance expert to help you along the way.
  • Local payroll processing company: A local Kenya payroll processing company is another option businesses can choose. While this company can handle your payroll, you’ll still have to worry about compliance.
  • G-P: The easiest way to run payroll in Kenya and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time and compliantly, freeing you to focus on other important aspects of your business.

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 EOR model 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 a fraction of the time without the stress of compliance.

Entitlement/termination terms

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. You can hire an employee using a probationary term of up to 6 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 1 month of notice.

Streamline global payroll management with G-P.

G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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