Hire employees in Kenya

Kenya’s growing pool of skilled professionals and competitive labor costs have made the country a top choice for international hiring. 

Although the labor force participation rate is 61% in 2025, it’s expected to rise in the coming years.

With more American companies hiring in Kenya for profiles such as tech, customer support, and digital services, the Kenyan workforce is thriving with opportunities. 

While this is promising, hiring employees in Kenya involves more than just sourcing talent; it also requires careful consideration of local labor laws and regulations. 

This blog takes you through everything you need to know before recruiting your team in Kenya, from hiring options and the best places to find talent to onboarding practices for employers. 

How to hire in Kenya

If your business is global, like a US-based company, and you want to hire employees in Kenya, here are some options to consider:

• Establish a legal entity in Kenya
• Hire independent contractors
• Partner with an Employer of Record (EOR)

Let’s explore these in detail. 

1) Establishing a legal entity in Kenya

One of the first options is to set up your company in the country. To do this, you must register with the Business Registration Service, obtain a PIN from the Kenya Revenue Authority, and register for social security with both the National Social Security Fund (NSSF) and the National Hospital Insurance Fund (NHIF). 

The process is time-consuming and usually takes 2 to 3 months.

When you hire after establishing a legal entity, you’re responsible for monthly payroll, PAYE (Pay As You Earn) income tax withholding, statutory deductions, and local labor compliance, including written contracts aligned with the Employment Act, 2007. 

2) Hiring independent contractors in Kenya

Another option is to hire independent contractors. Working with contractors is ideal if you’re looking for a faster and leaner setup. 

Kenyan law permits the employment of individuals as independent service providers under civil contracts, rather than traditional employment contracts. It relieves you of the responsibility for statutory benefits or payroll taxes, as contractors handle their taxes and contributions. 

However, hiring someone as a contractor can be a risk factor if you’re not aligning the expectations with those of a full-time role. You might face fines or penalties for misclassifying the worker by controlling their schedules or assigning responsibilities that require full-time employment. 

Therefore, you require a robust contract that clearly outlines the scope of work, deliverables, timelines, and intellectual property rights. 

3) Using an Employer of Record (EOR) in Kenya

Opting for an Employer of Record (EOR) is a streamlined option to hiring in Kenya. 

EOR platforms, such as Payoneer Workforce Management, act as the legal employer on paper, supporting local compliance, payroll, tax deductions, NSSF/NHIF contributions, and employment contracts.

You can manage employees’ daily tasks, team culture, and performance management, while the EOR supports compliance with Kenyan employment laws in terms of legal and tax matters. 

Learn about Employer of Record in Kenya. 

Where to find employees in Kenya

Once you have finalized a suitable approach to the hiring process, you should look for reliable sources for talent procurement. To hire employees in Kenya, you can consider the following options:

1) Online job boards

LinkedIn is one of the most commonly used platforms for finding talented employees in the country. Additionally, you can use the following job boards to tap into the talent pool in Kenya.

• BrighterMonday Kenya attracts over a million monthly visits and is used by companies across sectors. You can post roles, search CVs, and even run employer branding campaigns.
• Fuzu combines job listings with assessments and learning tools, making it a popular choice among employers seeking growth-focused professionals.
• MyJobMag Kenya is a go-to platform, particularly for mid-level and entry-level hiring. It’s easy to use, affordable, and comes with a built-in applicant tracking system for employers.
• Kenyan Jobs on Jiji.co.ke is ideal for employers hiring for blue-collar and casual roles, especially in transport, logistics, and sales.

2) Local recruitment agencies

Recruitment agencies have deep roots in the local job market and maintain large, up-to-date databases of pre-vetted candidates across industries. 

For American companies hiring in Kenya, this can be a huge time-saver, especially when looking to fill roles quickly or hire for hard-to-source skill sets. 

Also, local recruiters often have access to passive candidates or qualified professionals who aren’t actively job-hunting but may be open to the right opportunity. However, working with local agencies can be more expensive than self-managed hiring or an EOR, and you might have to engage extensively with the process to ensure legal compliance. 

3) EOR support

Another reliable way to streamline local employment when hiring in Kenya is to use an Employer of Record (EOR). These firms offer local expertise, while you can be focused on sourcing suitable candidates. They are typically aware of job seekers and employers expectations, giving insight into current market trends, salary expectations, and candidate availability. 

Unlike public job boards, EORs help you to build local teams quicker. 

Onboarding employees in Kenya

Once you hire in Kenya, a clear onboarding process helps employees integrate quickly and work efficiently. Here are the typical steps:

Step 1: Begin by collecting all required employee documents, including a national ID or passport, KRA PIN certificate, and verified academic or professional credentials.

Step 2: Register the employee with the Kenya Revenue Authority (KRA), the National Hospital Insurance Fund (NHIF), and the National Social Security Fund (NSSF).

Step 3: Draft and issue an employment contract that complies with Kenya’s Employment Act, clearly outlining the employee’s rights, responsibilities, compensation, and termination terms.

Step 4: Conduct an orientation session to introduce the company’s structure, policies, and code of conduct.

Step 5: Introduce the employee to their team members and direct supervisors to help establish working relationships.

Step 6: Provide role-specific training to familiarize employees with the required tools, responsibilities, processes, and expectations.

Step 7: Schedule weekly or bi-weekly check-ins to review performance, address challenges, and offer ongoing guidance.

Step 8: Deliver structured feedback regularly to support the employee’s development and reinforce continuous improvement.

Key employment laws in Kenya

If you’re an employer planning to hire in Kenya, it is essential to understand the country’s employment laws and its legal framework that protects employees’ rights while setting clear obligations for employers. 

Employers must remain compliant with the Employment Act, 2007, and related labor laws to avoid disputes, penalties, and reputational risks. 

Let’s explore what Kenya’s employment laws look like:

Employment contracts

According to the Employment Act 2007 (Cap. 226), Kenya’s employment landscape permits both written and oral contracts. A written agreement must define the following.

• Employee’s name, age, permanent address, and gender of the employee
• Employers’ name
• Role description
• Date of commencement of the employment;
• Duration of the contract
• Place of work
• Hours of work
• Intervals at which remuneration is paid; and
• Any other terms (optional)
• Remuneration and details of any other benefits;

Let’s understand the ‘benefits’ employees are entitled to.

Employee benefits

The Kenyan labor laws require employers to provide the following mandatory benefits to employees.

Working hours in Kenya

Kenya’s Employment Act does not specify a standard number of working hours per week. Instead, working hours are subject to agreement between the employer and employee, provided they align with the general provisions of the law. In general, the working hours in Kenya are 45 hours per week, which can be extended to 52 hours per week. 

Employer’s tax obligations

Employers hiring in Kenya are required to comply with the list of tax obligations.

• PAYE (Pay As You Earn): Employers are required to deduct income tax monthly according to progressive bands (10–35%) and remit it via KRA’s iTax.

• National Social Security Fund (NSSF): Both employer and employee contribute 6% each of pensionable earnings. The maximum monthly contribution is KSh 4,320 for both.
  • Tier I: 6% (~KSh 480 each)
  • Tier II: 6% (~KSh 3,840 each)

Termination of contract

In Kenya, an employment contract can be terminated by either party, given that the notice is served in writing. The duration is:

• During probation – 7 days
• After probation – 28 days

In case of redundancy, employees are entitled to at least 15 days’ pay for every completed year of service.

Explore Payoneer Workforce Management in Kenya

Hiring in Kenya is a smart move for companies looking to scale with skilled, English-speaking talent in East Africa’s fastest-growing economy. But managing employment regulations, taxes, social contributions, and payroll across borders can be overwhelming.

That’s where Payoneer Workforce Management can help you. Our unified platform helps global businesses engage full-time employees and independent contractors in Kenya and onboard employees in Kenya without setting up a local entity. 

Book a demo today.

FAQs

1. How to hire people in Kenya?

You can hire in Kenya by setting up a local entity or using an Employer of Record (EOR) like Payoneer Workforce Management, which supports employment contracts, payroll, and local compliance.

2. Do I need a local entity to hire employees in Kenya?

Typically, you don’t need to set up a local entity if you work with an Employer of Record (EOR) like Payoneer Workforce Management. We support local compliance, payroll, contracts, and statutory benefits, so you can engage employees in Kenya quickly and legally.

3. What are the mandatory employer contributions in Kenya?

Employers in Kenya are required to contribute to NSSF (National Social Security Fund), NHIF (National Hospital Insurance Fund), and PAYE (Pay As You Earn). These deductions must be made and submitted monthly.