Kenya is East Africa’s leading technology and financial services hub, with Nairobi positioning itself as a gateway city for continental expansion. The country has a young, educated English-speaking workforce, a mature banking sector and a regulatory environment that rewards compliant employers. For foreign companies that want to hire in Kenya without incorporating a local entity through the Business Registration Service (BRS), an Employer of Record is the fastest, most compliant route to market.
Quick facts: Employer of Record Kenya at a glance
- Kenya’s primary employment legislation is the Employment Act 2007 and the Labour Relations Act 2007
- Payroll taxes include PAYE (administered by the KRA), NSSF, SHA and NITA levy
- The Affordable Housing Levy (AHL) applies at 1.5% employer and 1.5% employee
- Standard working hours are 52 hours per week (8 per day over 6 days) under the Employment Act 2007
- Minimum annual leave is 21 working days after 12 months of service
- An EOR removes the need for BRS incorporation, KRA employer registration or NSSF enrolment on the client side
What Is an Employer of Record in Kenya?
An Employer of Record in Kenya is a locally registered company that employs workers on behalf of a foreign client. The EOR becomes the legal employer under the Employment Act 2007 and Labour Relations Act 2007: it signs the employment contract, registers with the KRA for PAYE, registers with NSSF and SHA, pays the NITA levy and handles all statutory obligations. The client company directs the employee’s work while the EOR carries the employment liability and all compliance obligations.
Africa Deployments Kenya operates through Bergmont Employer of Record Limited (BRS: PVT-BEUE3LMJ | KRA PIN: P052386396W), based in Nairobi. Every employment relationship we manage in Kenya is backed by a locally registered entity – compliant with the Employment Act 2007, the Labour Relations Act 2007 and all KRA obligations.
Kenyan Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Primary legislation | Employment Act 2007; Labour Relations Act 2007 |
| Standard working hours | 52 hours per week; 8 hours per day (6-day week); 45 hours for night workers |
| Annual leave | 21 working days after 12 months of continuous service |
| Sick leave | 30 days paid in any 12-month period (first 7 days full pay; subsequent 7 days half pay) |
| Maternity leave | 3 months fully paid |
| Paternity leave | 2 weeks fully paid |
| Minimum wage | KES 15,201/month (Nairobi, general labourers; varies by sector and location) |
| Notice period (termination) | 28 days minimum; may be varied upward by contract |
| Probation period | Maximum 6 months under the Employment Act 2007 |
| Dispute resolution | Employment and Labour Relations Court (ELRC) |
Payroll, Tax and KRA Compliance in Kenya
Every employer in Kenya must register with the Kenya Revenue Authority (KRA) for PAYE. Monthly PAYE is deducted from employee salaries using a progressive rate schedule (10% to 35%) and remitted by the 9th of the following month via the iTax platform. Employers must also register with NSSF (tiered contributions under the NSSF Act 2013), SHA (Social Health Authority at 2.75% of gross salary), the NITA levy (KES 50 per employee per month) and the Affordable Housing Levy (1.5% employer + 1.5% employee of gross salary).
Why Companies Choose Africa Deployments Kenya for EOR
- Own registered entity: Bergmont Employer of Record Limited (BRS: PVT-BEUE3LMJ) is registered in Nairobi with its own KRA PIN – no intermediaries.
- 48-hour onboarding: Employees are contracted, KRA PAYE-registered, NSSF-enrolled and SHA-registered within 48 hours.
- Full Employment Act 2007 compliance: Contracts, leave entitlements, working hours and termination procedures all follow Kenyan law.
- KRA iTax filings managed monthly: PAYE remittances by the 9th of each month – clients have no KRA filing obligations.
- ELRC risk management: Employment documentation structured to minimise Employment and Labour Relations Court exposure.
- NITA, SHA, NSSF and AHL managed: All statutory contributions calculated and remitted each month.
Frequently Asked Questions
Can a foreign company hire employees in Kenya without a local entity?
Yes. Using an Employer of Record like Bergmont Employer of Record Limited, a foreign company can hire compliantly in Kenya without incorporating through the BRS, registering with the KRA as an employer, or setting up NSSF and SHA enrolments independently.
What is the ELRC and how does it affect employers?
The Employment and Labour Relations Court (ELRC) is Kenya’s specialist labour court. Employees can refer unfair dismissal and unfair labour practice matters to the ELRC within 3 years under the Employment Act 2007. Africa Deployments Kenya maintains employment documentation to Employment Act 2007 standards to minimise ELRC exposure.
What is the Affordable Housing Levy in Kenya?
The Affordable Housing Levy (AHL), introduced under the Affordable Housing Act 2024, requires employers and employees to each contribute 1.5% of gross monthly salary. It is remitted monthly to the KRA alongside PAYE via the iTax platform.
How quickly can Africa Deployments Kenya onboard an employee?
Africa Deployments Kenya typically onboards employees within 48 hours of receiving complete employee documentation and a signed service agreement. KRA PAYE registration, NSSF enrolment, SHA registration and contract execution all happen within that window.
About Africa Deployments Kenya
Registered Company Name: Bergmont Employer of Record Limited
Address: Mercantile House, Koinange Street 2nd floor, Office 202, P.O Box 4979-00200, Nairobi, Kenya
BRS: PVT-BEUE3LMJ | KRA PIN: P052386396W
Website: kenyadeployments.com
Kenya’s Employment Act 2007 is detailed and enforced. Getting it right from the first hire – KRA-registered payroll, NSSF and SHA enrolment, ELRC-ready documentation – requires a locally registered employer of record with standing in the country. Bergmont Employer of Record Limited gives foreign companies that from day one, with employees onboarded in 48 hours.
Reviewed by: Africa Deployments Compliance Team
