How to hire remote employees in

Kenya

Kenya’s a great place to hire remote talent. But labor laws are complicated, and it’s nearly impossible to figure out how to hire there on your own. That’s what we’re for. By the end of this page, you’ll know exactly how you can hire remote talent in Kenya—without spending thousands in fees.

Country snapshot

CURRENCY
Kenyan Shilling (KES)
EMPLOYER TAXES
6.5%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Swahili,English

What to know before you hire in 

Kenya

Laws about hiring are complicated. Especially when they’re in countries you’re not used to hiring in. But we’re here to make things simple. Below, you’ll learn the two options you have for hiring in Kenya—and the advantages and disadvantages of each.

If you want to successfully hire in 

Kenya

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Kenya

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Kenya

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Kenya

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Kenya

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Kenya

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Kenya

?

If you’re hiring contractors in 

Kenya

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Kenya

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Kenya

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Kenya than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Kenya.

Taxes in 

Kenya

Employer tax

National Social Security Fund

National Housing Development Fund

Individual tax

Leave

Paid Time Off (PTO)

PTO is calculated by the:

  • An employee is entitled to 21 days of paid annual leave after the completion of 12 months of employment.

Public Holidays

There are 13 public holidays. If a holiday falls on a Sunday, then the proceeding Monday is observed.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • For every 12–month period, an employee is entitled to a total of 14 days of sick leave.
  • The first 7 days are paid at 100% of the regular pay rate and 50% for the remaining 7 days.
  • To be eligible for this leave, the employee must have completed at least 2 months of employment.
  • Also, the employee must be able to provide a medical certificate.

Maternity Leave

Women are entitled to 91 days of maternity leave paid at 100% of the regular pay rate. 

To be eligible, the woman has to give at least 7 days’ notice to their employer when the leave is intended to be taken and must be able to provide a medical certificate.  

Paternity Leave

Fathers are entitled to 2 weeks paid paternity leave.

Parental Leave

In the event of adoption for married employees, the same laws for maternity and paternity leave apply, however, instead of 7 days’ notice for the mother, 14 days’ notice must be given to the employer.  

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

The employer must first conduct a hearing when termination is being considered for misconduct, performance, or physical incapacity to perform duties. The employee is entitled to have a union representative or another employee present in the hearing.  

A termination letter with just cause must be provided.   

When the employer initiates the termination of an employment agreement, final wages must be paid out on the termination date.   

If the employee has been employed for more than 4 weeks, the employer is obligated to provide a certificate of employment after the employment agreement has ended.  

Notice Period

The notice period in Kenya is:

When the employee receives wages on a daily basis, no notice is required.  

When the employee is paid on a monthly basis, a 28-day written notice must be given by either the employee or employer. It is also possible to give payment in lieu of notice.

Severance Pay

There are no provisions in the law regarding severance pay except for when the reason for termination is redundancy. 

In this case, severance pay is 15 days of wages for every year of employment.  

Probation Period

The probation period in Kenya is 6 months. If the employer dismisses the employee during this time, 7 days’ notice or payment in lieu must be given.

Employee requirements in 

Kenya

Working Hours

A full work week is 52 hours for daytime employees and 60 for employees who work nights.  

Hours worked cannot exceed more than 116 hours in any 2– week period for daytime employees and 144 hours for nighttime employees.

Overtime

Overtime is paid at the rate of 150% of the regular pay.

Want to hire contractors, anywhere? Start with Panther today for $0.

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