Country Payroll Guide Kenya

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Key Facts

Capital
Nairobi
Date format
dd/mm/yyyy
Currency
Kenyan Shilling (KES)
VAT
the standard rate is 16%

Contributions

Employers

National Social Security
National Social Security - 5%
National Housing Development Fund (NHDF)
National Housing Development Fund (NHDF) - 1.5%
Total Employment Cost
Total Employment Cost - 5% to 6.5%

Employees

National Social Security
National Social Security - 5%
National Housing Development Fund (NHDF)
National Housing Development Fund (NHDF) - 1.5%
National Hospital Insurance Fund
National Hospital Insurance Fund - 150 to {{ top}} KES
Total Employee Cost
Total Employee Cost - 5% to 6.5% + NHIF

Minimum Wage

Minimum Wage

Monthly minimum wage ranges between industry and geographical location.

Payroll

Payroll Cycle
Monthly
13th Salary

No 13th salary.

Income Tax

Employee Income Tax (1)
Up to 288,000 KES - 10%
Employee Income Tax (2)
288,000 - 388, 000 KES - 25%
Employee Income Tax (3)
Over 388,000 KES - 30%

Working Hours

General Working Hours

52 hours for daytime workers; 60 hours for night time workers.

Overtime

150% pay.

Leave

Paid Time Off

Minimum 21 days after one year of service.

Public Holidays

13 public holidays.

Sick Days

14 days per year. The first seven days are paid at 100%, the remaining seven days are paid at 50% (for min. two months service).

Maternity Leave

91 days paid 100% – at least 7 days notice and medical certificate.

Paternity Leave

Two weeks paid leave.

Parental Leave

The same laws apply for maternity and paternity leave in event of adoption but with 14 days notice.

Other Leave

Pre-adoptive leave – 1 month.

Termination

Termination Process

Termination letter with just cause must be provided; last wage must be paid on termination date if the employer initiated the termination of an employment agreement.

Notice Period

28 days written notice if it’s on monthly basis; no notice if the employee is paid on daily basis.

Severance Pay

If the reason for termination is redundancy, the severance pay is 15 days of wages for every year of employment.

Probation Period

6 months.

Visa

Employment Visa

Foreign nationals wishing to work in Kenya are required to obtain a work permit. However, work permits are generally only granted in instances where the employer can prove that doing so would be beneficial to Kenya and the position cannot be filled by any suitable Kenyan applicants.