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.