Global Expansion Guide

Kenya

Manage and pay your employees easily with BIPO in Kenya and 170+ other markets. Build your international teams today with our global Employer of Record service!

Currency

Kenya Shilling (KES）

Official Language

Kiswahili

English

Capital

Nairobi

Employer of Record Kenya

Statutory Contributions

Minimum Wage

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Kenya

Global Hiring Guide
Kenya

Employer of Record Kenya

Embark on your business expansion in Kenya with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Kenyan market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This document was compiled on 09 July 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Employment contracts fall into two categories: fixed-term contracts (regular fixed-term/projectbased) and open-ended contra.
A written employment contract containing the following particulars shall be provided no later than 2 months after the commencement of employment:

- Employee’s full name, age, gender and permanent residential address;
- Employer’s name;
- Job description;
- Commencement date of employment;
- Type and term of contract;
- Workplace;
- Working Hours;
- Wage rate; Calculation Methods;
- Wage Payment Cycle;
- Continuous service start date (including prior service with previous employers eligible for tenure counting);
- Other agreed terms and conditions.

The written employment contract shall also include the following information, effective as of the 7th day after employment commencement:

- Annual leave and allowances, sick leave and allowances, pension schemes;
- Termination notice period;
- Contract term or expiry date (for fixed-term contracts);
- Permanent workplace or provisions for multi-location work;
- Employer’s registered address;
- Collective bargaining agreements;
- For overseas assignments exceeding 1 month: assignment duration, currency of wage payment, assignment allowances and benefits, repatriation arrangements;

Working Hours

Standard Working Hours

Daily	Weekly
Generally 8 Hours	Generally 44 hours

Note: Actual working hours vary by industry and applicable collective bargaining agreements.

Daily Rest: 1 hour a day

Weekly Rest:
At least 1 full day of rest per week

Overtime Compensation

Overtime on regular working days: Generally 1.5 times regular salary;
Overtime on weekly rest days: Generally 2 times regular salary.

Public Holiday

Scope of Application: Private sector employees

New Year’s Day	1/1/2026
Good Friday	3/4/2026
Easter Monday	6/4/2026
Eid ul-Fitr	24/4/2026
Labour Day	1/5/2026
Madaraka Day	1/6/2026
Huduma Day	10/10/2026
Mashujaa Day	20/10/2026
Jamhuri	12/12/2026
Christmas Day	25/12/2026
Utamaduni Day	26/12/2026

Notes: If a public holiday falls on an employee’s weekly rest day, compensatory rest is subject to official government announcements.

Overtime Compensation: Generally, 2 times the regular salary.

Leave Entitlement

Annual Leave

Type of employer:
Single employer

Eligibility:
Minimum 12 consecutive months of employment

Duration:
21 days per year (may be split into segments, one segment of at least two consecutive weeks)

Allowance:
Full salary, borne by the employer

Encashment:
Unused annual leave upon termination must be fully compensated

Sick Leave

Eligibility:
Minimum of 2 consecutive months of service; a medical certificate and prior notice to the employer are required.

Duration and Allowance:

7 days per year: Full salary paid by the employer;
Additional 7 days per year: Half salary paid by the employer.

Maternity Leave

Eligibility:
Pregnant and postpartum female employees; a medical certificate and prior notice (at least 7 days in advance) are required.

Duration: 3 Months

Allowance: Full salary, borne by the employer

Other Leave Type

Paternity Leave:
Eligible male employees; 2 weeks; full salary paid by the employer.
Employees qualified for adoption placement:
Written notice to the employer at least 14 days in advance, plus supporting adoption documents; 1 month; full salary paid by the
employer.

Social Insurance

Scope of Application: Applicable to employees of private enterprises

Social Insurance Type	Contribution Ceiling	Employee Contribution	Employer Contribution
NSSF Pension Scheme	Base: KES 9,000 Ceiling: KES 108,000	6%	6%
SHIF Medical Insurance	Base: KES 300 No Capped	2.75%	/
Housing Levy	/	1.5%	1.5%

Minimum Wage

Kenya does not adopt a unified national minimum wage. The government issues separate wage orders differentiated by region, job role and skill grade.

Termination Notice Period and Compensation

Termination Notice Period

Excluding project contracts and open-ended contracts, for employment contracts performed within Kenya:
- Daily-rated employees: Either party may terminate employment immediately at the end of any working day with no prior notice required.
- Employees paid on a cycle shorter than one month: Either party may terminate employment upon the end of the next payment cycle following the submission of written notice.
- Employees paid monthly or on cycles longer than one month:
  - Either party may terminate employment 28 days after issuing written notice; or
  - Immediate termination upon payment of equivalent pay in lieu of notice.

If a longer notice period is stipulated in the employment contract, the contractual term shall prevail.
Where an employee cannot understand the content of written notice, the employer must provide a verbal explanation.
For termination due to redundancy, the employer shall issue written notice one month in advance:
- Unionised employees: Notify their respective trade union and labour officers
- Non-unionized employees: Notify the employee personally and labour officers

Service Gratuity

Applicable to employees paid monthly or on payment cycles exceeding one month.
Exempted groups:
- Employees enrolled in statutory registered pension or provident fund schemes

- Employees covered under bonus or service compensation schemes established by collective bargaining agreements

- Employees offered superior compensation packages by the employer

- Employees enrolled in the National Social Security Fund (NSSF)

Calculation basis: Determined by employment contracts, collective bargaining agreements, or industry customary practices.

Redundancy Compensation

Eligibility:
Employees who satisfy all redundancy termination prerequisites (employee qualification, advance notice, full final settlement, etc.)
Compensation standard:
At least 15 days’ salary for each full year of completed service.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

Initial Consultation:
The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
Payroll Management:
We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Kenya’s regulations.
Contributions and Taxes:
Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
Compliance with Minimum Wage and Working Hours:
We guarantee that your employment practices adhere to Egypt’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
Leave and Paid Time Off Management:
Implement and manage leave policies that comply with Kenyan laws, ensuring a fair and transparent leave management system for your employees.
Regulatory Compliance:
Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
Other services:
Work visa and permit applications, termination procedures. Services may vary across countries.

Benefits of BIPO Employer of Record Service in Kenya

Unlock your growth potential with BIPO’s Employer of Record service in Kenya. Our EOR service empowers businesses to scale seamlessly while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles administrative HR tasks, enabling companies to focus on core business functions and accelerate growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

What is an EOR company?

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

Compliance in the global markets where you operate
Reduced costs and risk mitigation
Overall workforce productivity, effectiveness, and efficiencies

Who should engage our EOR service?

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

Scale their global business and be fully operational in foreign markets quickly
Reduce financial and HR complexities while expanding internationally
Minimise time spent trying to understand local labour laws and foreign tax systems
Stay compliant across global markets while reducing HR and administrative workflows
Benefit from a centralised and intuitive cloud HR platform to manage international teams

Why choose BIPO’s Employer of Record (EOR) service?

Our Employer of Record (EOR) service enables businesses to rapidly enter target overseas markets and compliantly establish local teams without the need to set up a foreign legal entity.

Covering the entire employee lifecycle, our service alleviates administrative burdens and facilitates your international hiring efforts.

Leveraging our proprietary service network across various countries and regions, we provide professional support to ensure local employment compliance and security.

Which countries/regions does BIPO’s Employer of Record (EOR) service cover globally?

BIPO’s service network spans over 170 countries and regions, with operations covering Asia, Europe, the Americas, Africa, and Oceania. The company has established its own offices in more than 50 of these locations, including:

Asia: Mainland China, Hong Kong, Taiwan, Macau, Singapore, Japan, South Korea, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, Cambodia, Myanmar, Laos, India, Pakistan, Brunei, Sri Lanka, Bangladesh, Timor-Leste, Dubai, Saudi Arabia, Uzbekistan, etc.
Europe: The UK, the Netherlands, Germany, Turkey, Spain, Poland, Denmark, Hungary, Romania, etc.
America: USA, Canada, Guam, Mexico, Colombia, Brazil, Argentina, Chile, Peru, etc.
Africa: Kenya, South Africa, Mauritius, Egypt, Morocco, Nigeria, etc.
Oceania: Australia, New Zealand, etc.

Global Expansion Guide

Kenya

Currency

Official Language

Capital

Employer of Record Kenya

Employment Contract

Working Hours

Public Holiday

Leave Entitlement

Social Insurance

Minimum Wage

Termination Notice Period and Compensation

BIPO as your Employer of Record

Benefits of BIPO Employer of Record Service in Kenya

Stay up to date with the latest employment regulations.

Frequently Asked Questions

HRMS

Global Payroll Outsourcing

Employer of Record

Grants

Resources

Company

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