Employer of record in Kenya: costs and rules
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On a KES 5,192,400 salary, a Kenyan employee costs the employer 3.00% on top of pay, split almost evenly between the NSSF pension contribution (capped at KES 6,480 a month) and the 1.5% Affordable Housing Levy, per the NSSF Year 4 notice and the Kenya Revenue Authority; EOR list prices run from $199 (Payoneer Workforce Management, formerly Skuad) to $699 (Oyster) a month (pricing pages read October 2026). The rule US companies most often misapply is the cap: NSSF's 6% stops at KES 108,000 of monthly pay, while the housing levy keeps running on the full salary.
An employer of record in Kenya is a Kenyan company that becomes the legal employer of your hire, registers them with NSSF, remits the housing levy to KRA and runs payroll, while you manage what they work on.
- Employer cost on a sample salary
- 3.00% (KES 155,646): NSSF…on top of gross pay
- Currency
- KES
On this page
Kenyan payroll rules a US employer should know
Kenya's employer charges are small but built differently from US payroll taxes.
- NSSF in two tiers. Since February 2026 (Year 4 of the NSSF Act phase-in), the lower earnings limit is KES 9,000 and the upper limit KES 108,000. The employer pays 6% on each tier, so at most KES 540 plus KES 5,940, or KES 6,480 a month. The employee pays the same.
- Housing levy with no ceiling. The Affordable Housing Levy is 1.5% of gross monthly pay from the employer and 1.5% from the employee, collected by KRA since March 19, 2024 and due by the 9th working day after month end.
- Minimum wage by place. Legal Notice 95 of 2026, in force May 1, 2026, as reproduced in Grant Thornton Kenya's 2026 wages guide (a secondary source), sets a general laborer's floor at KES 18,047.40 a month in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret, KES 16,650.95 in Mavoko, Ruiru and Limuru, and KES 9,268.07 elsewhere.
- Notice and redundancy. Under the Employment Act 2007, as summarized in a CMS law firm guide from February 2025 (secondary and more than a year old), monthly-paid staff get 28 days' written notice unless the contract says otherwise, and redundancy pay is 15 days' pay for each completed year of service, plus other terminal dues.
We have not yet confirmed the health contribution (SHIF), the NITA training levy, annual leave, probation, public holidays or pay frequency from official sources. Ask your EOR which it applies and check with the Ministry of Labor and Social Protection.
Employment costs and rules in Kenya
| Item | Kenya |
|---|---|
| Employer social contributions | 7.5% on pay up to KES 108,000/mo (NSSF 6% + Affordable Housing Levy 1.5%); above that NSSF is a fixed KES 6,480/mo, so the total falls toward 1.5% plus that amount |
| What the employer pays | NSSF pension 6% employer on pensionable pay up to the UEL (Tier I 6% of LEL KES 9,000 = KES 540; Tier II 6% of KES 9,000 to 108,000 = KES 5,940; max KES 6,480/mo); Affordable Housing Levy 1.5% of gross monthly salary, no cap |
| Caps and ceilings | NSSF Year 4 limits from Feb 2026: LEL KES 9,000, UEL KES 108,000; max NSSF KES 12,960/mo total (6,480 employer + 6,480 employee). AHL uncapped, due by the 9th working day after month end (applies since Mar 19, 2024) |
| Employee contributions | NSSF 6% up to UEL (max KES 6,480/mo) + AHL 1.5% of gross; SHIF not confirmed today |
| Minimum wage | Set by location and occupation, Regulation of Wages (General) (Amendment) Order 2026, Legal Notice 95, effective May 1, 2026: general labourer KES 18,047.40/mo in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret cities; KES 16,650.95 in Mavoko, Ruiru and Limuru; KES 9,268.07 in all other areas |
| Notice period | 28 days' written notice where pay is monthly, absent contract terms (Employment Act 2007) |
| Severance | Redundancy: 15 days' pay for each completed year of service, plus other terminal dues (Employment Act 2007) |
| Sample salary used | KES 5,192,400 a year (KES 432,700/mo) = USD 40,000 at CBK 129.81 (Oct 15, 2026) |
| Employer cost on that salary | 3.00% (KES 155,646): NSSF 6,480 x 12 = 77,760 + AHL 1.5% x 5,192,400 = 77,886 |
Checked October 16, 2026. Source type: official (NSSF Year 4 notice to employers, KRA public notice Mar 21, 2024) for contributions; secondary (Grant Thornton Kenya reproduction of Legal Notice 95/2026; CMS law firm guide, Feb 13, 2025) for minimum wage, notice and severance. Sources are listed at the end of this page.
What an EOR charges to employ someone in Kenya
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
Worked example: a KES 432,700 a month hire
USD 40,000 at the Central Bank of Kenya rate of 129.81 is KES 5,192,400 a year, or KES 432,700 a month: about 24 times the top city minimum wage.
| Line | Per month | Per year |
|---|---|---|
| Gross salary | KES 432,700.00 | KES 5,192,400.00 |
| NSSF employer, Tier I (6% of KES 9,000) | KES 540.00 | KES 6,480.00 |
| NSSF employer, Tier II (6% of KES 9,000 to 108,000) | KES 5,940.00 | KES 71,280.00 |
| Affordable Housing Levy, 1.5% of gross, no cap | KES 6,490.50 | KES 77,886.00 |
| Employer contributions (3.00%) | KES 12,970.50 | KES 155,646.00 |
| Employer cost before the EOR fee | KES 445,670.50 | KES 5,348,046.00 |
| EOR fee at $599 a month | KES 77,756.19 | KES 933,074.28 |
| All-in cost | KES 523,426.69 | KES 6,281,120.28 |
Source: NSSF Year 4 (2026) notice to employers; KRA public notice on the Affordable Housing Levy. Fee row: $599 x 12, the list price Deel and Remote showed on Oct 16, 2026, converted at the Central Bank of Kenya rate of KES 129.81 per USD (Oct 15, 2026). Checked Oct 2026.
The math: NSSF is capped, so it is 6,480 x 12 = 77,760. The levy is 1.5% x 5,192,400 = 77,886. Together that is KES 155,646, or 3.00% of salary. At a pay level under KES 108,000 a month, the employer's share is the full 7.5% instead. The fee is $7,188 x 129.81 = KES 933,074.28; $199 makes it KES 309,986.28, $399 KES 621,530.28 and $699 KES 1,088,846.28. On this salary the EOR fee costs about six times the statutory charges.
Redundancy is the other number to plan for: after 4 completed years, the floor is 60 days' pay. Try other salaries in the international employee cost calculator.
Kenyan contractors versus employees
Many US teams start in Kenya with contractors. It works for defined projects. A full-time role with fixed hours and your managers in charge looks like employment, which brings NSSF, the housing levy, notice and redundancy pay with it. Compare contractor payment platforms, or a contractor of record that carries the classification risk.
Opening a Kenyan entity
With your own company you register with KRA and NSSF, file monthly and handle the housing levy deadlines yourself. With statutory charges this low, the EOR fee is most of the overhead, so the entity case turns on headcount. Our EOR versus own entity guide lays out the break-even.
Choosing a provider in Kenya
Ask every Kenya provider one thing before price: does it employ through its own Kenyan entity or a local partner? Oyster describes a mix of owned entities and partners; Multiplier claims its own entity everywhere. Late or held wages appear in Trustpilot complaints about several EORs, including Oyster, G-P, Atlas and Rivermate, so put the pay date in the contract. On our published scores Multiplier is first (79/100) and Oyster second (64/100); the method is on how we score.
Then compare the ranked list of EORs and the Oyster, Remote and Deel reviews. The EOR cost index shows Kenya against other African markets.
Frequently asked questions
How much does a Kenya employer of record charge?
What are the NSSF limits in Kenya for 2026?
Is the Affordable Housing Levy capped?
What is Kenya's minimum wage in 2026?
What does redundancy cost in Kenya?
Sources (13)
- NSSF Kenya: Notice to employers: Year 4 (2026) NSSF contribution rates (checked Oct 16, 2026)
- Kenya Revenue Authority: Collection of the Affordable Housing Levy (checked Oct 16, 2026)
- Grant Thornton Kenya: Wages guide 2026 (Legal Notice 95 of 2026) (checked Oct 16, 2026)
- CMS: Expert guide to dismissals: Kenya (checked Oct 16, 2026)
- Central Bank of Kenya: Exchange rates (rate for Oct 15, 2026)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- nssf.or.ke/employers (checked October 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.