Kenya is a land of contrasts. The country’s landscapes and cultural traditions are iconic, from the Maasai Mara National Reserve to Lamu Island, Nairobi to Mombasa.
And Kenya is increasingly drawing the attention of employers seeking international talent.
A skilled, English-speaking workforce, paired with cost-effective labor and the incubating nature of Nairobi’s emerging tech scene, enables Kenya to offer a unique blend of business opportunities and captivating visitor experiences.
Here is an overview for employers planning a global expansion in Kenya, including employment laws and the available talent pool.
Advantages of Hiring in Kenya
Kenya is home to remote global talent with a wide range of skills. Pro-business incentives, such as the education and industry development outlined by Kenya Vision 2030, are attracting the attention of both international companies and employees.
Here are some key facts about Kenya:
- Languages: Swahili, English
- Currency: Kenyan Shilling (KES)
- Capital City: Nairobi
- Population: 56 Million
- Cost of Living Rank: 99th
Skilled Workforce & Strong ICT Infrastructure
In Africa’s Silicon Savannah, Kenya’s skilled workforce has built a thriving fintech sector with growing ventures in energy, climate, education, and healthcare.
The Kenyan government actively supports international investment and streamlined regulations and tax incentives to make Kenya accessible for businesses seeking to expand their global team.
Kenya’s advanced information, communications, and technology infrastructure — including excellent internet connectivity and widespread mobile networks — makes it a supportive location for remote work.
Common Job Sectors Supported by Remote Talent in Kenya
Kenya's top talent holds degrees in various science, technology, engineering, and mathematics (STEM) fields.
Common job sectors for international companies hiring remote Kenyan talent include:
- Software development
- IT services
- Business processing outsourcing
- Customer support
- Digital marketing
- Financial services
Hiring Compliantly in Kenya
Hiring remote employees in Kenya offers a significant cost advantage compared to many Western countries. However, employers first need to navigate the specifics of Kenyan labor law.
Employment Contracts
Four main types of employment contracts, outlined in the Employment Act, govern employment in Kenya.
Employees who are employed for two months or longer must receive written details outlining the main covenants of their contract. The following contracts may initially be written or verbal:
- Permanent for an unspecified period: This is an ongoing, open-ended agreement with no end date.
- Fixed-term for a specified period: These contracts outline a specific duration of employment and are renewal for up to one month in certain circumstances.
- Task-based: This agreement is designed for short-term engagements focused on completing a specific task or project.
- Casual: Casual employees are hired daily for short periods, not exceeding 24 hours, and are paid at the end of the workday.
Essential details of all employment contracts in Kenya include, but are not limited to, job description, compensation, working hours, and ownership of any intellectual property created.
Working Hours & Pay
The minimum wage is KES 15,201. The typical workweek is generally 45 hours, although a 52-hour workweek is also standard. Overtime pay is at least one and a half times an employee’s standard hourly rate.
Probation Periods
Probationary periods may last up to six months.
Employer Taxes
Employers contribute 6% of employee salaries through payroll, with an additional 1.5% payment made to the Industrial Training Levy Fund and a flat-rate payment per employee to the National Housing Fund.
Termination Process & Severance Pay
If an employer is planning on terminating an employee due to misconduct, poor performance, or incapacity, it must first conduct a hearing. Following the hearing, the employer must provide the employee with a letter justifying the termination.
Notice Period
The required notice period for termination varies depending on payroll:
- Daily wage earners: No notice period is required.
- Employees paid weekly: One week’s notice
- Employees paid bi-weekly: Two weeks’ notice
- Employees paid monthly: A 28-day notice period is mandatory.
Employers may provide payment in lieu of notice.
Severance Pay
Kenyan law does not mandate severance pay for most terminations other than as outlined in employment contracts or collective bargaining agreements.
However, in cases of redundancy, employees are entitled to severance pay equivalent to 15 days’ wages for each completed year of service with the company.
Paid Leave Laws in Kenya
Vacation and Holiday
In Kenya, all employees receive leave for public holidays. Additionally, Kenyan employees are entitled to at least 21 days of annual leave after one year of employment.
Sick Leave
Employees have the right to 14 days of paid sick leave per year after completing two months of employment. Employees are paid their full wages for the first week and at half their regular pay rate for days 8-14.
Parental Leave
Pregnant female employees are eligible for three months of fully paid maternity leave. New fathers receive two weeks of paid paternity leave. Parents preparing to adopt a child are eligible for one month of pre-adoptive leave at full salary.
Why Digital Nomads Love Kenya
Although Kenya does not have a digital nomad visa, the country offers other perks — like some of the fastest internet speeds in Africa — likely to attract digital nomads. Talk of a new international talent-friendly tax scheme is also on the rise.
Coworking spaces like Nairobi Garage make building a network of like-minded travelers easier. And although the cost of living throughout Kenya is generally lower than in Western countries, Mombasa offers reduced costs for nomads interested in working in a city other than Nairobi.
Hire in Kenya with RemoFirst
As an Employer of Record (EOR), RemoFirst simplifies hiring employees in different countries — including Kenya — by handling tasks like global payroll, taxes, and employee benefits and lessening the burden of navigating international employment regulations.
Book a demo today to learn more.
