Employer of Record (EOR) in Kenya
Hire, onboard, and pay new team members in Kenya or regulate your employment status as a freelancer — all with Native Teams’ EOR services. We work in the background, ensuring full compliance with local and international labour law regulations.
How does an EOR in Kenya work?
If you decide to partner up with an EOR provider like Native Teams, we’ll act as your legal employer. In other words, all the administrative tasks regarding running a payroll, benefits administration, and tax withdrawal will become our responsibility. You’ll continue to manage and oversee your employees’ daily work or provide your services to clients as a freelancer. The only thing you’ll need to do is provide payments for our services.
Who can use EOR Services in Kenya?
Whether you’re a business owner or a freelancer, EOR services can help anyone looking to ensure compliance on the global scene.
Features of Native Teams EOR services in Kenya
Employment status
When you bring on board new team members via Native Teams, they will be appropriately engaged under our organisation and provided with a contract that complies with all employment laws and regulations in Kenya.
HR administration and documentation
We will simplify HR administration through automation and store your employees' paperwork within the Native Teams dashboard, giving you immediate access with just one click.
Global payroll
Calculating salaries, taxes, benefits, and various deductions for your international staff can be challenging. Our payroll calculators will simplify this process, allowing you to manage payroll for your entire global workforce on a unified platform.
Benefits
Your newly recruited employee will be eligible to receive all mandatory benefits in Kenya, including healthcare, insurance, and retirement coverage. Additionally, you have the choice to offer additional benefits such as gym memberships and wellness options if desired!
Explore Kenya’s labour laws in our hiring guide.
What legal requirements exist for employment in Kenya
Written employment contract
Employers must provide their employees with a written employment contract in English or Swahili outlining the employment conditions and salary.
Taxes
Pay As You Earn (PAYE) is a compulsory tax imposed on the earnings of all employees by the Kenya Revenue Authority (KRA). Employers are legally required to deduct PAYE from employees' salaries and wages according to the current rates. These deductions must then be submitted to the KRA in full by the 9th day of the subsequent month.
Social security contributions
Employers are obliged to contribute towards their employees’ social security contributions. In Kenya, the employer must contribute 6% of the employee’s monthly earnings to the National Social Security Fund (NSSF).
Visa/work permits
Foreign individuals are only permitted to work in Kenya if they possess a valid work permit or pass issued by the Department of Immigration. Different categories of work permits are available, each tailored to the type of work undertaken by foreign nationals. Among these, Class D is commonly sought by foreign employees.
Occupational safety and health act
Employers must ensure workplace safety and health standards are met to protect employees from hazards and accidents.
Work injury benefits act
This Act mandates employers to provide compensation to employees who suffer work-related injuries or occupational diseases.
National Hospital Insurance Fund (NHIF) act
Employers must register with the National Hospital Insurance Fund and contribute towards employees' access to healthcare benefits.
Please note that Kenya’s laws and regulations can change. So, it’s important to keep abreast of the latest developments regarding labour law.
Why choose Native Teams as your Kenya Employer of Record?
With legal entities in 85+ countries, Native Teams has helped 70,000+ users rapidly expand their global presence. By leveraging our expertise in taxes, payroll, and social security contributions, you can ensure that every aspect of employee recruitment and compensation hits the compliance mark in Kenya. In addition, we provide work visa and permit assistance for a smooth relocation process, whether you’re a digital nomad, employer, or employee.
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party entity that assumes the legal responsibilities of employing workers for another company. The EOR handles tasks such as payroll, tax compliance, benefits, and ensuring adherence to local labour laws. It also helps freelancers and remote workers formalise their employment status and access benefits.
What are the costs of using an Employer of Record in Kenya?
EOR costs in Kenya vary depending on the provider, employee count, and service requirements. Native Teams has one of the most affordable and transparent pricing structures for your global work needs. The Employer of Record plan starts at €99 per month per employee, and the Work Payments plan starts at €19. Both plans cover all the essential tools and features needed for legal employment.
What is the difference between PEO and EOR?
An EOR fully takes on legal employment responsibilities such as payroll, taxes, and compliance, while a PEO shares these responsibilities with the client in a co-employment arrangement. EORs are ideal for companies expanding into new regions without legal entities, whereas PEOs are suited for businesses already operating in a country to streamline HR functions.
What are the responsibilities of an Employer of Record (EOR) service provider?
EOR providers act as the legal employer, managing payroll, benefits, and employment contracts while ensuring compliance with labour laws. They mitigate risks by assuming liability for employment issues and offer HR support, allowing businesses to focus on core operations.
Is using an Employer of Record in Kenya legal?
Yes, using an EOR in Kenya is fully legal and complies with Kenyan labour regulations. International companies often use EOR services to enter the Kenyan market, while freelancers use them to formalise employment.
Why should I use EOR instead of opening my own company or an office in Kenya?
An EOR allows businesses to avoid the complexities of setting up a legal entity in Kenya. The EOR handles legal employment tasks, such as payroll and compliance, and provides flexibility to scale operations without the challenges of closing a company if plans change.
How many people can I employ in Kenya?
There is no legal limit on the number of employees a company can hire in Kenya, provided labour laws are followed. The number you can hire depends on your business needs, financial capacity, and ability to manage staff effectively.