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Employ someone in Kenya

Mwajiri mtu Kenya

A complete guide to hiring your first employee in Kenya — from registering as an employer to running your first payroll.

1

Agree terms and prepare a contract

Before hiring, prepare a written employment contract covering: job title, start date, salary and payment frequency, working hours, annual leave entitlement (minimum 21 days per year), and notice period. Kenya's Employment Act 2007 requires a written contract for all employees.

2

Register as an employer with KRA

Register your business for PAYE (Pay As You Earn) on iTax. You need a business KRA PIN already registered. Go to itax.kra.go.ke → Registration → Add Tax Obligation → PAYE. Once registered you will file monthly PAYE returns by the 9th of each month.

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3

Register the employee for NSSF

Register your business as an NSSF employer and enrol each employee. Contributions are KES 200/month (employee) + KES 200/month (employer) minimum. Register through eCitizen or at any NSSF office.

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4

Register the employee for SHA

Register your business as a SHA employer and enrol each employee. Contributions are 2.75% of gross salary deducted from the employee's pay. The employer remits contributions by the 9th of each month via sha.go.ke.

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5

OptionalRegister for NITA levy (if applicable)

If your business has more than 5 employees, register with the National Industrial Training Authority (NITA) and pay the industrial training levy of KES 50 per employee per month.

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6

Set up your payroll

Run payroll monthly: calculate gross salary, deduct PAYE (using KRA tax bands), deduct NSSF and SHA employee contributions, and pay the net salary. File PAYE return on iTax by the 9th of the following month.

7

Understand employee rights and termination

Kenya's Employment Act 2007 protects employees. Key rights: 21 days annual leave, 3 months maternity leave (fully paid), 2 weeks paternity leave, sick leave with medical certificate, and protection against unfair dismissal.

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In this guide

  1. 1Agree terms and prepare a contract
  2. 2Register as an employer with KRA
  3. 3Register the employee for NSSF
  4. 4Register the employee for SHA
  5. 5Register for NITA levy (if applicable)
  6. 6Set up your payroll
  7. 7Understand employee rights and termination

Quick facts

Minimum wage
Varies by sector and region — check current gazette notice
PAYE filing deadline
9th of each month
NSSF + NHIF remittance
9th of each month
Annual leave minimum
21 days