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.
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. Use the Federation of Kenya Employers (FKE) template as a starting point.
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.
Continue on eCitizen ↗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) under the old NSSF Act, or 6% of gross salary each side under the new NSSF Act 2013 — check current enforcement status. Register through eCitizen or at any NSSF office.
Continue on eCitizen ↗Register the employee for NHIF
Register your business as an NHIF employer and enrol each employee. NHIF contributions are income-based (KES 150–1,700/month deducted from salary). The employer remits the employee's contribution by the 9th of each month. Register through eCitizen.
Continue on eCitizen ↗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. Register at nita.go.ke.
Continue on eCitizen ↗Set up your payroll
Run payroll monthly: calculate gross salary, deduct PAYE (using KRA tax bands), deduct NSSF and NHIF employee contributions, and pay the net salary. File PAYE return on iTax by the 9th of the following month and remit NSSF and NHIF by the same date. Keep payslips for at least 5 years.
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. Redundancy requires 1 month notice + severance of 15 days pay per year served. Keep a disciplinary procedure in writing.
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In this guide
- 1Agree terms and prepare a contract
- 2Register as an employer with KRA
- 3Register the employee for NSSF
- 4Register the employee for NHIF
- 5Register for NITA levy (if applicable)
- 6Set up your payroll
- 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