Hiring in Kenya

The terms set out role, salary in KES, working hours, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the standard contract language for commercial roles.

Fixed-term contracts are permitted, but repeated renewals can create a legitimate expectation of renewal, so most EORs default to indefinite terms.

Set probation from day one. An extension of up to 6 more months needs the employee's agreement, and probation cannot exceed 12 months in total.

The Employment and Labour Relations Court has ruled that employees on probation are still owed a fair hearing, so probation is not a free exit. Some EORs shorten it as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Normal and overtime hours combined are capped at 116 in any two consecutive weeks.

Define normal hours in the contract, because overtime is measured against them. Senior roles often treat salary as covering extra hours, so put the position in writing either way.

The statutory floor is already high, and professional packages often sit at or a little above it, so budget on 21 days plus any contractual extras.

Paid sick leave is 7 days on full pay and 7 on half pay per year once the employee has two months' service. Maternity leave is 3 months and paternity leave 2 weeks, both on full pay and funded entirely by the employer, so confirm how the EOR bills them.

Either side may terminate on notice or pay in lieu. Every dismissal needs a valid reason and a fair hearing, and the burden of proving both sits with the employer. Redundancy also needs a month's written notice to the labour officer.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any contractual severance. Unfair termination awards can reach 12 months' gross pay, so keep a documented reason.

Private medical cover and group life are standard for professional roles even though they are not mandatory. SHIF health cover is funded by a 2.75% deduction from the employee, not by the employer.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 1.5% of gross for the Housing Levy, NSSF matched up to KES 6,480 a month, a KES 50 NITA levy and WIBA cover. That is before the EOR fee.

Remittance deadlines are the trap. PAYE, NSSF and SHIF are due by the 9th of the following month and the Housing Levy by the 9th working day, with penalties for late payment, so ask how the EOR evidences its filings.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the localisation test and understudy plan apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a lawful basis and documented safeguards.

Ask whether the EOR is registered with the Data Protection Commissioner, where payroll data is hosted and who in the partner chain can see it.

Incorporation here is straightforward, but the running cost is the point: KRA, NSSF, SHA and NITA registrations, a county business permit, accounting, audit and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.