Kenya has a population of more than 50 million people, with key industries including manufacturing, agriculture, and services. There are many types of companies that can be formed in Kenya including limited partnerships, public companies, and more. Along with various registrations, companies must also apply for a business permit to begin operations.
Corporate tax rates vary by industry and type of company, and tax payments are due quarterly. Some labor and payroll considerations in Kenya include:
- Employment contracts can be verbal or written
- Standard work hours are 45 per week
- Minimum wage varies by region and profession, but the current urban minimum wage is 10,107 KES per month
- Kenya uses a Pay-As-You-Earn (PAYE) system
- Social security taxes are withheld by employers and sent to the National Social Security Fund and National Hospital Insurance Fund (NHIF)
- Foreign workers can only obtain a work permit if their presence is a benefit to Kenya and the position cannot be filled by a Kenyan national
Getting started or improving operations in Kenya can be challenging. Blue Marble has created cloud-based payroll technology with customized reporting to give you real-time access to your payroll across all countries and currencies. Our US-based service team and in-country experts in Kenya are here to help when questions come up. Talk to us today about simplifying your operations in Kenya and ensuring compliance with all payroll requirements on one easy-to-use platform.