Payroll in Kenya runs in KES (Kenyan shilling). Monthly payroll cycle is standard under the Employment Act. No general statutory 13th-month payment is mandated. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.
Monthly payroll cycle is standard under the Employment Act.
Working week
Standard working week is 45-52 hours depending on sector under the Regulation of Wages orders; overtime is generally paid at 150% (200% on rest days/holidays).
Minimum wage
Minimum wages are set by sector and location under the Regulation of Wages (General) Order, last revised in 2024, with rates varying by occupation and city grade.
13th-month
No general statutory 13th-month payment is mandated.
Employer cost
Employers contribute to NSSF (tiered, capped contributions), the new Social Health Insurance Fund (SHIF) which replaced NHIF from October 2024, and the Affordable Housing Levy (1.5% of gross pay) which is currently under evolving legal status.
Probation
Probation may be up to 6 months, extendable once by agreement for a further 6 months, per the Employment Act.
Notice period
Notice period is generally at least 28 days (or per contract) for monthly-paid employees; severance for redundancy is at least 15 days' pay per year of service.
Two ways to run payroll in Kenya
Own-entity payroll
For long-term presence in Kenya. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Eastern Africa time.
EOR-run payroll
No entity in Kenya? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2–3 weeks, no local incorporation.
Compliance essentials in Kenya
NSSF and the new SHIF health levy are the core contributions
21 days annual leave is the statutory floor
Growing 'Silicon Savannah' tech and CX talent base
English is an official working language
Strong remote-work adoption
Get a payroll quote for Kenya
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Send the role, a selected worker or an existing-team requirement in Kenya. Get a written recommendation covering the model, cost categories, responsibilities and next steps. One hire is welcome; no meeting required.
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