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Payroll in Kenya
Payroll in Kenya runs in KES on a monthly payroll cycle is standard under the employment act. cycle, with statutory employer contributions and no general statutory 13th-month payment is mandated.. Gracemark operates it end-to-end, humans, not tickets.
Currency
KES, Kenyan shilling
Payroll cycle
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
Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.
Deeper guide
Hiring guide: Kenya →
Employ without entity
EOR services →
All countries
Global payroll overview →