🇰🇪 Hiring in Kenya

💡 A general guide to hiring and managing employees in Kenya through Toku. Use it to understand local employment topics and plan your questions. Toku will confirm the process and terms applicable to your hire.

ℹ️ Country-specific processes: Kenya, Finland, Vietnam, Serbia and Argentina. These guides provide general information. Additional or different steps may apply, and Toku will work with you directly to confirm the requirements for your situation. Continue submitting information and requests through Toku. Toku cannot offer or arrange Toku-sponsored benefits in these countries. Your applicable statutory entitlements and individual employment terms remain subject to local requirements and your signed agreement.

💲 Kenya pricing: Kenya has a set country rate starting at USD 599 per employee per month. This rate applies in place of the standard fee in your order form.

At a Glance

Onboarding a New Hire

Plan for approximately four weeks for onboarding. Submit the hire through Toku so we can confirm support, country-specific pricing, required information, signatures, registrations and the proposed start date. Additional requirements may apply, and the start date is confirmed individually.

Submit the new hire through the Toku platform for the employment agreement, statutory registrations and payroll setup. See Onboard Contributors as a Client Admin in Toku for the steps. Toku will confirm the expected onboarding timing for your hire.

Employer Costs

On top of gross salary, you pay the following employer contributions in Kenya:

As a rule of thumb, total cost of employment is roughly 107-108% of gross salary, and the effective percentage falls for higher earners because the NSSF contribution is capped.

Employees pay their own PAYE income tax (progressive rates from 10% to 35%), a matching 6% NSSF contribution, SHIF health insurance at 2.75% of gross salary, and their own 1.5% Affordable Housing Levy. These are withheld from gross salary, not charged on top. Toku calculates and remits all of the above.

Compensation & Payroll

ℹ️ Stablecoin payments are not supported in Kenya at this time.

Payroll in Kenya is monthly. Toku runs one payroll per month, and employees receive an itemized payslip each cycle showing gross pay, deductions, and net pay. Salaries are paid in KES by bank transfer.

Kenya sets minimum wages by location and job category through government wage orders. From 1 May 2026, the general minimum wage for unskilled workers in major cities (Nairobi, Mombasa, Kisumu, Nakuru, Eldoret) is KES 18,047.40 per month, with lower rates in other areas starting from around KES 9,268.07 per month. Where housing is not provided, a 15% housing allowance on basic wages applies under the wage orders. There is no statutory 13th month salary.

Employment Contracts & Probation

• Toku coordinates the employment-agreement process and confirms the applicable signing requirements. Review the final agreement for the employer details and individual terms.
• Indefinite-term contracts are the default. Fixed-term contracts must state the duration and reason, and repeated renewals can convert the relationship to indefinite employment.
• The applicable probation period and notice requirements are confirmed in the signed employment agreement. Toku will clarify any terms that differ from this general guide.

Working Hours

The standard working week is 45 hours, with an absolute maximum of 52 hours including overtime, and employees are entitled to at least one rest day in every seven. Overtime is voluntary and paid at 150% of the normal hourly rate on weekdays and 200% on rest days and public holidays.

Leave Entitlements

Public holidays and rest days do not count against annual leave. Sick leave requires a medical certificate, and maternity and paternity leave each require seven days' notice. Bereavement and compassionate leave are not statutory and follow the contract.

Public Holidays (2026)

Kenya observes 10 fixed public holidays, plus Eid al-Fitr and Eid al-Adha on dates confirmed by the government each year. When a holiday falls on a Sunday, the following Monday is observed. Employees who work a public holiday are paid at 200%.

Benefits Required

Toku cannot offer or arrange Toku-sponsored benefits in Kenya. We will work with you directly to clarify any applicable local arrangements. The statutory overview below is general guidance.

Statutory (included in employer costs above): NSSF pension contributions, SHIF national health insurance, the Affordable Housing Levy, and workers' compensation insurance covering workplace injury.

Ending Employment

In Kenya, Toku needs at least three weeks' notice to process a termination and its paperwork, so please submit it in the Toku platform as early as possible.

Kenyan law requires terminations to be both substantively fair (a valid reason such as misconduct, poor performance, or redundancy) and procedurally fair (written notice of the allegations, a hearing, and the right to be accompanied). Unfair termination claims can result in compensation of up to 12 months' wages, so involve Toku early whenever you are considering a termination. For the process, see How to Terminate an Employee or Contractor.

Severance pay applies only to redundancy, at no less than 15 days' pay for each completed year of service. Redundancies also require at least one month's written notice to the employee and the labour officer, plus fair selection criteria. Employees on maternity or sick leave are protected from termination.

Annual Leave at Termination

This section describes statutory annual leave. Any additional contractual or company-provided leave above the statutory minimum may follow different carryover, expiry, or payout rules under the employee's agreement or applicable policy, subject to local law.

Statutory leave termination payout: Generally required for accrued/pro-rata statutory leave. Employees accrue annual leave through the leave-earning period, and outstanding entitlement can form part of final pay.

Statutory carryover / look-back: Annual leave accrues at 1.75 days per completed month. Prior-year balances should be reviewed rather than assumed to expire automatically.

Admin responsibility: Track current-period accrual and any outstanding prior entitlement separately, and schedule leave regularly during employment.

Important exceptions: Where historic leave exists or leave could not be taken, Toku should confirm the legally outstanding balance before final pay is communicated.

See the Annual Leave / PTO Carryover & Termination Payout Guide for the cross-country framework.

Hiring Someone from Overseas?

Foreign nationals need a work permit, most commonly the Class D permit for employment with a specific employer, and the employer must show the role cannot be filled by a Kenyan national. Processing typically takes 4-8 weeks and can stretch to 3 months, and applicants need proof of qualifications, a job offer, and a certificate of good conduct. Talk to Toku before extending an offer to a candidate who needs sponsorship.

---

Last updated November 5, 2026 (onboarding link only). Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.