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Employee Leasing in Kenya

Thanks to its strategic location near the Horn of Africa, its integration in the African Continental Free Trade Area, and the quality of its technology infrastructure, Kenya offers great business opportunities for companies wishing to expand their activity into Eastern Africa. The country has one of the most attractive business environments in Sub-Saharan Africa and its local consumer market is rapidly growing.

One of the quickest ways to enter the Kenyan market is to hire local employees through the employee leasing services offered by FMC Group. These services allow businesses to expand into Kenya without setting up a local subsidiary. They also help companies focus on their growth strategy and measure their business potential as they go, without batting an eye about the administrative management of employees.


  • Advantages of Employee Leasing in Kenya
  • Employee Leasing Services Offered by FMC Group
  • Advantages of the Kenyan Market
  • Recruitment in Kenya
    • Minimum Wage and Payroll
    • Social Contributions and Taxes
    • Working Hours and Overtime
    • Vacation Days
    • Parental Leave and Sick leave
    • Notice Period
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Stephan Dorn FMC Group

Advantages of Employee Leasing in Kenya

  • Expanding activity into Kenya through employee leasing allows clients to quickly enter the market of East Africa and reach the large African consumer market, thanks to the African Continental Free Trade Area.
  • Employee leasing gives businesses great flexibility and reduces the financial and time costs of expanding into the Kenyan market.
  • Employee leasing helps clients delegate the administrative management of employees to FMC Group, allowing them to focus all their energy on business decisions that contribute directly to growth.

Employee Leasing Services Offered by FMC Group

  • Selection of candidates according to the client’s needs and criteria;
  • Recruitment of the best candidates after the client’s approval and negotiation of employment contracts;
  • Management of the payroll according to international standards;
  • Payment of social contributions and taxes in accordance with the Kenyan labor law;
  • Payment of other expenses and allowances on behalf of the client;
  • Monitoring of paid leaves and employee vacations according to the employment contract;
  • Negotiation and implementation of private insurance for employees if requested;
  • Continuous communication with the client regarding the management of their employees.

Management and Reporting Flow of Employee Leasing Services

Management and Reporting Flow Chart

Advantages of the Kenyan Market

  • Kenya has one of the most competitive economies in Eastern Africa. It is generally considered the region’s most important economic, commercial, and logistics hub. Furthermore, Kenyan cities, especially the capital Nairobi, are known for hosting some of the most successful African startups, thanks to the strong entrepreneurial spirit of Kenyan youth.
  • Kenya is known for the quality of its mobile services, internet access, and e-commerce, thanks to the country’s advanced technology infrastructure, especially in urban areas. Kenya’s internet penetration rate stands at around 42%, which is considerably higher than the average internet penetration rate in Eastern Africa, which stands at only 26%.
  • Over the past decade, the Kenyan government has made several major reforms to reduce bureaucratic obstacles to doing business in Kenya and encourage foreign investments. According to the World Bank’s 2019 Doing Business ranking, Kenya is 56thworldwide and third in Sub-Saharan Africa in terms of the ease of doing business. The country climbed 80 ranks in the index between 2014 and 2019, from the 136thrank globally to the 56th.
  • The Kenyan middle class is rapidly growing. It currently constitutes around 44.9% of the total population and is expected to continue expanding by an average annual growth rate of 5%. This contributes to the growing attractiveness of the Kenyan consumer market, as the population has increasing disposable income every year.
  • Further details about the advantages of the Kenyan market are provided by the Kenya Investment Authority.

Recruitment in Kenya

Minimum Wage and Payroll

  • The monthly minimum wage in Kenya varies depending on the industry and the region. It ranges from KES 13,573 (EUR 113) to KES 30,627 (EUR 254).
  • The payroll cycle in Kenya is generally managed on a monthly basis, with salaries paid on the last working day of each month.

Social Contributions and Taxes

Employer Contributions
National Social Security Fund 6.0%

(Capped at KES 200 – EUR 1.66 per month)

National Industrial Training Levy KES 50 (EUR 0.42)
Total 6.0% + KES 50 (EUR 0.42)
Employee Contributions
National Social Security Fund 6.0%

(Capped at KES 200 – EUR 1.66 per month)

National Hospital Insurance Fund KES 1,700 (EUR 14.1)
Total 6.0% + KES 1,700 (EUR 14.1)
Employee Income Tax
Up to KES 288,000 (EUR 2,390) per year 10.0%
Between KES 288,000 and KES 388,000

(EUR 2,390 – EUR 3,220)

From KES 388,000 (EUR 3,220) 30.0%


Working Hours and Overtime

  • Working hours in Kenya cannot exceed 52 hours per week and nine hours per day.
  • Overtime pay is compulsory if the working hours limit is exceeded. Overtime work cannot exceed four hours per day.
  • Overtime work is paid at a minimum rate of 150% of the regular salary.

Vacation Days

  • Employees in Kenya are entitled to at least 21 days of annual paid vacation after they complete six months of service.
  • Kenya celebrates 11 public holidays:
    • New Year’s Day: January 1st
    • Good Friday and Easter Monday: Between March and April (moveable)
    • Labor Day: May 1st
    • Madaraka Day: June 1st
    • Utamaduni Day: October 10th
    • Mashujaa Day: October 20th
    • Jamhuri Day: December 12th
    • Christmas Holiday: December 25th – 26th
    • Eid al-Fitr and Eid al-Adha: Varies according to the Islamic calendar (moveable)

Parental Leave and Sick Leave

  • Female employees in Kenya are entitled to three months of fully paid maternity leave. The employee must give at least seven days of notice to the employer before taking the leave.
  • New fathers are entitled to two weeks of fully paid paternity leave, provided they notify their employer at least seven days before the leave.
  • In the case of adoption, the same duration of maternity and paternity leaves can be taken, but the notice period for the employer must be at least 14 days instead of seven.
  • Employees in Kenya are entitled to two weeks of paid sick leave per year after their first two months of service. The first seven days of the leave are paid at the full salary rate, while pay during the following seven days is halved.

Notice Period

  • Employees in Kenya wishing to resign have to respect a minimum notice period of seven days. However, longer notice periods can be specified in employment contracts.

Further Useful Information

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.