Employer of Record Kenya — A Compliance Guide for Foreign Companies

Kenya’s employer compliance landscape has grown significantly more complex over the past three years. The NSSF Act 2013 tiered contributions, the Social Health Authority (SHA) replacing NHIF, the Affordable Housing Levy introduced in 2024 and the ongoing KRA digitisation of PAYE through iTax have created a multi-authority payroll obligation that demands precision each month. For a foreign company entering the Kenyan market, understanding these obligations – and finding the fastest route to compliance from the first hire – is essential. This guide covers what is required and how an EOR absorbs the compliance burden.

Quick facts: Kenya EOR compliance at a glance

• Employers must register with the KRA for PAYE before the first salary payment
• NSSF tiered contributions apply under the NSSF Act 2013
• SHA contributions are 2.75% of gross salary (employee only) as of 2026
• NITA levy is KES 50 per employee per month
• Affordable Housing Levy is 1.5% employer + 1.5% employee of gross salary
• KRA PAYE is remitted monthly by the 9th of the following month via iTax

Kenya’s Core Employer Compliance Obligations

Before making the first salary payment in Kenya, an employer must register with the KRA as a PAYE employer, register with NSSF as a contributing employer, enrol employees with the SHA, register for the NITA levy and comply with the Affordable Housing Levy obligations. Employment contracts must comply with the Employment Act 2007 – specifically the written particulars requirement under Section 10, which mandates that every employee receives a written statement of terms within two months of commencing employment. Bergmont Employer of Record Limited (BRS: PVT-BEUE3LMJ | KRA PIN: P052386396W) holds all of these registrations as a standing employer – when a foreign client engages our EOR service, those obligations transfer from day one.

Kenya Employer Compliance: Key Obligations

KRA PAYE, NSSF and SHA: The Core Payroll Obligations

PAYE in Kenya is administered by the Kenya Revenue Authority (KRA) through the iTax platform. The monthly rate schedule runs from 10% (on income from KES 24,001 to KES 32,333 per month) through four bands to 35% (on income above KES 800,000 per month). Monthly PAYE is remitted by the 9th of the following month. Employers must also submit an annual PAYE return (P9) for each employee by 28 February of the following year.

NSSF contributions under the NSSF Act 2013 operate on a tiered basis: Tier I contributions apply up to a lower earnings limit and Tier II contributions apply above that up to an upper earnings limit. The exact rates and limits have been subject to legal challenges, but the employer and employee contribution obligation remains in place. NSSF contributions are remitted by the 9th of the following month.

SHA (Social Health Authority) replaced NHIF in 2024. The SHA contribution rate is 2.75% of gross monthly salary (employee contribution). Employers deduct and remit SHA contributions monthly.

Why Companies Choose Africa Deployments Kenya for EOR Compliance

• All KRA, NSSF, SHA and NITA registrations held: No client registration queue – Bergmont Employer of Record Limited is already enrolled with every statutory body.
• Monthly KRA iTax filings by the 9th: PAYE, AHL and all related deductions filed and remitted on time, every month.
• Employment Act 2007 contracts from day one: Written particulars provided to every employee at onboarding in line with Section 10.
• WIBA insurance arranged: Work injury benefits insurance coordinated as part of the onboarding process.
• ELRC-ready documentation: All employment records maintained to Employment and Labour Relations Court evidentiary standards.
• Work permit coordination: Class G special pass and Class D employment permit applications managed for foreign national hires.

Frequently Asked Questions

What is the KRA iTax platform?

iTax is the Kenya Revenue Authority’s integrated tax management system. All PAYE declarations, AHL remittances, P9 returns and employer registration are managed through iTax. Bergmont Employer of Record Limited uses iTax for all client PAYE filings.

How has the NSSF Act 2013 changed employer NSSF contributions?

The NSSF Act 2013 introduced a tiered contribution structure that significantly increased NSSF contributions compared to the previous flat rate. Legal challenges to the Act have created some uncertainty around the Tier II rates. Africa Deployments Kenya applies the contributions in line with current KRA and NSSF guidance and monitors developments as they occur.

What is WIBA in Kenya?

WIBA (Work Injury Benefits Act 2007) requires all Kenyan employers to insure against liability for work-related injuries and diseases. Employers must either take out WIBA insurance through an approved insurer or demonstrate adequate internal resources to meet claims. Africa Deployments Kenya coordinates WIBA insurance as part of its EOR onboarding process.

What are the PAYE deadlines in Kenya?

Monthly PAYE is remitted via KRA iTax by the 9th of the following month. Annual P9 returns for all employees are due by 28 February of the following year. Africa Deployments Kenya meets both deadlines as a matter of standard payroll practice.

About Africa Deployments Kenya

Registered Company Name: Bergmont Employer of Record Limited

Address: Mercantile House, Koinange Street 2nd floor, Office 202, P.O Box 4979-00200, Nairobi, Kenya

BRS: PVT-BEUE3LMJ | KRA PIN: P052386396W

Website: kenyadeployments.com

Kenya’s employer compliance environment has multiple authorities, tight monthly deadlines and a legal framework that has been actively evolving. Bergmont Employer of Record Limited absorbs the entire compliance cycle – KRA PAYE, NSSF, SHA, NITA, AHL – so foreign companies can hire in Kenya without managing those obligations themselves.

Reviewed by: Africa Deployments Compliance Team