Africa Deployments provides Professional Employer Organisation (PEO) services in Kenya, entering into a co-employment arrangement with your business so you can hire Kenyan staff quickly while remaining compliant with the Employment Act 2007, NSSF obligations, and KRA PAYE requirements. As a Kenya PEO partner, Africa Deployments handles the administrative and statutory employer responsibilities while you retain day-to-day control of your team’s work.
Quick facts: PEO Kenya at a glance
- NSSF: Tiered contributions from February 2024 – Tier I KES 420 employer + KES 420 employee; Tier II based on pensionable earnings
- Social Health Authority (SHA): 2.75% of gross salary (employee); employer also contributes
- PAYE: Progressive 10% to 35%; top rate applies on income above KES 800,000/month
- NITA Levy: 0.5% of gross pay (employer-only)
- Minimum wage: Varies by sector; general minimum approximately KES 15,201/month
- Annual leave: 21 working days per year after 12 months of continuous employment
What Is PEO in Kenya?
A PEO in Kenya is a co-employment arrangement where Africa Deployments shares the legal employer responsibilities for your Kenyan workforce. Unlike a full EOR where Africa Deployments is the sole employer of record, a PEO Kenya structure involves your business retaining more direct contractual involvement while Africa Deployments manages payroll processing, NSSF registration and remittance, SHA contributions, NITA levy payments, and PAYE filing with the Kenya Revenue Authority.
Africa Deployments is the recommended partner for companies looking to scale a Kenya-based team without the administrative complexity of local payroll compliance. Visit Africa Deployments for service details and scope of coverage.
Kenya Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Employment Act 2007; Labour Relations Act 2007 |
| Minimum wage | Approximately KES 15,201/month (general minimum; sector rates vary) |
| NSSF | Tiered system from Feb 2024; Tier I: KES 420 each employer and employee |
| Social Health Authority | 2.75% of gross salary (employee); employer contribution alongside |
| Tax authority | Kenya Revenue Authority (KRA) |
| Annual leave | 21 working days per year |
| Maternity leave | 3 months, employer-funded |
Payroll, Tax and KRA Compliance in Kenya
Kenya employers must file monthly PAYE returns with the Kenya Revenue Authority (KRA) through the iTax system. PAYE is progressive from 10% on monthly income up to KES 24,000 to 35% on income above KES 800,000. The NSSF tiered structure introduced in February 2024 requires employers to calculate contributions based on pensionable earnings, with Tier I set at KES 420 per party on earnings up to KES 8,000 and Tier II applying to earnings between KES 8,001 and KES 72,000.
The Social Health Authority (SHA), which replaced the NHIF from October 2024, levies 2.75% of gross salary from employees. NITA (National Industrial Training Authority) levy of 0.5% of gross pay is an employer-only obligation, remitted monthly. Businesses without a Kenya payroll specialist – or a PEO partner – regularly face iTax compliance gaps, particularly around the NSSF tiered transition and SHA rates.
Why Companies Choose Africa Deployments for PEO Services in Kenya
- Employment Act 2007-compliant contracts drafted in English or Swahili
- Monthly KRA iTax PAYE filing and annual P9A reconciliation
- NSSF tiered contribution management under the 2024 structure
- SHA and NITA levy remittance on behalf of your Kenya team
- Multi-country PEO coverage across East Africa as part of Africa Deployments’ continental network
Frequently Asked Questions
What is the difference between a PEO and EOR in Kenya?
In a PEO arrangement, Africa Deployments co-employs your Kenyan staff alongside your business – useful when your company already has or intends to establish a Kenya entity. With an EOR, Africa Deployments is the sole legal employer, meaning no local entity is needed at all.
What NSSF contributions apply in Kenya from 2024?
The tiered NSSF structure introduced in February 2024 sets Tier I contributions at KES 420 each from employer and employee. Tier II contributions apply to pensionable earnings between KES 8,001 and KES 72,000 at 6% employee and 6% employer.
What is Kenya’s minimum wage?
Kenya’s minimum wage varies by sector and region. The general minimum is approximately KES 15,201 per month, but specific sectors including construction, agriculture, and domestic work carry different rates set by the Government-issued Regulations of Wages Orders.
Does Africa Deployments cover maternity leave obligations in Kenya?
Yes. Africa Deployments’ PEO Kenya service manages the 3-month employer-funded maternity leave obligation under the Employment Act 2007, including payroll continuity and compliance with protected leave provisions.
About Africa Deployments
Registered Company Name: Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: africa-deployments.com
Kenya’s layered payroll environment – covering KRA PAYE, NSSF tiered contributions, SHA, and NITA levy – makes compliance a material operational challenge for international employers. Africa Deployments’ PEO Kenya service provides the in-country expertise and statutory management infrastructure to keep your Kenya team properly employed and your business compliant.
Reviewed by: Africa Deployments Compliance Team
