Kenya has a market-based economy. Located on the Indian Ocean coastline, Kenya opens the door to the eastern Africa Market for businesses, making it a hub of economic, commercial, financial, and logistics activities in East Africa. The country has a development programme named “Vision 2030” from 2008 to 2030. Under this, the Kenyan government has been making continuous efforts to improve the country’s economic status. Major Industries in Kenya include agriculture, manufacturing, tourism, financial services, mining, etc.
Accounting and Finance, Human Resource Management, Business Administration, Marketing, Material procurement and management, Law, Education, Medicine, and Architecture
Some top local universities in Kenya are:
Average Salary of some common jobs in Kenya:
|Job Title||Average Monthly Salary (in KES)||Average Monthly Salary (in USD)|
|Business Development Manager||236,000||1,668|
In Kenya, employers usually follow a monthly payroll cycle and make payment at the end of the month.
The minimum wage in Kenya is KES 15,120 per month.
Normal working hours shall not be more than 52 hours in week, distributed evenly over six days of the week.
Employers are liable to pay overtime to their employees as following:
There is no provision for paying 13th month pay in the country. It solely depends upon employers if they wish to pay any bonus to employees.
Employees are entitled to the following benefits:
Employers must retain income tax and social security contributions from the salaries of employees. In Kenya, the PAYE system is used to calculate these deductions. Every month, employer has to submit the deducted money to the KRA (Kenya Revenue Authority)
|Employer Contributions||Employer Payroll Tax|
|National Social Security Fund||KSH 200 per month|
|National Industrial Training Levy (NITA)||50 KES per employee|
|Employee Contributions||Employee Payroll Tax|
|National Social Security Fund (Pension)||KSH 200 per month|
|National Hospital Insurance Fund (NHIF) ( Applicable on employees earning above 100,000 KES / month. From 1st Jan, 2022 tax relief will be applicable at 15% of the amount contributed)||1700 KES|
|Annual Taxable Income (KES)||Tax Rate (%)|
Value Added Tax (VAT) is applicable in Kenya, and it ranges between 0% – 16% depending on the nature of the goods.
As per Employment Act, employer needs to follow fair termination procedure as per the law or as per the contract signed between employee and employer. Employer has to give notice in writing and give a valid reason for termination.
The Notice period for Kenyan employees will be up to 28 days.
Yes, in case of redundancy, the employer has to pay a severance of not less than 15 days’ pay for each year completed of service.
For foreign nationals, to work legally in the country, there are some strict immigration rules. Under that, it is mandatory to obtain the following documents to work in Kenya.
|Overtime Working Hours||Compensation|
|>52 hours||1.5 times of normal hourly rate|
|Employee working on rest day or public holidays||2 times of normal hourly rate|