What is an Employer of Record in Kenya?
An Employer of Record (EOR) in Kenya is a registered Kenyan company that becomes the legal employer of your local workforce. It issues compliant employment contracts, manages payroll, and fulfils all statutory obligations under the Employment Act, Cap 226 — including PAYE, NSSF, SHIF, and the Affordable Housing Levy — while you retain complete operational control of your employees.
When you engage Two Max Group as your EOR partner, we assume full legal employer responsibility in Kenya. Our payroll team computes monthly gross-to-net salaries, files mandatory P10 returns with the Kenya Revenue Authority (KRA) before the 9th-of-month deadline, and ensures every requirement under Cap 226 is met — from probation terms to termination procedures.
For multinationals and foreign companies, this is the fastest legal route to hiring in Kenya. Registering your own entity takes 3–8 weeks. With Two Max Group, your people are active in 48 hours.
What Two Max Group manages as your Kenya EOR
- Employment contracts — issued under Two Max Group's corporate identity, fully compliant with Cap 226 Section 9, covering probation, notice, leave, and severance
- PAYE computation and KRA iTax filing — submitted before the 9th-of-month statutory deadline, zero late filings in 14+ years
- NSSF Tier I & II — 6% employer + 6% employee contributions calculated and remitted to the NSSF monthly
- SHIF (Social Health Insurance) — 2.75% of gross salary deducted and remitted to the Social Health Authority (SHA)
- Affordable Housing Levy — 1.5% employer + 1.5% employee contributions filed via KRA iTax
- Leave, disciplinary, and offboarding — managed by our IHRM-certified HR professionals
- Work permit support — Class G Work Permits and Special Passes for expatriates integrated within EOR scope
Who Needs an Employer of Record in Kenya?
Any foreign company that wants to employ people in Kenya without registering a local subsidiary is the primary candidate. This ranges from a US technology firm deploying its first Nairobi-based engineer, to a European multinational building a 50-person East Africa hub, to international development agencies managing donor-funded project teams.
Common EOR Kenya use cases
- Foreign companies with no Kenyan entity — hire compliantly without the 3–8 week entity registration process
- Market entry validation — test Kenya's commercial viability before committing capital to subsidiary incorporation
- International NGOs and donor agencies — meet USAID, FCDO, EU, and UN payroll reporting requirements with audit-ready documentation
- Technology companies expanding from EMEA — access Kenya's deep software engineering and fintech talent pool immediately
- Companies mid-registration — bridge the gap between entity approval and when you need staff on the ground
- Short-term or project-based teams — avoid the overhead of a permanent entity for fixed-duration deployments
Kenya is consistently ranked among East Africa's most attractive investment destinations. Two Max Group's EOR framework lets you capitalize on that — without compliance delays or regulatory exposure.
How We Deploy Your Kenya Team in 48 Hours
Five steps separate your organisation from a fully compliant Kenya workforce. Two Max Group executes every step on your behalf. Here is exactly what happens from the moment you confirm engagement to the day your employees are operational.
Engagement & Scoping
Contracts & Statutory Registration
Payroll Activated
Payroll & Compliance Execution
Full HR & Compliance Management
What's Included in Your Kenya EOR Retainer
One fixed monthly retainer. No hidden charges. No gaps in coverage. All 12 statutory and HR obligations managed end to end.
Employment Contracts
PAYE & KRA iTax Filing
NSSF Contributions
SHIF & Housing Levy
Payroll Disbursement & Payslips
Leave Management
Disciplinary & Grievance
Work Permit Integration
Offboarding & P9 Certificates
Multi-Currency Funding
Finance Act Compliance Updates
KRA Audit Documentation
Kenya Payroll Cost Calculator — Finance Act 2025/26
Calculate your full employment cost in Kenya instantly. Enter the gross monthly salary and any taxable allowances — PAYE, NSSF, SHIF, and the Affordable Housing Levy are computed automatically using current statutory rates.
Transport, housing, or other taxable allowances. Added to gross for PAYE computation.
Team total shown in the summary. Each employee calculated at the same gross.
*Estimates based on Kenya statutory rates under the Finance Act 2025/26. For indicative purposes only. Contact Two Max Group for a binding EOR cost proposal.
EOR vs. Registering Your Own Entity in Kenya
Both approaches establish a legally compliant Kenya workforce. The critical differences are speed, upfront cost, and who carries the compliance liability. Here is an objective comparison.
| Factor | EOR — Two Max Group | Own Kenya Entity |
|---|---|---|
| Time to first hire | 48 hours from engagement | 3–8 weeks (BRS, KRA, NSSF, SHIF) |
| Entity required | No — use Two Max Group's | Yes — mandatory before hiring |
| Registration cost | Zero | KES 30K–100K+ (legal, BRS, KRA, AGPO) |
| Monthly admin | Zero — fully managed | In-house HR team or outsourced payroll |
| Employment liability | Borne by Two Max Group | Borne entirely by your entity |
| PAYE compliance | Managed — zero late filings on record | Your liability — 5% + 1%/month penalty for late filing |
| Finance Act updates | Applied on gazette date | Your responsibility to monitor and implement |
| Minimum wage tracking | Monitored automatically | Manual monitoring required |
| Scalability | Add or remove employees any time | HR capacity and payroll system must scale |
| Work permits | Integrated — Class G, Special Pass | Separate, independent process |
| Exit flexibility | End engagement — no entity wind-down | Full KRA deregistration, NSSF & SHIF clearance required |
Choose EOR when speed and flexibility matter
Get your people on the ground in 48 hours — not 8 weeks. Zero capital outlay. Employment Act liability transferred to Two Max Group. Scale your Kenya team up, down, or exit entirely without complex legal dissolution.
Start EOR — 48hr →Choose your own entity for permanent long-term presence
Once your Kenya or East Africa operations are consistently profitable, a registered subsidiary provides permanence, commercial credibility, and lower per-head cost at scale. Two Max Group handles the full Company Registration in Kenya.
Explore Entity Registration →Kenya EOR — Industries We Serve
Our compliance infrastructure is built to accommodate the distinct HR regulations and employment dynamics of each major sector operating in Kenya.
Foreign Companies Entering Kenya
Technology & Digital Companies
International NGOs & Donor Agencies
Banks & Regulated Institutions
Healthcare & Life Sciences
Consulting & Advisory Firms
Your Kenya team — compliant in 48 hours.
Tell us who you need, their role, and your start date. Two Max Group handles everything from contract to payroll to statutory compliance.
Employer of Record Kenya — Frequently Asked Questions
Precise answers to the questions senior executives ask before engaging Two Max Group — with full regulatory detail.
An Employer of Record in Kenya is a locally registered company that becomes the legal employer of your Kenyan workforce on your behalf. Two Max Group issues employment contracts under our corporate identity, executes monthly payroll, manages all statutory deductions (PAYE, NSSF, SHIF, Housing Levy), and fulfils every obligation under the Employment Act, Cap 226. You retain complete operational control — you direct the work, we carry the compliance.
Yes — through an Employer of Record. A foreign company cannot directly employ a Kenya resident without completing the local entity registration process, which typically takes 3–8 weeks. By contracting Two Max Group as your EOR, the employee is legally employed by our registered Kenyan entity while you direct their daily work. You gain a fully compliant Kenya workforce with zero entity requirements and zero registration costs.
48 hours. Once engagement is confirmed, Two Max Group drafts compliant employment contracts, registers the employee for KRA PAYE, NSSF, SHIF, and the Affordable Housing Levy, and activates the first payroll cycle — all within 48 hours. Compare this to 3–8 weeks for independent entity registration, plus additional time to set up payroll infrastructure.
Kenya employees are subject to four mandatory deductions and contributions under the Finance Act 2025/26: (1) PAYE income tax — progressive bands of 10%–35%, filed via KRA iTax P10 before the 9th of each month, with personal relief of KES 2,400/month; (2) NSSF — 6% employee deduction + 6% employer contribution (max KES 6,480 each, pensionable pay capped at KES 108,000); (3) SHIF (Social Health Insurance Fund) — 2.75% of gross salary, uncapped, remitted to the Social Health Authority; (4) Affordable Housing Levy — 1.5% employee + 1.5% employer, both filed via KRA iTax. Two Max Group has never submitted a late statutory return.
The total employer cost of hiring in Kenya is approximately 8.5% above the gross salary. This comprises: NSSF employer contribution of 6% (capped at KES 6,480/month) plus the Affordable Housing Levy employer contribution of 1.5% of gross pay. PAYE, employee-side NSSF (6%), SHIF (2.75%), and the employee Housing Levy (1.5%) are all deducted from the employee's gross salary — they do not increase your cost. Use our payroll calculator above for a precise breakdown at any salary level.
EOR (Employer of Record) — Two Max Group becomes the sole legal employer. No Kenya entity required on your side. This is the correct model when you have no registered subsidiary. PEO (Professional Employer Organisation) — Two Max Group co-employs alongside your existing registered Kenyan entity, and we outsource HR, payroll, and compliance administration. If you have no Kenya company: use EOR. If you have a registered entity and want to outsource HR operations: use PEO.
Under Employment Act Cap 226, Section 9, written employment contracts in Kenya must specify: the employer's name and address, the employee's name and role, the place of work, the date of commencement, the remuneration and payment method, working hours, leave entitlements, notice period (minimum 28 days), and details of any probationary period (maximum 6 months, extendable once). All Two Max Group contracts comply fully with these requirements and are available in both English and Kiswahili.
Work permit management is fully integrated within the EOR service. Our specialists manage: Class G Work Permits for employees on permanent contracts, Special Passes for short-term assignments under 3 months, and Dependent Passes for family members — all issued with timelines aligned to the employment contract start date. Work permit services are delivered through our dedicated Kenya Work Permit team.
Two Max Group manages the full transition with zero disruption to employees. The process includes: entity registration through our Company Registration service if required; migration of all KRA payroll filing history and PAYE records; legal novation of employment contracts from Two Max Group to your new entity; and transfer of NSSF, SHIF, and Housing Levy enrolments. Employees retain full continuity of statutory benefits, and their service years are preserved for severance calculation purposes.
Your Kenya team —
compliant and operational in 48 hours.
One engagement. Every Kenya statutory obligation managed. Zero penalty exposure. 14+ years of flawless compliance and zero late filings — serving clients across 47 Kenyan counties.