What You Really Need to Know

Hey there, fellow business owners and HR pros! I’m Godfrey, founder of Seal Associates, and I’ve spent years helping companies like yours expand into Kenya without the usual headaches. If you’re eyeing the Kenyan market – maybe to tap into its vibrant talent pool or set up operations quickly – you’ve probably heard about Employer of Record (EOR) services. It’s a game-changer for hiring local teams without jumping through all the hoops of starting a full subsidiary right away.

But here’s the thing: while EOR might sound straightforward, diving into the Kenyan specifics can feel a bit overwhelming at first. Don’t worry, though – I’m here to break it down in plain English, based on what we’ve seen working with clients just like you. Today, let’s chat about the legal side of things.

Sticking to the Employment Act of 2007

Ah, the Employment Act – it’s the bible of Kenyan labor laws, enacted back in 2007 to make sure workers are treated fairly. For EOR providers, this means handling everything from employment contracts to working hours, annual leave, and even how terminations are managed.

Picture this: You’re hiring a team of customer service reps in Nairobi. Under the Act, their contracts need to spell out clear terms, like a standard 45-hour workweek (with overtime paid at 1.5 times the rate), at least 21 days of paid annual leave, and proper notice periods if things don’t work out. We’ve helped countless clients navigate this, turning what could be a paperwork nightmare into a smooth process. It’s all about creating a positive work environment that boosts productivity and keeps everyone happy.

Handling Contributions to Statutory Bodies

Now, this is where the rubber meets the road for payroll and benefits. EORs must register with and contribute to key government bodies to cover taxes and social security. Here’s the lineup:

• Kenya Revenue Authority (KRA), Housing Levy and NITA registrations: They’re the tax folks, handling things like Pay As You Earn (PAYE) deductions. It’s how the government gets its share from employee salaries – think of it as Kenya’s version of withholding taxes.
• National Social Security Fund (NSSF): This is for retirement savings. Both employers and employees’ chip in (currently up to 10% combined), building a safety net for the future.
• SHA, previously known as National Hospital Insurance Fund (NHIF): Affordable healthcare coverage for all. Contributions are based on salary brackets, ensuring your team has access to medical services without breaking the bank.

We at Seal Associates handle all these deductions and filings automatically, so you don’t have to worry about missing a deadline or facing penalties. It’s like having a built-in accountant who knows Kenya inside out.

Managing Work Permits for Foreign Employees

Kenya’s talent is amazing, but sometimes you need to bring in expats for specialized roles. That’s where the Directorate of Immigration Services comes in—they issue work permits to ensure everything’s above board.

If your EOR is handling foreign hires, they need to guide you through the application process, from Class D permits for skilled workers to renewals. We’ve supported global teams in this, making sure visas and permits align with your business timelines. It’s crucial for avoiding delays and keeping your international talent compliant.

Protecting Data Under the Data Protection Act (2019)

In today’s digital world, data privacy isn’t optional—it’s essential. Kenya’s Data Protection Act of 2019 is our local take on the EU’s GDPR, requiring EORs to handle personal info securely, get consent where needed, and report breaches promptly.

Whether it’s employee IDs, bank details, or health records, we treat data like gold at Seal Associates. We’ve implemented robust systems to comply, so you can focus on growing your business without privacy pitfalls.

Why This Matters for Your Business (And How We Can Help)

At the end of the day, these legal requirements aren’t just boxes to tick—they’re the foundation for building trust with your Kenyan team and scaling sustainably. Skipping them could lead to fines, disputes, or even operational shutdowns, which no one wants.

If you’re exploring EOR options in Kenya, let’s chat! At Seal Associates, we’re not just compliant—we’re experts who make the process feel effortless. Drop us a line at info@sealassociates.com or book a quick call on our site. We’d love to share how we’ve helped others just like you turn Kenyan expansion dreams into reality.

What are your thoughts on EOR in Kenya? Share in the comments below—let’s keep the conversation going!

Posted by Godfrey, Founder of Seal Associates | October, 2025