Running payroll in Kenya means navigating KRA PAYE withholding filed via iTax, NSSF Tier 1 and Tier 2 contributions, Social Health Insurance Fund (SHIF) deductions under the Social Health Authority, NITA levy payments, Affordable Housing Levy remittances, and Work Injury Benefits Act (WIBA) compliance, all governed by the Income Tax Act, Employment Act 2007, and NSSF Act 2013, and remitted to the Kenya Revenue Authority by the 9th of each month. Africa Deployments Kenya manages every element of your Kenya payroll, accurately, on time, and in full statutory compliance.
Every payroll run in Kenya must account for KRA PAYE at the applicable progressive rate (10% to 35%), NSSF Tier 1 contributions at 6% of the first KES 9,000 of pensionable earnings (maximum KES 540 per party), NSSF Tier 2 at 6% of pensionable earnings between KES 9,000 and KES 108,000 (maximum KES 5,940 per party), SHIF deductions at 2.75% of gross salary (minimum KES 300 per month), NITA levy at KES 50 per employee, and Affordable Housing Levy at 1.5% each. Africa Deployments Kenya calculates and remits each obligation, on time, every time.
From agreed gross salary to compliant net pay, Africa Deployments Kenya handles all deductions, withholdings, and statutory contributions in Kenyan Shilling (KES), with full payslip generation for every employee each month and automatic application of all eligible KRA tax reliefs and deductions.
All PAYE, NSSF, SHIF, NITA levy, and Affordable Housing Levy remittances are filed directly with the Kenya Revenue Authority via the iTax platform and the Department of Social Protection by our team based in Kenya, via monthly P10 returns and annual P10A reconciliations.
Our payroll team operates from Kenya, not from a regional hub abroad. We know the KRA PAYE processes, iTax submission requirements, NSSF Tier 1 and Tier 2 filing deadlines, SHIF remittance rules, and P10 filing obligations from direct in-country experience, not documentation.
We handle the complete payroll calculation, from agreed gross salary through all statutory deductions to compliant net pay, with monthly payslips issued in the required format under the Employment Act 2007 and automatic application of eligible KRA tax reliefs.
Late P10 filings, missed KRA remittances, and PAYE calculation errors carry interest and financial penalties under the Tax Procedures Act. Africa Deployments Kenya's in-country payroll team ensures every KRA deadline is met and every calculation is correct.
For clients who also need an Employer of Record in Kenya, Africa Deployments Kenya offers fully integrated EOR and payroll, one contract, one contact, complete Employment Act 2007 and KRA compliance.
New employees can be KRA PAYE-registered, NSSF-enrolled, and included in payroll within 48 hours of engagement. Africa Deployments Kenya's entity is already KRA-active and registered with all relevant authorities, with no registration delays on your side.
Access your complete Kenya payroll data, including P10 contribution schedules, payslips, and statutory filings, through one dedicated account manager with full transparency over every payroll run.
Payroll in Kenya involves calculating gross-to-net salary for each employee, withholding PAYE at the applicable progressive KRA tax rate, and making mandatory statutory contributions including NSSF Tier 1 and Tier 2 contributions, SHIF deductions at 2.75% of gross salary, NITA levy at KES 50 per employee, and Affordable Housing Levy at 1.5% each. All PAYE and levy obligations must be remitted to the Kenya Revenue Authority via the iTax platform using a monthly P10 return by the 9th of the month following the pay period. Payslips must be issued to every employee each month under the Employment Act 2007.
PAYE (Pay-As-You-Earn) is Kenya’s system of withholding personal income tax from employee salaries at source, governed by the Income Tax Act and administered by the Kenya Revenue Authority. Employers must deduct PAYE monthly from each employee’s gross remuneration using the progressive KRA tax tables and remit the amount via a P10 return through iTax by the 9th of the following month. Effective July 2025, employers are also required to automatically apply all eligible tax reliefs and deductions when calculating PAYE. Africa Deployments Kenya calculates, withholds, and remits PAYE on your behalf.
Kenya’s personal income tax operates on a progressive scale under the Income Tax Act. For the 2024/2025 tax year, the monthly bands are: the first KES 24,000 taxed at 10%; KES 24,001 to KES 32,333 taxed at 25%; KES 32,334 to KES 500,000 taxed at 30%; KES 500,001 to KES 800,000 taxed at 32.5%; and above KES 800,000 taxed at 35%. A monthly personal relief of KES 2,400 applies to all resident employees. Africa Deployments Kenya applies the current KRA tax tables to every payroll run.
The National Social Security Fund (NSSF), governed by the NSSF Act No. 45 of 2013, provides retirement and social security coverage for employees in Kenya. Contributions are calculated on a tiered basis: Tier 1 applies a rate of 6% to pensionable earnings up to the Lower Earnings Limit of KES 9,000, giving a maximum Tier 1 contribution of KES 540 per party per month; Tier 2 applies a rate of 6% to pensionable earnings between KES 9,000 and the Upper Earnings Limit of KES 108,000, giving a maximum Tier 2 contribution of KES 5,940 per party per month. The maximum total NSSF contribution per party is therefore KES 6,480 per month. Africa Deployments Kenya manages NSSF calculation, deduction, and remittance for all employees.
The Social Health Authority (SHA) was established under the Social Health Insurance Act 2023, replacing the National Hospital Insurance Fund (NHIF). SHA administers the Social Health Insurance Fund (SHIF), to which employees contribute 2.75% of their gross monthly salary, subject to a minimum contribution of KES 300 per month. Employers deduct and remit SHIF contributions on behalf of employees each month. Africa Deployments Kenya manages SHA registration, monthly SHIF deductions, and remittance for every employee under the managed payroll arrangement.
The National Industrial Training Authority (NITA) levy is a statutory monthly contribution of KES 50 per employee, payable by all registered employers in Kenya under the Industrial Training Act. NITA levies fund workplace skills development and industrial training programmes. Failure to remit the NITA levy exposes the employer to penalties. Africa Deployments Kenya collects and remits the NITA levy as part of the full monthly payroll service for every employer operating in Kenya.
The Affordable Housing Levy (AHL), introduced under the Affordable Housing Act 2024, requires both the employer and the employee to each contribute 1.5% of the employee’s gross monthly salary to the Affordable Housing Fund. The employer deducts the employee’s 1.5% portion and remits both the employer and employee contributions to the Kenya Revenue Authority via iTax monthly, by the 9th of the following month. Africa Deployments Kenya calculates, deducts, and remits the full Affordable Housing Levy for every employee as part of the standard monthly payroll run.
The Work Injury Benefits Act 2007 (WIBA) requires all employers in Kenya to provide compensation for employees who suffer occupational injuries or diseases. While WIBA compensation itself is not a monthly payroll deduction in the same manner as PAYE or NSSF, employers must hold WIBA insurance through an approved insurer and ensure WIBA compliance is maintained. Africa Deployments Kenya manages WIBA insurance and compliance as part of the full managed payroll and EOR arrangement.
PAYE, NSSF, SHIF, NITA levy, and Affordable Housing Levy must all be remitted to the Kenya Revenue Authority via the iTax platform by the 9th of the month following the pay period. Late payment attracts interest and a penalty of 5% per month on the outstanding amount under the Tax Procedures Act. Africa Deployments Kenya ensures every P10 return and associated payment is filed and remitted before the applicable KRA deadline.
The P10 is the monthly employer PAYE return submitted to the Kenya Revenue Authority via iTax, declaring the total PAYE withheld from all employees during the pay period. It must be submitted and paid by the 9th of the following month. Africa Deployments Kenya prepares and submits the P10 return for every payroll run, reconciling all statutory deductions against the gross payroll before filing.
The P9A is the annual tax deduction card issued by the employer to each employee at year end, confirming total gross pay, PAYE deducted, and other statutory deductions for the tax year. The P10A is the annual PAYE reconciliation return submitted to KRA via iTax, reconciling cumulative monthly P10 declarations against the P9A certificates issued to employees. Africa Deployments Kenya manages the full P9A issuance and P10A reconciliation process at year end for all employees.
Payroll in Kenya is processed in Kenyan Shilling (KES). Foreign companies operating through an Employer of Record such as Africa Deployments Kenya have salaries paid in KES through the EOR’s Kenya bank account, ensuring full compliance with KRA requirements and Central Bank of Kenya foreign exchange regulations.
Yes. Under the Employment Act 2007, employers in Kenya are legally required to issue a payslip to every employee on each payday. The payslip must detail gross salary, all statutory deductions including PAYE, NSSF, SHIF, NITA levy, and Affordable Housing Levy, and the net salary paid. Failure to issue compliant payslips exposes the employer to enforcement action under the Employment Act 2007.
Yes. Africa Deployments Kenya manages Kenya payroll through its own registered legal entity, Bergmont Employer of Record Limited (BRS No. PVT-BEUE3LMJ), incorporated under the Companies Act 2015 and registered with KRA as an employer. Our payroll team is based in-country, KRA-registered, and directly accountable to Kenyan authorities. We are not a remote service or a partner-managed operation.
Payroll management in Kenya involves calculating and processing employee salaries, withholding PAYE, and remitting statutory contributions to the Kenya Revenue Authority, but does not change the legal employment relationship. An Employer of Record (EOR) goes further: the EOR becomes the legal employer in Kenya, taking full responsibility for Employment Act 2007 and Labour Relations Act 2007-compliant employment contracts, statutory compliance, and all employment liability. Africa Deployments Kenya offers both as integrated or standalone services.
For new employees, payroll setup can be completed within 48 hours of engagement with Africa Deployments Kenya, because our legal entity is already registered with KRA, NSSF, and SHA and fully operational. There is no entity registration period, no authority approval wait, and no setup delays. New employees are KRA PAYE-registered and included in the next payroll cycle immediately.
A foreign company without a registered entity in Kenya cannot legally employ staff or run KRA-compliant payroll in Kenya. To pay employees compliantly, a foreign company must either establish its own Kenyan entity via BRS and complete KRA, NSSF, and SHA registration, or engage an Employer of Record such as Africa Deployments Kenya. The EOR employs the staff through its own registered entity and runs fully compliant payroll on the client’s behalf.
Kenya’s minimum wage is set under the Regulation of Wages (General) Order, reviewed annually and adjusted by gazette notice. Following the November 2024 General Order amendment, minimum wages vary by occupation and location. The general minimum monthly wage for unskilled workers in Nairobi and other major urban centres is approximately KES 16,113.75, while rates in other regions and for specific occupational categories such as stockmen and agricultural workers are lower. Africa Deployments Kenya ensures all payroll runs comply with the current minimum wage applicable to each employee’s role and location.
There is no statutory 13th-month salary requirement under Kenyan law. However, individual employment contracts, company policies, or collective bargaining agreements may provide for annual bonuses or performance-related payments. Where a bonus is contractual, it forms part of the employee’s remuneration and is subject to PAYE withholding. Effective July 2025, gratuity payouts are fully exempt from income tax in Kenya, whether from public or private sector employers. Africa Deployments Kenya manages all contractual and discretionary bonus and gratuity payroll obligations.
Expatriate employees working in Kenya are generally subject to KRA PAYE on Kenya-sourced income under the Income Tax Act. NSSF obligations may vary depending on whether a bilateral social security agreement applies. Kenya has tax treaties with numerous countries that may affect the treatment of expatriate remuneration. Effective July 2025, the daily subsistence allowance threshold was raised to KES 10,000, with amounts above this subject to PAYE. Africa Deployments Kenya advises on and manages the specific payroll obligations applicable to each expatriate employee’s situation.
Under the Employment Act 2007, employees in Kenya are entitled to a minimum of 21 working days of paid annual leave per 12-month leave cycle, accruing at 1.75 days per month of continuous service. Annual leave must be granted within 12 months of the end of the leave cycle. Unused annual leave at termination must be paid out in full as part of the final payroll settlement. Africa Deployments Kenya calculates and manages annual leave accrual and final payroll settlement as standard.
Under the Employment Act 2007, female employees in Kenya are entitled to three months of fully paid maternity leave, with the employer bearing the full salary cost throughout. Male employees are entitled to two weeks (14 calendar days) of fully paid paternity leave. Employees who are primary adoptive caregivers are entitled to one month of fully paid pre-adoptive leave under Kenyan employment law. Africa Deployments Kenya processes all maternity, paternity, and adoptive leave payroll as part of the full managed payroll service.
Under the Employment Act 2007, employees in Kenya who have been employed for more than two months are entitled to sick leave with full pay for up to 30 days per leave cycle, and a further 15 days at half pay. All sick leave requires a valid medical certificate issued by a recognised medical practitioner. Africa Deployments Kenya manages sick leave administration, payslip adjustments, and all Employment Act 2007 sick leave compliance obligations.
The Employment Act 2007 sets the maximum ordinary working hours at 52 hours per week for employees doing work involving physical effort, and 45 hours per week for office and non-manual workers. Overtime must be agreed in advance and compensated at a minimum of one and a half times the ordinary hourly rate, or double time for work on rest days and public holidays. Africa Deployments Kenya manages overtime calculation, payslip reporting, and Employment Act 2007 working time compliance for all employees.
Gratuity is a discretionary or contractual end-of-service payment made by employers in Kenya, often calculated as a multiple of monthly salary per year of service. Effective July 1, 2025, all gratuity payouts in Kenya, whether from public or private sector employers, are completely exempt from income tax under Kenyan law. This makes gratuity an attractive component of total compensation packages. Africa Deployments Kenya calculates and processes all gratuity obligations as part of the final payroll settlement.
Under the Employment Act 2007, employers in Kenya may place new employees on a probationary period of up to six months. With the employee’s written consent, probation may be extended once for a further six months, giving a maximum total probationary period of twelve months. During probation, shorter notice periods may apply as specified in the employment contract. All statutory payroll obligations, including PAYE, NSSF, SHIF, NITA levy, and Affordable Housing Levy, apply from the first day of employment, including during the probationary period.
Kenya observes 13 statutory public holidays under the Public Holidays Act (Cap 110). These include New Year’s Day (1 January), Good Friday, Easter Monday, Labour Day (1 May), Madaraka Day (1 June), Huduma Day (10 October), Mashujaa Day (20 October), Utamaduni Day (26 October), Jamhuri Day (12 December), Christmas Day (25 December), Boxing Day (26 December), Idd-ul-Fitr, and Idd-ul-Adha. Employees are entitled to paid leave on all public holidays, and work performed on a public holiday must be compensated at double the ordinary hourly rate. Africa Deployments Kenya manages public holiday entitlements and payroll treatment as part of the full managed payroll service.
Beyond statutory obligations, employers in Kenya may offer supplementary benefits including private medical insurance, pension fund top-ups above the NSSF minimum, group life cover, performance bonuses, and transport or housing allowances. Benefit-in-kind payments such as company car provision are subject to PAYE withholding at a benefit value of 2% of the vehicle’s original purchase price per year. Africa Deployments Kenya manages the payroll treatment of all statutory and supplementary benefits for employees under the managed payroll arrangement.
Yes. The Data Protection Act 2019 governs the collection, processing, storage, and transfer of personal data in Kenya, including employee payroll data such as salary records, bank account details, identification documents, and tax information. As the registered payroll provider and legal employer in Kenya, Africa Deployments Kenya acts as a data processor and maintains full compliance with the Data Protection Act 2019, including appropriate data processing agreements with client companies and adherence to the regulations of the Office of the Data Protection Commissioner.
Africa Deployments Kenya is a registered legal entity incorporated with the BRS in Kenya (No. PVT-BEUE3LMJ) and registered with KRA as an employer, not a remote service or an agent. Our in-country payroll team manages every statutory obligation: PAYE, NSSF Tier 1 and Tier 2, SHIF deductions, NITA levy, Affordable Housing Levy, WIBA compliance, P10 monthly filing via iTax, P10A annual reconciliation, and P9A certificate issuance. Clients benefit from full gross-to-net accuracy in KES, zero KRA penalty risk, and a dedicated payroll contact based in Kenya, with the option to integrate payroll with our fully managed EOR service.
With Africa Deployments Kenya, you have one licensed Employer of Record and payroll provider. One registered legal entity in Kenya. Total workforce compliance from day one.
Legal Entity Name:
Bergmont Employer of Record Limited
Registered Office Address:
Mercantile House, Koinange Street 2nd floor, Office 202, P.O Box 4979-00200, Nairobi, Kenya
BRS Registration Number: PVT-BEUE3LMJ
KRA PIN: P052386396W
Save significantly on setup costs compared to establishing your own legal entity in Kenya. No BRS registration fees, no KRA setup complexity, and no in-house payroll compliance infrastructure to build.
Streamline your Kenya HR and payroll operations with unified standard operating procedures, one point of contact, and consistent KRA-compliant processes across your entire Kenya workforce.
Your dedicated account manager ensures smooth payroll operations and is always available for KRA queries, P10 questions, NSSF and SHIF updates, and any Kenya-specific payroll guidance you need.
Manage employees across Kenya and multiple African countries from a single HR and payroll provider, with unified reporting and consistent compliance oversight across all markets.
Manage your entire Kenya workforce from a single point of contact, with consistent payroll processes, KRA filings, and compliance reporting across the continent.
Seamlessly scale from 1 to 1,000+ employees in Kenya without the complexity of managing multiple KRA employer registrations, payroll systems, or compliance obligations.
Chief Human Resources Officer,
GetMyBoat
“Working with Africa Deployments allowed us to quickly hire top talent across East Africa without establishing separate entities. Their service is absolutely invaluable.”
Chief Operations Officer EMEA,
Global Finance Partners
Head of Legal,
Ergos Mining
