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Mercans offers complete payroll, PEO and HR services in Kenya

Mercans is a company that provides comprehensive payroll, professional employer organization (PEO), and human resources (HR) services in Kenya. These services help companies manage their payroll, taxes, and HR responsibilities efficiently, allowing them to focus on their core business operations and achieve their goals in a compliant and cost-effective manner. Doing Business in Kenya

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Doing Business in Kenya

Doing business in Kenya involves understanding the country's laws and regulations, as well as the cultural and business practices, in order to succeed in the market. This may include obtaining the necessary permits and licenses, registering a company, and complying with tax and labor laws, as well as developing a strategy for success in a competitive and dynamic business environment.

Entity Registration and Incorporation Requirements

A business must meet certain legal requirements to register and incorporate as an entity in Kenya.Incorporation typically involves choosing a business name, registering with the relevant government authorities, obtaining licenses and permits, and filing the appropriate legal documents.Getting a business registered and incorporated in Kenya requires knowledge of the specific requirements and procedures.

Banking

Banking Hours: 9:00 am to 3:00 pm from Monday to Friday

Working Week

The standard working week is from Monday to Friday from 8:00 am - 5:00 pm

Labor Law

The labor law in Kenya governs the rights and obligations of employers and employees in the workplace. It covers areas such as minimum wage, working hours, leave entitlements, health and safety, and discrimination, among others. In order to protect their rights and interests, employers and employees must be familiar with Kenyan labor law.

Main Industries

Small-scale consumer goods (plastic, furniture, batteries, textiles, clothing, soap)

GDP Growth

1.17%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Kenya

Population

53.7 million

Capital

Nairobi

Major Languages

English, Swahili

Currency

Kenyan Shilling

Internet Domain

.ke

International Dialing Code

+254

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Kenya
Nairobi, KE
10:39 pm, February 27, 2024
temperature icon 18°C
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Humidity 94 %
Wind Gust: 0 mph
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Payroll

Payroll in Kenya refers to the process of calculating and paying employees' salaries and benefits, as well as managing related tasks such as taxes, social security contributions, and other deductions. It is an important aspect of human resources management and requires compliance with the relevant laws and regulations in Kenya. Employers may choose to handle payroll in-house or outsource it to a professional payroll services provider.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 10 years

Reports

Employees receive paid annual leave of 21 days

Annual Leave

Employees receive paid sick leave of 14 days

Sick Leave

3 months of paid maternity leave and 14 days of paid paternity leave

Maternity & Paternity Leave

28 days

Employee Termination

There are no provisions mandated by law regarding the 13thmonth salary

13th month salary

The minimum range varies depending on industry and geographical location

Minimum Wage

Overtime payment of 1.5x the employee's ordinary rate of pay for working during night hours (10 pm - 6 am)

Overtime

Employees paid monthly are entitled to 15 days’ pay for every year of employment

Severance Pay

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Tax and Social Security

In Kenya, taxes and social security contributions are mandatory obligations for employers and employees. This includes paying income tax, value added tax (VAT), and National Social Security Fund (NSSF) contributions, among others. The specific tax and social security obligations can vary based on the type of business, the industry, and the individual’s income level, so it is important to be familiar with the relevant laws and regulations and comply with them in order to avoid penalties and legal consequences.

Tax

In Kenya, employers and employees are obligated to pay taxes and social security contributions as required by the relevant laws and regulations. The amount of tax one has to pay in Kenya depends on their income and is calculated as a percentage of their taxable income, with a maximum marginal tax rate of 30%.

30%

Corporate Income Tax

30%

Personal Income Tax

16%

Sales Tax

16%

VAT

Social Security

In Kenya, social security is provided through the National Social Security Fund (NSSF), which is mandatory for all employees and requires a monthly contribution of 5% of an employee's taxable income.

10%

Social Security Rate

5%

Social Security Rate for Employers

5%

Social Security Rate for Employees

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Employment Law

Employment law in Kenya governs the rights and obligations of employers and employees in the workplace. It includes laws related to hiring, wages, hours of work, benefits, termination, and workplace safety, among others.

Employment Agreement

An employment agreement in Kenya is a contract between an employer and an employee that outlines the terms and conditions of the employment relationship, including duties, compensation, benefits, and the termination process.

Working condition

In Kenya, the standard work hours are generally 45 hours per week, with a maximum of 8 hours per day and a minimum of 1 day off per week, although specific work hours and conditions may vary based on the terms of an employment agreement or collective bargaining agreement.

Leaves

In Kenya, employees are entitled to various types of leave, including annual leave, sick leave, and maternity leave, with the specific rules and entitlements determined by the employment agreement, collective bargaining agreement, or the country's labor laws.

Employment termination

Employment termination in Kenya refers to the process by which an employment relationship is ended, which can be initiated by either the employer or the employee, and must comply with the requirements of the employment agreement, labor laws, and relevant regulations.

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28 days

Minimum notice period for terminating an employee

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13

Total number of public holidays

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50

Working hours per week

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50

Total number of days for Compassionate & Bereavement Leave

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Immigration

Employees moving to Kenya for work purposes need to obtain a valid work permit and possibly a visa, which can be obtained through the Kenyan immigration authorities and typically requires documentation such as a job offer, passport, and medical certificate, among others.

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Residency permits

For employees who have come to Kenya for work, obtaining a residency permit is an important step to be able to legally reside and work in the country. The requirements for a residency permit include a valid work permit, proof of employment, and compliance with relevant immigration and security checks, among others. The specific rules and regulations may vary based on the employee’s nationality and the purpose of their stay.

Work Permit Validity

2 years (+2 years optional)

Required Documents

Filled out and signed application form

Cover letter from you, the employer

Copies of the foreigner’s passport

Two color, passport-size photos

Payment of the application fee

Compliant, reliable, error-free and touchless payroll in Kenya

Build the best team and hire top talent compliantly in Kenya. Get in touch with Kenya payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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