Employer of record Kenya.

What is an Employer of Record (EOR)? - in Kenya

BIEA acts as a third party entity that hires and pays an employee on behalf of another company and takes responsibility for all formal employment tasks on behalf of the principle company.

In Many occasions foreign companies that do not have physical presence or a registered entity in Kenya needs to send an employee or a representative to work in Kenya. We provide the initial opportunity by providing employment on behalf of the parent company in Kenya.

“Our Employer of record services allow companies without local legal presence to employ locally legally in Kenya. These services also include payroll, benefits, taxes, stock options, and compliance. ”

What are the benefits of using an Employer of Record in Kenya?

  • 1. Immigration compliance abroad.
  • 2. Payment of staff abroad.
  • 3. Tax compliance and payment abroad.
  • 4. Initial cost effective operations.
  • 5. Facilitate employee on boarding.
  • 6. Removal of market entry barriers.
  • 7. Compliance with local laws.
  • 8. Reduce the costs of setting up a global office with 1 or two employees.

A special pass is processed and issued to qualified applicants upon application.

Employment Contracts in Kenya

In Kenya it is mandatory for have employment contracts for all foreign employees assigned jobs in Kenya.
In Kenya, the employment cover letter and contract must indicate the salary and any other benefits in Kenyan shillings.

Immigration Employment Compliance

Immigration employment policies and guidelines are constantly changing in Kenya and indeed around the world and there is increased scrutiny and restrictions by the government in the issuance of work permits and Work visas.
The government while trying to attract direct foreign investments, must also safeguard the local Kenyan job market which indeed has highly qualified Kenyans and few job opportunities.

This makes immigration employment compliance a great challenge for foreign companies and organizations.
To avoid non-compliance with immigration employment laws, many foreign companies choose to use our EOR solutions for the work permit applications in Kenya to process all work permit and visa requirements.

How it works

If a foreign company chooses to set up in Kenya, the first step is setting up a local company by registration. This of course is time consuming and expensive to ensure compliance.
Alternatively a foreign entity may set up a foreign subsidiary in Kenya to run the operations of the company.

For a new entry company seeking to test the waters, chase contracts or who simply do not need to set up office in Kenya immediately, using our local Employer of Record service is a better alternative.
We can handle all aspects of payroll, employment and immigration compliance requirements in Kenya. With flexible contracts.

What the employer of record does.

  • • Makes arrangement for all visas and work permits for the employee.
  • • Provides a registered entity for running a local, compliant employee in Kenya,
  • • Meets local labor regulations pertaining to local employment.
  • • Is and intermediary between the parent employer and local government regulations.

How much does a EOR in Kenya cost?

Our EOR costs vary depending on your company’s needs in Kenya.

  1. Flat rate one off option.
  2. Percentage of the payroll.
  3. Fixed monthly charge option.

Some statutory employment regulations in Kenya.

While employing a foreign national in Kenya, it is important to consider the following statutory employment practices.

  • Public Holidays
  • Working Hours - The labour law requires one 24-hour rest period every seven days and a one hour break per six hours of work
  • Vacation - Employees are generally entitled to 21 days of paid annual leave after one year of employment
  • Sick Leave - In general, employees are entitled to Sick leave under article 30 of the Employment Act.
  • The National Social Security Fund (NSSF) is a statutory savings scheme to provide for retirement. Both employers and employee’s contribute 5% (up to KSH 200) per month
  • The National Hospital Insurance Fund (NHIF) rates for high-income earners in the formal sector will rise by over 500 percent, that is, from the old NHIF rates of KSH 320 to KSH 1,700
  • Taxes - PAYE. The tax year is 1st January to 31st December

Some common benefits include

  • • Pension plans
  • • Life insurance
  • • Health insurance
  • • Car allowance
  • • Mobile phone allowance
  • • House Allowance