Last updated: 30 Jan 2026
Hire in Kenya immediately without incorporating locally. BIEA acts as the legal employer, managing payroll, statutory compliance, and work permit sponsorship.
What is an Employer of Record (EOR) in Kenya?
An Employer of Record (EOR) is a local legal employer that hires and pays employees on behalf of a foreign company. You manage day-to-day work; the EOR handles employer responsibilities—contracts, payroll, statutory deductions, reporting and HR administration.
Why use Employer of Record services in Kenya?
- Fast market entry: Hire in days without registering a Kenyan entity.
- Compliance handled: PAYE, NSSF, SHIF/SHA and Housing Levy processes managed correctly.
- Immigration support: Work permit guidance and coordination where applicable.
- Predictable costs: Clear monthly administration costs and reporting.
How our EOR service works — step by step
- Scope & quote: Confirm headcount, roles, compensation, benefits and any immigration needs.
- Onboarding: Contracts, payroll setup, statutory registration and employee file setup.
- Pay & comply: Monthly payroll processing, deductions, remittances and statutory filings.
- Ongoing HR: Leave administration, disciplinary/termination support, and monthly reporting.
Employment is managed in line with Kenya’s employment and payroll compliance framework (contracts, PAYE administration, social protection and health insurance rules, and applicable immigration processes).
Statutory payroll compliance in Kenya (2026) — what we handle
We manage payroll calculations, statutory deductions, remittances and proof-of-payment reporting each cycle.
| Item | What it is | How BIEA helps | Official reference |
|---|---|---|---|
| PAYE (KRA) | Income tax deducted at source and remitted to KRA. | Monthly payroll runs, PAYE computation, remittance support & reporting. | KRA PAYE |
| NSSF | Social security contributions. | Enrollment guidance, contribution processing and documentation support. | NSSF rates |
| SHIF/SHA | Kenya’s social health insurance administration (replaced older NHIF references). | Employee onboarding alignment and payroll deductions administration. | Ministry of Health |
| Housing Levy | Affordable Housing Levy deducted and remitted via KRA. | Deduction administration and remittance support in payroll cycle. | KRA notices |
Note: contribution rules and portal requirements can change; we align payroll administration with current official guidance.
Onboarding timeline (typical)
- Contracts & documents collection: 1–3 business days
- Payroll + statutory setup: 1–10 business days (depending on documentation and KYC)
- First payroll run: typically within 3–15 business days
- Work permits: timelines vary by permit class and approvals
Exact timing depends on documentation quality and any immigration requirements.
Pricing models & indicative examples
We use common EOR pricing approaches and provide a tailored quote after scoping.
Starter (Pilot)
From USD 250 / employee / month
(indicative)
- Payroll + statutory administration
- Basic HR support
- Contract setup + onboarding checklist
Growth
From USD 350 / employee / month
(indicative)
- Payroll + benefits administration
- Enhanced reporting & SLAs
- Immigration coordination support (where needed)
Enterprise
Custom
- Dedicated account management
- Custom reporting and escalations
- Higher-volume payroll operations
Final fees depend on headcount, payroll complexity, benefits and immigration scope.
EOR vs PEO vs setting up a local entity — quick comparison
| Option | Time to start | Operational control | Compliance burden | Typical use |
|---|---|---|---|---|
| EOR | Days | You manage day-to-day work | BIEA manages employer compliance | Pilots, fast hires, remote teams |
| PEO | 1–3 weeks | Shared arrangements | Shared / varies by contract | Payroll outsourcing (structure-dependent) |
| Local entity | Weeks–months | Full control | You manage all filings & governance | Long-term presence & operations |
Trust, experience & local presence
Business & Immigration East Africa (BIEA) supports foreign employers operating in Kenya with compliant onboarding, payroll administration and local HR coordination. We focus on predictable execution: contracts, monthly payroll cycles, statutory administration and practical guidance.
Verified office address
Kose HeightsArgwings Kodhek Road, Kilimani
Nairobi 00100, Kenya
Contact
Phone: +254 700 176 096
WhatsApp: +254 700 176 096
Email: info@bieastafrica.com
Frequently asked questions
What is an Employer of Record (EOR) in Kenya?
An Employer of Record (EOR) is a Kenyan entity that becomes the legal employer for your staff, handling compliant contracts, payroll, statutory deductions and HR administration while your company manages day-to-day work.
Can you support work permits for expatriates?
Yes. We advise on the suitable permit class, prepare supporting documents and coordinate follow-up through Kenya’s immigration process.
How long does onboarding take?
Typical onboarding is 3–15 business days depending on documentation and payroll setup. Work permit timelines vary by permit class and approvals.
How much do Employer of Record services in Kenya cost?
Pricing depends on headcount, payroll complexity, benefits and immigration scope. Many providers price per employee per month; we provide tailored quotes after scoping.
Do we need to register a company in Kenya to hire employees?
No. With an EOR, you can hire employees in Kenya without setting up a local entity. The EOR is the legal employer and handles local compliance while you direct daily work.
What payroll and statutory deductions do you handle in Kenya?
We support payroll processing and statutory administration such as PAYE, NSSF, SHIF/SHA-related payroll handling, and other required deductions depending on the engagement and setup.
Can you hire both employees and contractors through your service?
Yes. We can support employee hiring via EOR and contractor engagements, and we advise on correct classification to reduce misclassification risk.
Can salaries be paid in foreign currency?
Salaries are typically paid in Kenyan Shillings for local payroll and statutory reporting. Where compliant with banking and payroll requirements, foreign-currency arrangements may be possible on a case-by-case basis.