Hiring in Kenya gives you access to a skilled, English-speaking workforce in one of East Africa’s most dynamic economies. It also comes with clear statutory obligations. The Employment Act, the National Social Security Fund Act, and the Social Health Insurance Act define what every employee is entitled to and what every employer must fund. This guide covers those obligations, the social levies you’ll manage, and the market-standard benefits you’ll need to attract competitive candidates.
How benefits work in kenya
Kenya’s benefits framework combines statutory leave entitlements, mandatory social levies, and a strong market practice of supplementary benefits in professional roles. You’re responsible for meeting the statutory floor on every hire, and the benefits you add on top will shape your ability to retain talent.
The key laws are the Employment Act (Cap. 226), which covers leave and service pay, and the legislation establishing SHIF and NSSF. Both social funds were updated in 2024 and 2025 respectively.
| Benefit | Status |
|---|---|
| Annual leave (21 working days) | Mandatory |
| Public holidays (10 per year) | Mandatory |
| Sick leave (7 days full pay + 7 days half pay) | Mandatory |
| Maternity leave (91 days at full pay) | Mandatory |
| Paternity leave (2 weeks paid) | Mandatory |
| SHIF contributions | Mandatory |
| NSSF contributions | Mandatory |
| Service pay on termination | Mandatory (where no pension/gratuity) |
| Private health insurance top-up | Market standard, not mandatory |
| Group life cover | Market standard, not mandatory |
| Airtime/data allowance | Market standard, not mandatory |
| 13th month bonus | Not required |
Annual leave
Kenya’s Employment Act sets the annual leave minimum at 21 working days after 12 continuous months of service. The entitlement doesn’t accrue incrementally through the year; it kicks in once an employee completes a full year with the same employer.
Leave can’t be forfeited. You can’t require an employee to give up their entitlement, and substituting leave with cash in lieu isn’t automatically permissible during an active employment relationship. Carry-over is possible, but the terms should be set out clearly in the employment contract or a leave policy. Any outstanding balance is typically paid out on termination.
Public holidays
Kenya observes 10 public holidays per year. If an employee is required to work on a public holiday, they’re entitled to an extra day off in lieu or an additional day’s pay. The main public holidays include:
- New Year’s Day (January 1)
- Good Friday and Easter Monday
- Labour Day (May 1)
- Madaraka Day (June 1)
- Utamaduni Day (October 10)
- Huduma Day (October 26)
- Mashujaa Day (October 20)
- Jamhuri Day (December 12)
- Christmas Day (December 25)
- Boxing Day (December 26)
Sick leave
Employees are entitled to 7 days of sick leave at full pay and a further 7 days at half pay within each 12-month period. A medical certificate is required to claim sick leave. There’s no statutory provision for extended sick leave beyond these 14 days; additional absence is handled under the employment contract terms and any applicable company policy.
Maternity and paternity leave
Kenya provides paid leave for both mothers and fathers, and both entitlements are employer-funded.
Maternity leave
Female employees are entitled to 91 days of maternity leave at 100% pay. Employees must give at least 7 days’ notice before going on leave, so the employment contract should make this requirement explicit. Employees on maternity leave can’t be dismissed, and the leave period doesn’t interrupt continuity of service.
Paternity leave
Fathers are entitled to 2 weeks of paid paternity leave following the birth of a child.
Shif and nssf as employee benefits
Kenya’s two mandatory social levies are SHIF and NSSF. Both are administered monthly and require registration at the point of hire.
Social health insurance fund (shif)
SHIF replaced the National Health Insurance Fund (NHIF) and is administered by the Social Health Authority (SHA). Every employee contributes 2.75% of their gross salary, subject to a minimum of KES 300 per month. You withhold this from the employee’s pay and remit it to SHA. There’s no matching employer share; your obligation is to deduct correctly, remit on time, and keep every employee registered. SHIF contributions fund employees’ access to public health services under Kenya’s universal health coverage framework.
National social security fund (nssf)
NSSF provides pension and retirement benefits. Following a February 2026 update, contributions follow a Tier I and Tier II structure, with employer and employee each contributing 6% of gross salary. You register each employee, deduct their share from pay, add your employer contribution, and remit the combined amount monthly.
Service pay
Service pay is a termination benefit that applies when an employee isn’t covered by NSSF, a registered pension fund, or a contractual gratuity arrangement. Where none of those exist, you must pay 15 days’ basic salary for each completed year of service on termination.
The practical implication: make sure every employee is enrolled in NSSF from day one. If enrollment lapses or was never set up, you may face a service pay obligation on departure that you haven’t budgeted for.
Market-standard benefits
Kenya doesn’t require benefits beyond the statutory minimum, but three non-mandatory benefits are standard at the professional level.
Private health insurance. SHIF covers public health facilities, but most professional employees expect a private medical insurance scheme on top. Group health cover including inpatient, outpatient, dental, and optical is the norm in knowledge-worker roles. Without it, you’ll find it difficult to compete for experienced candidates.
Group life cover. A lump-sum death benefit of two to four times annual salary is common in mid-to-senior roles. It’s low cost for the employer and highly valued by employees.
Airtime and data allowances. Monthly airtime or data allowances are widely provided, particularly in tech, finance, and sales roles, usually as a fixed monthly amount in the employment contract.
Kenya has no statutory 13th month bonus, so year-end payments are at the employer’s discretion.
How an EOR manages benefits in kenya
To employ staff directly in Kenya, your business needs a registered legal entity in-country. For most foreign companies hiring a small team, the cost and time of incorporation doesn’t make commercial sense.
An Employer of Record (EOR) lets you hire in Kenya without a local entity. The EOR holds the employment relationship in Kenya, handles SHIF and NSSF registration and remittance, runs payroll, and administers statutory leave. Your team member works within your business day-to-day; the legal employer sits with the EOR.
This matters in Kenya because SHIF and NSSF remittances are ongoing monthly obligations, service pay creates a liability to manage from day one, and both maternity and paternity leave costs fall directly on the employer. An Employer of Record gives you the local infrastructure to meet all of these obligations correctly.
Hire in kenya with RemotePass
RemotePass handles Kenya payroll, SHIF and NSSF registration, leave administration, and full statutory compliance with no local entity required. Book a RemotePass demo to see how the platform works.
