Definition

What is an Employer of Record in Kenya?

An Employer of Record (EOR) eliminates the administrative barriers between your business and a fully compliant Kenya workforce. Two Max Group becomes the legal employer on record — processing payroll, managing statutory compliance, and issuing employment contracts under our corporate identity — while your team retains full day-to-day control over the employees' work.

What does Two Max Group do as your EOR?

When you engage our Kenya EOR service, Two Max Group assumes full legal responsibility for your local workforce. Our payroll team processes monthly salaries, submits mandatory returns to the Kenya Revenue Authority, and verifies every obligation under the Employment Act, Cap 226 is met. Your managers retain total authority over daily tasks and deliverables.

For multinationals, this is the fastest legal route to hiring in Kenya. Without an EOR, the minimum deployment timeline is 3–6 weeks of corporate registration. With Two Max Group, staff are active in 48 hours.

  • Legal employment contracts issued under Two Max Group's corporate identity
  • PAYE computation and KRA iTax filing — submitted before the 9th-of-month deadline
  • NSSF, SHIF, and Housing Levy — calculated and remitted to statutory deadlines
  • Leave, disciplinary, and offboarding — managed by IHRM-certified professionals
  • Work permit support for foreign nationals integrated within EOR scope
EOR Deployment Status — Two Max Group
EOR Agreement Executed
Scope, SLA, and pricing confirmed
Complete
Employment Contracts Issued
Cap 226 compliant
Complete
Statutory Registrations
KRA PAYE · NSSF · SHIF · Housing Levy
Complete
4
First Payroll Cycle Activated
Gross-to-net · P10 filing
In Progress
5
Ongoing HR & Compliance
Monthly payroll · leave · reporting
Active
Use Cases

Who uses EOR in Kenya?

Any foreign company seeking to employ people in Kenya without a local entity is the primary audience. That spans a US tech firm deploying its first Nairobi-based manager, to a multinational running a 50-person East Africa hub, to international development agencies managing project-based teams under donor compliance frameworks.

The optimal market entry strategy

Our EOR framework is equally suited to agile enterprises validating commercial viability in Kenya before committing capital to subsidiary incorporation. The World Bank consistently ranks Kenya among East Africa's most attractive investment destinations. Two Max Group's EOR platform lets you capitalize on that without regulatory delay.

  • Foreign companies with no Kenyan subsidiary
  • Multinationals evaluating the East African market
  • International NGOs directing project-based workforces
  • Technology firms rapidly expanding from EMEA
  • Companies mid-registration who need staff active immediately
Process

How our Kenya EOR service works

Five implementation steps separate your organisation from a fully compliant Kenya workforce. Two Max Group executes all five on your behalf. Your personnel are operational within 48 hours of confirming the engagement.

STEP 01 · DAY 1
Engagement & Scoping
EOR framework agreement signed. Compensation packages and start dates confirmed. Compliance scope finalised.
STEP 02 · DAY 1–2
Contracts & Registration
Cap 226 compliant employment agreements drafted. KRA PAYE, NSSF, SHIF, and Housing Levy registrations initiated.
STEP 03 · DAY 2
Payroll Activated
First payroll cycle established. Gross-to-net variables calculated. Bank and M-Pesa disbursement configured.
STEP 04 · MONTHLY
Payroll & Compliance
Monthly payroll execution, KRA P10 filing before the 9th-of-month deadline, and itemised payslip delivery.
STEP 05 · ONGOING
Full HR Management
Leave, disciplinary actions, offboarding, work permits, and annual P9 tax certificate generation — all handled by our IHRM-certified team.
Full Scope

Everything included in our Kenya EOR service

One fixed monthly retainer. No hidden charges. No gaps in coverage. All 12 statutory and HR obligations managed end to end.

01
Employment Contracts
Cap 226 compliant agreements covering probation, notice, leave, and termination. English + Kiswahili available.
02
PAYE & KRA iTax Filing
Accurate PAYE under Finance Act 2025 bands. P10 filed via KRA iTax before the 9th-of-month deadline.
03
NSSF Contributions
Tier I and Tier II pension — 6% employee deduction matched by 6% employer contribution, per the NSSF Act.
04
SHIF & Housing Levy
SHIF at 2.75% of gross remitted monthly. Housing Levy at 1.5% employee + 1.5% employer paid to the KRA.
05
Payroll & Payslips
Gross-to-net payroll disbursed to bank or M-Pesa with fully itemised digital payslips meeting local regulations.
06
Leave Management
21-day annual leave, 30-day sick leave, 3-month maternity, and 2-week paternity — all tracked and administered.
07
Disciplinary & Grievance
Formal procedures managed by our legal compliance officers — reducing Employment and Labour Relations Court exposure.
08
Work Permit Integration
Class G Work Permits and Special Passes managed through our Work Permit service — aligned with employment timelines.
09
Offboarding & P9 Certificates
Final settlements, accrued leave, statutory gratuities, KRA P9 certificates, and statutory clearance documentation.
10
Multi-Currency Funding
Fund Kenya payroll in USD, GBP, or EUR. CBK-compliant remittances with full reconciliation reports.
11
Annual Compliance Updates
Finance Act amendments, NSSF rate changes, and SHIF updates implemented on gazette publication day.
12
KRA Audit Documentation
P10 filing history and remittance confirmations retained for the KRA-mandated 5-year period. Audit-ready always.
48hr
Staff operational
Contracts, registration, payroll — done.
KES 0
Statutory penalties
Zero late filings on record since inception.
12
Obligations managed
Every statutory and HR duty in scope.
5yr
KRA retention
Every payroll record kept for statutory period.
Live Calculator

Kenya Payroll Calculator — 2026 rates

Calculate your full employment cost in Kenya instantly. Enter the gross salary plus any bonuses or allowances — the tool handles PAYE, NSSF, SHIF, and the Affordable Housing Levy automatically using Finance Act 2025/26 rates.

Monthly Gross Salary
KES
50K 1M
Bonus / Allowances (monthly)
KES

Transport, housing, or other taxable allowances. Added to gross for PAYE computation.

Number of Employees
1

Team total shown in the summary below. Each employee calculated at the same gross.

Deduction / Contribution % of Gross Monthly (KES)
PAYE Income Tax Employee
Progressive bands 10%–35% · KRA iTax P10 · withheld by employer
NSSF — Employer Contribution Employer
6% of pensionable pay · max KES 6,480 · Tier I & II
NSSF — Employee Deduction Employee
6% of pensionable pay · max KES 6,480 · NSSF Act 2013
SHIF — Social Health Insurance Employee
2.75% uncapped · replaces NHIF · Social Health Insurance Act 2023
Affordable Housing Levy — Employer Employer
1.5% of gross pay · remitted to KRA monthly
Affordable Housing Levy — Employee Employee
1.5% of gross pay · deducted from employee salary
Total Employer Cost
KES —
Employer Add-ons
KES —
Est. Employee Net
KES —
Team Total (×1)
KES —
Statutory Rates — Finance Act 2025/26
PAYE Income Tax
10% – 35%
Progressive bands. First KES 24,000 at 10%. Personal relief of KES 2,400/month deducted.
NSSF Phase 4
6% ER + 6% EE
Pensionable pay capped at KES 108,000. Max contribution KES 6,480 each side per month.
SHIF (Social Health Insurance)
2.75% EE
Uncapped. Replaces NHIF. Remitted to the Social Health Authority (SHA) monthly.
Affordable Housing Levy
1.5% ER + 1.5% EE
Both employer and employee contribute 1.5% of gross. Remitted to KRA via iTax.

*Estimates based on Kenya statutory rates (Finance Act 2023/2026). Indicative purposes only. Contact Two Max Group for a binding EOR proposal.

Comparison

Comparing EOR vs registering your own entity in Kenya

Both pathways establish a legally compliant workforce. The critical differences lie in implementation speed, setup cost, and who carries the compliance risk.

Factor EOR — Two Max Group Own Entity
Time to first hire48 hours from engagement3–8 weeks (BRS, KRA, NSSF, SHIF)
Entity requiredNo — use Two Max Group'sYes — mandatory before first hire
Setup costZero registration feesKES 30K–100K+ (legal, BRS, KRA)
Monthly adminZero — fully managedIn-house HR or outsourced
Employment liabilitySits with Two Max GroupSits with your entity
PAYE complianceManaged — zero late filingsYour responsibility — 5% + 1%/month penalty
Finance Act updatesApplied on gazette dayYour responsibility to monitor
ScalabilityAdd or remove at any timeHR capacity must scale
Work permitsIntegrated — Class G, Special PassSeparate process
Exit flexibilityEnd engagement — no wind-downKRA deregistration, NSSF/SHIF

Choose your own entity for permanent long-term presence

Once your East Africa footprint is consistently profitable, a registered subsidiary provides permanence and commercial credibility. Two Max Group's Company Registration service handles full incorporation.

Explore Registration →
Industries

Kenya EOR — built for every sector

Our compliance infrastructure accommodates the distinct HR regulations and employment dynamics of each major economic sector.

Foreign Investment
Foreign Companies Entering Kenya
The most frequent EOR use case. Onboard a regional lead in weeks — then transition to your own subsidiary via our Company Registration service at your preferred timeline.
Technology
Technology & High-Growth Digital
Kenya's digital economy produces exceptional talent. Recruit software engineers and fintech developers legally from day one — with HQ funding payroll in USD or GBP.
Development Sector
International NGOs & Donors
We balance Employment Act requirements alongside the strict payroll reporting mandates of USAID, FCDO, EU, and UN agencies — delivering audit-ready documentation.
Financial Services
Banks & Regulated Institutions
Layered compliance and comprehensive audit trails to satisfy internal risk committees, the Central Bank of Kenya, and KRA examiners.
Healthcare
Healthcare & Life Sciences
Pharmaceutical companies deploy field-based researchers and medical sales teams across Kenya — with immediate, legally compliant employment frameworks.
Professional Services
Consulting & Advisory Teams
Mobilise senior project directors for defined, short-term engagements without the overhead of a permanent entity. Flexible terms tailored to consulting cycles.

Your Kenya team — operational in 48 hours.

Tell us who you need to hire, their role, and your timeline. We handle everything from contract to payroll to compliance.

FAQ

Frequently asked questions about EOR in Kenya

The questions C-suite executives ask before engaging Two Max Group — answered with full regulatory precision.

An Employer of Record in Kenya is a company that becomes the legal employer of your Kenyan workforce. Two Max Group generates employment agreements, executes monthly payroll, manages all statutory deductions, and ensures full compliance with the Employment Act, Cap 226. You retain complete authority over the employees' daily workflows. Foreign organisations use this structure to secure local talent legally without registering a domestic subsidiary.

Yes — but indirectly. An international enterprise cannot directly employ a Kenya resident without completing the local incorporation process. By contracting with Two Max Group as EOR, your firm circumvents this requirement. The employee is employed by our established Kenyan entity, allowing you to direct their work compliantly.

Within 48 hours of commercial engagement. Once we receive personnel data, Two Max Group drafts compliant contracts, registers the individual for KRA PAYE, NSSF, SHIF, and Housing Levy, and integrates them into the active payroll. Registering an independent entity with equivalent configurations typically takes 3–8 weeks.

Every mandatory deduction: PAYE under Finance Act 2025 progressive bands (10%–35%), filed via KRA iTax before the 9th-of-month cut-off. NSSF Tier I and II (6% employee + 6% employer). SHIF at 2.75% of gross. Affordable Housing Levy at 1.5% employee + 1.5% employer. We have never submitted a late statutory return.

An EOR is the sole legal employer — used when you have no Kenya entity. A PEO co-employs alongside your existing registered Kenyan entity. No local company = EOR. Already have a registered entity and want to outsource HR and payroll = PEO.

Immigration administration is integrated within our EOR model. Specialists in our Work Permit service coordinate Class G Work Permits, Special Passes for short-term assignments, and Dependent Passes for family members — all aligned with employment contract timelines.

Contracts comply fully with Employment Act, Cap 226, Section 9 — covering probation schedules, notice periods, leave entitlements, remuneration, and severance. Issued under Two Max Group's corporate name in English, with Kiswahili translation on request.

A structured migration. Our consulting arm can manage the company registration if needed. We then migrate payroll ledgers, KRA filings, NSSF and SHIF enrolments, and HR archives to the new entity. Employment agreements are legally novated from Two Max Group to your firm — zero disruption to employees, statutory benefits preserved, compliance history transfers seamlessly.

Two Max Group · Employer of Record Kenya

Your Kenya team —
compliant in 48 hours.

One engagement. Every Kenya statutory obligation managed. Zero penalty exposure. 14+ years of flawless compliance.

Phone: +254 711 160 996 Proposal: within 24 hours Staff active: 48 hours
Company
Two Max Group
Kenya Employer of Record
Location
Nairobi, Kenya
Updated