Employer of Record in Kenya: what one employee really costs
Kenya, Africa. One software engineer at $20,000 gross per year, priced through 12 providers with a published fee, on the European Commission's September 2026 exchange rate. Change the salary and headcount below.
- Employer on-cost
- +4.5%
- statutory charges on top of gross
- All-in per month
- $1,941 – $2,441
- salary + charges + published fee, cheapest to dearest listed provider
- Onboarding through an EOR
- 1 day
- per Deel - Hire employees in Kenya ('your next hire could start in as little as 1 days [sic] with Deel')
Hiring one software engineer in Kenya at $20,000 gross a year costs about $75 a month in statutory employer charges (+4.5%), plus an EOR fee of $199 to $699 per month depending on the provider: $1,941 to $2,441 all-in, before deposits, FX margins and add-ons. Prices checked 2–24 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to Kenya
Price your own hire, line by line.
≈ KES 2,590,140 gross / year · KES at the European Commission monthly rate for September 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $1,667 | |
| National Social Security Fund (NSSF), employer share capped | 6% | $50 |
| Affordable Housing Levy, employer share | 1.50% | $25 |
| Employer on-cost | +4.5% | $75 |
| Cost of employment, before EOR fee | $1,742 |
$1,941/ month · 1 employee
- Fee / mo
- from $199
- Per year
- $23,288
- Fee share
- 10.3%
Checked 2 Sept 2026
Get a RemoFirst quote$2,241/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $26,888
- Fee share
- 22.3%
Checked 2 Sept 2026
Get a Papaya quote$2,341/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $28,088
- Fee share
- 25.6%
Checked 2 Sept 2026
Get a Deel quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
14 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $1,941 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $1,941/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $2,061 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $2,061/mo |
| Pebl Velocity Global, renamed Pebl in 2026. Prints $399 per employee per month. | from $399 | $2,141 | Not stated on the pricing page | 185+ | 22 Sept 2026 | Get a quote from Pebl· $2,141/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $2,141 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $2,141/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499 $459 billed annually | $2,241 | Refundable security deposit required per employee by the EOR terms (effective 1 June 2026), sized by Multiplier; not on the pricing page. | 150+ | 24 Sept 2026 | Get a quote from Multiplier· $2,241/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $2,241 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $2,241/mo |
| Borderless AI EOR at $579 per employee per month, no deposit or pre-funding, 170+ countries. | $579 | $2,321 | No deposit: 'No upfront deposits or pre-funding required' (pricing page). | 170+ | 24 Sept 2026 | Get a quote from Borderless AI· $2,321/mo |
| Atlas HXM EOR from $599 through its own entities, plus an Agent of Record at $199. | from $599 | $2,341 | Not stated on the pricing page | 160+ | 21 Sept 2026 | Get a quote from Atlas HXM· $2,341/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $2,341 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $2,341/mo |
| G-P EOR in 180+ countries from $599, with no minimum contract length. | from $599 | $2,341 | Not stated on the pricing page | 180+ | 24 Sept 2026 | Get a quote from G-P· $2,341/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $2,441 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 24 Sept 2026 | Get a quote from Oyster· $2,441/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $2,441 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $2,441/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 24 Sept 2026 | Get a quote from Rippling |
| Safeguard Global EOR sold alongside entity setup and payroll; no price published. | Quote only | — | Not stated | 187+ | 21 Sept 2026 | Get a quote from Safeguard Global |
Same salary and statutory charges in every row; only the fee segment changes.
What Kenya adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| National Social Security Fund (NSSF), employer shareEvery employer, on pensionable earnings up to the Upper Earning Limit | 6% | Gross salary , capped at KES 1,296,000 / yr Section 20(1)(a) of the NSSF Act sets the employer contribution at six per centum of monthly pensionable earnings, and pensionable earnings are defined as the lower of the employee's monthly wages and the Upper Earning Limit. The limit is what moved: the Act's Third Schedule phases it in over five years, and NSSF's notice to employers puts Year 4 into effect in February 2026 with a Lower Earning Limit of KES 9,000 and an Upper Earning Limit of KES 108,000 a month. The employer therefore pays at most KES 540 on the lower band plus KES 5,940 on the band above it, KES 6,480 a month in all, which is the figure this ledger caps at. Providers' own Kenya pages have not all followed the schedule: Deel's still prices NSSF against a maximum salary of KES 36,000, the Year 2 limit, which understates the charge by two thirds at this salary. | NSSF Kenya2026-09-21 |
| Affordable Housing Levy, employer shareEvery employer, on the employee's gross monthly salary, with no ceiling | 1.50% | Gross salary The Affordable Housing Act, 2024 makes the Kenya Revenue Authority the collector and splits the levy in two equal halves. KRA's public notice states it as 'One point five per centum (1.5%) of the employee's monthly gross salary by the employer', alongside the same rate deducted from the employee. There is no ceiling, so this line grows with pay while the NSSF line stops at KES 108,000 a month - above roughly KES 108,000 the housing levy becomes the larger of the two employer charges. KRA also notes the employer's share is an allowable deduction under section 15 of the Income Tax Act. | Kenya Revenue Authority2026-09-21 |
| NITA industrial training levy (KES 600 per employee per year) not in total | — | Carried at zero because the amount is too small to show as a ledger line, not because it is optional. The Industrial Training (Training Levy) Order requires that 'an employer shall remit to the Director a levy of six hundred shillings per employee per year or pro rata for their term of service'. At the example salary that is about USD 4.63 a year, or 39 cents a month, too small to show as its own row. It is a real employer charge - the Industrial Training Act states that 'a training levy shall not be deducted from the emoluments of an employee' - and it is worth knowing it is a flat amount per head: it is often quoted as 'KES 50 a month', which is the same figure paid annually. Newly registered businesses are exempt for their first twelve months. | Kenya Law2026-09-21 |
| Social Health Insurance Fund (SHIF), 2.75% - deducted from the employee not in total | — | Carried at zero because it is a payroll deduction, not an employer charge. The Social Health Authority sets contributions at 2.75% of gross monthly income with a floor of KES 300 a month and no ceiling, and describes the mechanism plainly: 'Contributions are automatically deducted from employees' gross salaries by their employers at a rate of 2.75%. Employers are responsible for calculating and remitting these payments.' SHIF replaced the NHIF in 2024, and because the employer does the remitting it is easy to find it counted inside an employer cost figure. It reduces the employee's net pay, not your invoice. | Social Health Authority2026-09-21 |
| Work Injury Benefits Act (WIBA) cover - insurance premium, not a percentage charge not in total | — | Carried at zero because it is an insurance premium whose rate depends on the insurer and the occupation, not a statutory percentage of one salary. The Work Injury Benefits Act obliges every employer to hold approved cover for its employees against work injury, and providers price it as a line on the invoice: Deel publishes 0.91% for Kenya. Under an employer of record the policy is the provider's, so what you see is whatever margin and class rating it applies, which is why this ledger will not present a single number as if it were the law. | Deel2026-09-21 |
| Thirteenth month pay - not required by Kenyan law not in total | — | Carried at zero because the Employment Act, 2007 does not require a thirteenth month or any annual bonus. Bonuses in Kenya are contractual. What the Act does require on the way out is service pay under section 35(5) and, on redundancy, severance of not less than fifteen days' pay for each completed year of service plus one month's notice or pay in lieu - costs that fall at termination rather than in the monthly run rate. | Kenya Law2026-09-21 |
| Employer on-cost at $20,000 | +4.5% | $900 a year, $75 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
Kenya is the country where the date on the page matters more than the rate. Both employer charges are simple - 6% to the NSSF and 1.5% to the housing levy - but the NSSF ceiling has been climbing on a statutory schedule since 2023, and it changed again in February 2026. Year 3 capped pensionable earnings at KES 72,000 a month; Year 4 caps them at KES 108,000, which lifts the maximum employer contribution from KES 4,320 to KES 6,480 a month. A page still quoting KES 36,000 or KES 18,000 is not wrong about the rate and is badly wrong about the money. The practical consequence for a hiring decision is that the Kenyan employer cost is close to flat in percentage terms only up to about KES 108,000 a month of pay; above that the 6% stops growing and the housing levy carries on, so the blended on-cost falls as the salary rises. Two figures that look like employer costs are not: SHIF at 2.75% is deducted from the employee, and WIBA cover is an insurance premium the provider buys. Running your own Kenyan entity would not change any of the statutory rates - the same 6%, the same 1.5% and the same KES 600 training levy apply to every employer - so the comparison against an employer of record is about the provider fee and the cost of incorporating, not about cheaper payroll.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Borderless AI fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $6,948 | $900 |
| 3 | $7,164 | $20,844 | $2,701 |
| 5 | $11,940 | $34,740 | $4,502 |
| 10 | $23,880 | $69,480 | $9,004 |
| 20 | $47,760 | $138,960 | $18,009 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 21 days
- Public holidays
- 11
- 13th month
- Not mandatory
- Probation
- up to 6 months
- Notice
- Twenty-eight days for a salary paid monthly, under section 35(1)(c) of the Employment Act, 2007, which makes a contract paying wages at intervals of a month or more terminable at the end of the twenty-eight days following written notice. A probationary contract may be ended on seven days' notice or seven days' wages in lieu. On redundancy the employer owes at least one month's notice or a month's wages in lieu, plus severance of fifteen days' pay for each completed year of service.
- Reviewed
- 2026-09-21
Get a quote for Kenya.
The lowest published total here, next to the two providers searched for most often (the rule). Totals for 1 hire at $20,000. Ask each provider about deposits, FX margins and mandatory add-ons for Kenya: those are the lines that move.
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much does an employer of record cost in Kenya?
- On a USD 20,000 salary the gross is about $1,667 a month and statutory employer charges add about $75, so payroll lands near $1,742 before the provider takes anything. Add the EOR fee on top: about $1,941 a month with Remofirst at $199, about $2,341 with Deel at $599. The employer charges are 6% to the NSSF, capped at KES 108,000 of monthly pay, plus the uncapped 1.5% housing levy.
- What is the employer cost in Kenya as a percentage of salary?
- About 4.5% at a USD 20,000 salary. It is not a fixed percentage, because the NSSF share stops at KES 108,000 of monthly pensionable earnings: at that pay level the NSSF line is worth 6% of salary, and above it the contribution is frozen at KES 6,480 a month while the salary keeps rising. Only the 1.5% housing levy tracks pay all the way up.
- Why do other sites show a higher Kenyan employer cost?
- Two reasons, and they pull in opposite directions. Some add SHIF at 2.75%, which the Social Health Authority defines as a deduction from the employee's gross salary that the employer merely remits. Others add the provider's own work-injury insurance premium and liability fee, which are commercial charges rather than statutory ones. What Kenyan law puts on the employer is the 6% NSSF contribution, the 1.5% housing levy and a KES 600 annual training levy.
- Did the NSSF contribution change in 2026?
- Yes. NSSF's notice to employers put Year 4 of the Act's Third Schedule into effect in February 2026: the Lower Earning Limit rose to KES 9,000 a month and the Upper Earning Limit to KES 108,000, taking the maximum employer contribution to KES 6,480 a month and the combined employer-and-employee maximum to KES 12,960. Year 3, which ran to 31 January 2026, capped pensionable earnings at KES 72,000.
- What leave and notice apply in Kenya?
- Twenty-one working days of paid annual leave after twelve consecutive months of service, under section 28 of the Employment Act, 2007. Notice is twenty-eight days where wages are paid monthly. A probationary period may not exceed six months, extendable by up to six more with the employee's agreement, and may be ended on seven days' notice. There is no statutory thirteenth month.