• PAYE: graduated rates from 10% to 35% under the Income Tax Act, less personal relief of KES 2,400 a month, paid to the Kenya Revenue Authority by the 9th of the following month.
• NSSF: under the NSSF Act, year 4 rates from February 2026 are 6% from the employee and 6% from the employer on pensionable pay up to the upper earnings limit of KES 108,000, a maximum of KES 6,480 each a month, due by the 9th.
• SHIF: 2.75% of gross pay from the employee (minimum KES 300), paid to the Social Health Authority. It replaced NHIF in October 2024.
• Affordable Housing Levy: 1.5% from the employee, matched by 1.5% from the employer.
• Employers also need work injury cover under the Work Injury Benefits Act.

The UK and Kenya have a 1973 double taxation agreement, amended by a 1976 protocol and in force from 30 September 1977; no replacement convention is published on GOV.UK. Tax treaties do not cover National Insurance. The UK has no social security agreement with Kenya. If a UK employer sends one of its own employees to work there, UK Class 1 National Insurance may continue for the first 52 weeks if the conditions are met, and NSSF contributions may also be due. If the person is employed locally through the employer of record instead, UK Class 1 National Insurance does not normally continue, although they may be able to pay voluntary Class 3 contributions if they meet the conditions. UK income tax depends on residence under the Statutory Residence Test. Using an employer of record does not by itself prevent a permanent establishment; under this agreement, an agent who habitually concludes contracts for you can create a permanent establishment, and an agent who works wholly or almost wholly for one enterprise may not count as independent. Ask us for a proposal and we will look at your facts.

Pricing. Our employer of record service in Kenya is US$199 to US$399 per employee per month (excluding UK VAT or any local sales tax, where either applies), plus the employment costs, which are charged at cost. We confirm the fee for your team in a written proposal.

Invoicing and VAT. Employment costs (salary, employer social security, pension contributions and other agreed employment costs) are charged at cost. VAT, where it applies, is charged on the total of the employment costs and our service fee. Our fees for this service are set out in US dollars in your proposal and invoiced in US dollars, exclusive of VAT. Where UK VAT applies, the VAT amount is also shown in pounds sterling on our invoice, as UK VAT rules require. SLONEC Advisory Group has applied for VAT registration. Where VAT applies, it will be charged at the applicable rate on fees for work carried out on or after our VAT registration date, and our VAT number will be shown on our invoices.