Employer of Record in Kenya

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
Talk to us about Kenya

Why companies build teams in Kenya

Lundi supports compliant employment in Kenya — Nairobi has become East Africa's tech hub (Safaricom, M-PESA, plus a growing fintech and SaaS ecosystem). Strong fit for English-fluent operations serving Africa, Europe, and US East Coast. For broader African scaling we also consider South Africa, Nigeria, or Egypt.

Languages

Bantu Swahili, English

Payroll Frequency

Monthly

Currency

KES

Capital City

Nairobi

Employer Tax Rate

6.50%

Kenya has built itself into East Africa's leading tech hub — Nairobi concentrates fintech (Safaricom M-PESA heritage, Cellulant, Tala), SaaS (Andela alumni, Twiga), and professional services. English is the working language across professional roles. Kenyan shilling (KES) is the local currency. Employer social contributions are modest. Strong fit for English-fluent customer success, BD, and growing engineering operations serving African, European, and US East Coast customers. For broader African scaling Lundi also considers South Africa (deeper senior tech), Nigeria (larger market), or Egypt (deeper outsourcing infrastructure).

Cost of Employment in Kenya

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Kenya

Employer Tax Costs in Kenya

In Kenya, an employer’s total social contributions total 6.5%. This includes 5% that goes towards the National Social Security Fund and 1.5% that goes to the National Housing Development Fund: Total deductions must not exceed KSh5,000 monthly.

Employee Income Taxes in Kenya

In Kenya, the income tax breakdown is as follows:

Employee Probation in Kenya

The probationary period for employees in Kenya is six months.

Employee Overtime in Kenya

Normal working hours are 52 hours per week spread over a period of six days. An employee in Kenya cannot exceed 116 working hours in any two-week period.In Kenya, overtime work is paid at:One and a half times the normal hourly rate for time worked in excess of the normal number of hours per week; orTwice the normal hourly rate for time worked on the employee’s normal rest day or a public holiday

Employee Notice in Kenya

The minimum notice period in Kenya depends on when wages are due, and can be as long as 28 days. It is also possible to give payment in lieu of notice.

Termination in Kenya

Before terminating an employee contract for misconduct, performance, or physical incapacity to perform duties, the employer must first conduct a hearing. Terminations can only be carried out for just cause.In Kenya, severance is only paid in cases of termination due to redundancy. In this case, the severance pay is equal to 15 days of wages for every year of employment.

How Lundi works in Kenya

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.