A Kenya employer of record EOR is a third-party entity that assumes the legal responsibility of hiring employees on behalf of another company. This covers payroll, benefits, tax compliance, and other job-related responsibilities.

FKE provides a platform for employers to promote solid industrial relations and fair labor standards.

The main difference between the two is that an employer hires and supervises workers directly, but an Employer of Record (EOR) acts as a middleman for another company, taking on legal responsibility for employment-related duties on its behalf.

While our primary focus is on domestic HR consulting, we have experience working with clients that have international operations. We can assist with navigating global HR challenges, such as labor laws, cultural differences, and payroll compliance.

Using Kenya employer of record method ensures that payroll and other employment obligations are processed seamlessly and in compliance without the establishment of a company.

Yes, companies must ensure that the EOR complies with all Kenyan labor laws and regulations. This includes adhering to minimum wage requirements, statutory benefits, and termination procedures. Additionally, the EOR must ensure proper tax reporting and social security contributions.

The EOR processes payroll according to Kenyan laws, including calculating salaries, withholding taxes, and ensuring timely payment to employees. They also handle statutory contributions such as the National Social Security Fund (NSSF) and the National Hospital Insurance Fund (NHIF).

Employees in Kenya are subject to Pay As You Earn (PAYE) tax, which is deducted from their salary by the employer. The EOR ensures these taxes are correctly calculated and remitted to the Kenya Revenue Authority (KRA).

An EOR manages statutory benefits such as social security and health insurance, as well as any additional benefits the client company offers, such as private health insurance, pensions, or other perks.

When selecting Kenya employer of record provider, companies should consider factors such as:

• The EOR’s experience and reputation in Kenya
• The range of services offered
• Compliance with local laws and regulations
• Client testimonials and case studies
• Cost and pricing structure
• The quality of customer support

The cost of EOR services varies based on factors such as the number of employees, the complexity of the payroll and benefits administration, and the level of service required. Typically, EORs charge a percentage of the employee’s salary or a flat monthly fee per employee

Yes, many EORs offer services to assist with obtaining work permits and visas for expatriate employees, ensuring compliance with immigration laws and regulations.