Companies aren’t limited by physical borders anymore. You can hire from anywhere and expand your team with fresh perspectives from all over the world. In recent years, companies have been hiring from countries off the beaten track, such as Kenya. However, finding the talent you need legally can be challenging.
An Employer of Record (EOR) offers a simple and straightforward way to legally hire and pay global talent. It provides everything you need to hire, onboard, and pay employees compliantly.
Read on to learn all about hiring employees from Kenya through an EOR.
Why Hire Talent in Kenya?
Kenya is home to a vibrant tech community that's catching the attention of big tech worldwide. Microsoft opened one of its two Africa Development Center (ADC) locations in Kenya’s capital city of Nairobi. Google followed suit and opened its first-ever Product Development Center in Africa, in Nairobi.
Big tech’s move to Kenya is an indication of the country's growth in the tech scene, largely from the work of its talent pool. As a result, homegrown Kenyan companies are losing their talent to multinational companies that see the country’s immense potential.
Big tech's presence has also impacted Kenya’s IT infrastructure, which has strengthened drastically in the last decade. A $72 million investment in 2012 brought high-speed internet and fiber optic cable services for television and voice-over-internet protocol telephone systems to Kenya, among other African nations.
Hiring from Kenya is also very cost-effective. Salary levels are significantly lower than in the US and Canada due to their lower cost of living. This means you can hire skilled talent in Kenya for a fraction of the cost of hiring domestically.
How Can I Legally Hire an Employee in Kenya?
If you want to hire talent in Kenya on your own, things can get complicated. To hire in Kenya, businesses must establish an entity based in Kenya. The process can be a headache and may only be worth pursuing if you intend to practice business in Kenya long-term.
EORs offer an easy, straightforward way to hire full-time employees from Kenya. An EOR, like Borderless, serves as an intermediary and facilitates the processes involved in global hiring.
EORs already have an entity in place that can hire and onboard talent, ensuring compliance with local laws and regulations.
What Does an EOR Do?
EORs ensure you maintain strict compliance with local laws and regulations in the countries you hire talent from. They remove the legal roadblocks involved in hiring so that you can focus on growing your business. Hiring laws vary considerably around the world, and it’s critical to comply with them to avoid legal implications. EORs take care of the following processes and ensure they’re fully compliant:
- Work visas and permits
- Employment contracts
- Onboarding
- Tax documentation and filing
- Payroll processing
- Employee benefits
- Intellectual property protection
- Termination
EORs handle all of the tedious administrative tasks associated with these processes. They generate compliant employment contracts, collect tax documentation, file it per local laws, etc.
Employee Insurance and Benefits
It’s always essential to stay competitive, especially in a tight labor market. An EOR will help you stand out from the crowd with a comprehensive benefits package, including generous health and wellness benefits, time off, financial security, and much more. It will ensure you provide your team members with what they’re legally entitled to and help you attract top talent with attractive offerings.
Vacations and Public Holidays
Employees in Kenya are entitled to a minimum of 21 days of paid annual leave after working for the same employer for 12 consecutive months. Employees who have worked with their employer for less than a year are entitled to a pro-rated leave depending on the time worked. New hires are entitled to an annual holiday starting in the seventh month after starting their employment, per the New Labor Law.
Additionally, employers in Kenya are required to give their employees paid days off on federally regulated public vacations. The following public holidays are observed in Kenya.
- January 1: New Year's Day
- April 7: Good Friday
- April 10: Easter Monday
- April 12: Eid – ul - Fitr
- May 1: Labour Day
- June 1: Madaraka Day
- October 10: Huduma Day
- October 20: Mashujaa Day
- December 7: Utamaduni Day
- December 12: Jamhuri (Independence) Day
- December 25: Christmas Day
- December 26: Boxing Day
Any public holiday falling on a Sunday is observed the following Monday.
Taxes & Social Security Contributions
Kenya relies on the pay-as-you-earn (PAYE) system, a method of collecting income taxes in which the employer deducts the employee's income tax from their paycheck and remits it to the Kenya Revenue Authority (KRA). As an employer with a Kenyan-based team, you must withhold taxes from your employee's salaries or wages and send it to KRA by the ninth of the next month, at the latest. Employers must also contribute monthly National Social Security Fund (NSSF) contributions.
An EOR, like Borderless, will ensure you remit payroll taxes on time, every time. With the support and expertise of an EOR, social security contributions are simplified, and taxes are filed accurately and compliantly. So you can cut back on busy work and focus on growing your business.
What Are the Advantages of Going Through an EOR in Kenya?
Working with an EOR comes with a range of benefits.
- Saves time and money
- Minimizes risks and avoids penalties related to non-compliance
- Cuts back on busy work
- Improves retention and talent attraction
- Expands your talent pool
- Keeps your employee's data safe and secure
- Keeps you up to date on hiring trends
These are just some of the ways EOR can positively impact your business. Connect with Borderless, your EOR of choice, to see what we can do for your business.
How Do I Choose the Right EOR for Me?
With so many to choose from, it’s essential to determine which EOR suits your individual needs. Consider the following to make an informed choice:
- Expertise: Choose an EOR with a notable history of hiring, onboarding, and managing employees in the countries you want to hire from. Checking this box will help ensure your EOR of choice maintains compliance every step of the way.
- User experience: It’s important to provide your team with an easy-to-use, intuitive EOR platform packed with self-service options. The goal is to integrate it into your team's existing workflow stress-free.
- Support: Turn to EORs with a solid team of experts with a proven track record. Ensure that they’ll be there to lend you support when you need it.
- Security: Keeping your data safe and secure is paramount. This is especially true when working with a globally distributed team, leaving you more vulnerable to cyberattacks. So, choose an EOR that has a robust set of data security standards and protocols.
Borderless: The Employer of Record your Company Needs
Broaden your horizons by hiring global talent. Borderless is your EOR of choice to expand your talent base and get the most out of your global hiring experience. Get in touch today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
