Updated 2 November 2026
Hiring your first employee in Kenya means doing five things before the first payday: register as an employer with KRA, NSSF, SHA and NITA, give a written contract, pay at least the gazetted minimum wage, insure the worker under WIBA, and budget for the employer’s own contributions. On a KSh 30,000 salary the employer pays roughly KSh 2,300 a month on top in NSSF, Housing Levy and NITA, before WIBA premiums. This guide gives the checklist, the cost and the rules first-time employers most often miss.
Updated November 2026. Rates are those in force on 2 November 2026 (NSSF Year 4 from February 2026, minimum wages from 1 May 2026). Sources are listed at the end.
In this guide
Checklist: hiring your first employee in Kenya
| Step | What to do | Where |
|---|---|---|
| 1. PAYE obligation | Add the PAYE obligation to your (or your company’s) KRA PIN so you can file monthly P10 returns | KRA iTax |
| 2. NSSF | Register as an employer and register the employee | NSSF self-service portal or branch |
| 3. SHA | Register as an employer so you can remit SHIF deductions | Social Health Authority employer portal |
| 4. NITA | Register for the industrial training levy | National Industrial Training Authority |
| 5. WIBA cover | Buy a work injury policy from a licensed insurer before work starts | Any IRA-licensed general insurer |
| 6. Contract | Issue a written contract if the job will last three months or more | Your own template |
| 7. Records | Keep payroll, leave and attendance records | Payroll file or software |
What will your first employee really cost?
The salary is only part of it. As an employer you also pay:
- NSSF: you match the employee’s 6% of pensionable pay, up to KSh 6,480 a month on pay of KSh 108,000 or more (Year 4 rates from February 2026). See NSSF contribution rates 2026.
- Affordable Housing Levy: you pay a matching 1.5% of gross pay. See the Housing Levy guide.
- NITA training levy: KSh 50 per employee per month.
- WIBA premium: set by your insurer; it depends on the job’s risk and your payroll.
SHIF (2.75% of gross pay, minimum KSh 300) and PAYE are deducted from the employee; you remit them but do not add to them.
| Gross salary | Employer NSSF | Employer Housing Levy | NITA | Monthly cost before WIBA |
|---|---|---|---|---|
| KSh 20,000 | KSh 1,200 | KSh 300 | KSh 50 | KSh 21,550 |
| KSh 30,000 | KSh 1,800 | KSh 450 | KSh 50 | KSh 32,300 |
| KSh 50,000 | KSh 3,000 | KSh 750 | KSh 50 | KSh 53,800 |
| KSh 120,000 | KSh 6,480 | KSh 1,800 | KSh 50 | KSh 128,330 |
Our calculations from the statutory rates. To see what the employee takes home after PAYE, SHIF, NSSF and the levy, use the PAYE calculator.
Minimum wage: the floor you cannot go below
Kenya has no single minimum wage. The Regulation of Wages (General) (Amendment) Order, 2026 sets rates by job and by area, effective 1 May 2026. A general labourer, cleaner or house servant in Nairobi, Mombasa, Kisumu, Nakuru or Eldoret must get at least KSh 18,047.40 a month basic, plus a 15% housing allowance if you don’t provide free housing, which takes the minimum to KSh 20,754.51. A receptionist or general clerk in the same cities starts at KSh 27,796.51 basic. Check the role you are hiring in our minimum wage 2026 tables.
The employment contract
Under the Employment Act, a contract for three months or more (in total working days) must be in writing. It should state at least:
- the employee’s name, age, ID number and start date;
- job title and place of work;
- pay, how it is calculated and when it is paid;
- working hours, leave and any probation period;
- notice period and how the contract can end.
Probation can last up to six months and may be extended once by up to six more months only with the employee’s agreement. Keep a signed copy and give one to the employee.
Leave and working time you must allow
- Annual leave: at least 21 working days with full pay after every 12 consecutive months of service.
- Sick leave: after two months’ service, 7 days on full pay and then 7 days on half pay in each 12 months, with a medical certificate.
- Maternity leave: three months with full pay. Paternity leave: two weeks with full pay.
- Overtime: one and a half times the hourly rate on normal days and double on rest days and public holidays under the General Wages Order.
Our leave rights guide and holiday pay rules go into detail.
WIBA: insuring your employee
Section 7 of the Work Injury Benefits Act, 2007 requires every employer to obtain and maintain an insurance policy with an approved insurer covering its liability to employees for work injuries and occupational diseases. Failing to do so is an offence punishable by a fine of up to KSh 100,000, up to three months in jail or both, with a further fine for every day it continues. Ask two or three licensed insurers for quotes; many bundle WIBA with employer’s liability cover. Report any work accident to the Directorate of Occupational Safety and Health Services within seven days of learning of it.
Monthly payroll deadlines
PAYE, NSSF and SHIF deducted in a month are due by the 9th of the next month, and PAYE is filed on the P10 return on iTax. The Housing Levy is due within nine working days after the end of the month. Late payment attracts penalties and interest, so diarise the dates; our KRA tax deadlines 2026 list helps.
Frequently asked questions
Do I need to register with NSSF to hire one employee?
Yes. NSSF registration applies to every employer, including one with a single employee, and the employer must match the employee’s 6% contribution.
How much does it cost to hire an employee in Kenya on KSh 30,000?
About KSh 32,300 a month before WIBA: the salary plus KSh 1,800 employer NSSF, KSh 450 Housing Levy and KSh 50 NITA levy.
Is a written contract required in Kenya?
Yes, for any contract lasting three months or more in total working days.
Is WIBA insurance mandatory for small businesses?
Yes. Every employer must insure its employees under the Work Injury Benefits Act; failure is an offence with a fine of up to KSh 100,000.
When do I remit PAYE and NSSF?
By the 9th of the month after the salary month. The Housing Levy is due within nine working days after month end.
Sources: Employment Act, 2007 (sections 9, 28–30, 42); Work Injury Benefits Act, 2007 (section 7); Regulation of Wages (General) (Amendment) Order, 2026, Legal Notice No. 108; NSSF Act, 2013 Year 4 rates; Industrial Training (Training Levy) Order; Kenya Revenue Authority; NSSF; Social Health Authority. Checked 2 November 2026. This is general information, not legal advice.
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