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Employer of record in Kenya, explained

Wycliffe Orao · 2 min read

Three colleagues working together around a conference table

Want to hire in Kenya without setting up a local company? An employer of record can employ your team for you. Here is how it works and when it makes sense.

What an employer of record is

An employer of record (EOR) is a company that legally employs people on behalf of another business. The EOR holds the employment contract, runs payroll, pays the statutory deductions and keeps the employment compliant with local law. Your business directs the day-to-day work, as it would with any employee.

When it makes sense

  • You want to hire in Kenya but do not have, or do not yet want, a registered local entity.
  • You are testing a new market with a small team before committing.
  • You need someone to start soon, and setting up a company would take months.
  • You want one partner for contracts, payroll and compliance across a spread-out team.

What the EOR handles

  • Employment contracts that follow Kenyan employment law.
  • Monthly payroll, payslips and statutory deductions.
  • Leave, benefits and employment records.
  • Onboarding, and exits handled properly.
  • Work permits and relocation, where needed.

What stays with you

You choose who to hire, set their goals and manage their work. The EOR does not manage your people. It makes sure they are employed properly, paid on time and protected by a compliant contract.

EOR, or your own entity?

An EOR is usually the faster and simpler route for a small team. As the team grows, your own entity can become better value. A good partner tells you when that point is coming, rather than keeping you on the service.

Rules and statutory rates change, so check the current requirements with your EOR or a local adviser before you hire.

How we do it

Run Right, our HR outsourcing and EOR service, employs your team in Kenya with no local entity needed. Payroll runs on time every month, and you get a report on your people every quarter.

Let’s build your team right.

Tell us what you’re building. We’ll show you how we’d find the people to build it.