COUNTRY GUIDE
A short guide to building a dedicated offshore team in Kenya
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Nairobi
Swahili and English
55.34 million
GMT+3
60,000+
Kenyan Shilling (KES)
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$10.50 billion
$638 million
Nairobi
Swahili and English
55.34 million
GMT+3
60,000+
Kenyan Shilling (KES)
$10.50 billion
$638 million
Kenya is one of Africa’s top tech hubs, recognized for its leadership in fintech and mobile app development. The capital city, Nairobi, often called “Silicon Savannah”, hosts a thriving ecosystem of startups, investors, and global tech firms.
Google, Microsoft, IBM, and Amazon Web Services have established offices or programs in Kenya. The country offers a strong mix of tech talent, English fluency, and growing digital infrastructure. Its strategic location and regional influence make it a gateway to East Africa’s digital economy.
The Kenyan government supports tech growth through policies like the Digital Masterplan 2022–2032 and national projects such as Konza Technopolis, a $10 billion smart city. These initiatives aim to boost innovation, digital services, and data-driven industries.
In 2024, Kenya attracted $638 million in startup funding, the highest in Africa. The country’s ICT sector is valued at over $10.5 billion, contributing significantly to GDP and job creation.
Supportive regulation, increased connectivity, and international investment continue to position Kenya as a rising global player in tech and digital transformation.
Payroll cycle
In Kenya, the payroll cycle is typically monthly, with salaries paid at the end of each month. Employers must remit PAYE tax, NSSF, and NHIF contributions by the 9th of the following month.
Employer taxes
In Kenya, employers are responsible for several statutory contributions. These include matching contributions to NSSF (up to KES 720 per employee), NHIF payments based on employees’ salaries, and remittance of PAYE, which is withheld from employees’ monthly income. Additionally, employers must pay a 1.5% Housing Levy, matching the employee’s 1.5%, and ensure all taxes are submitted to the Kenya Revenue Authority (KRA) by the 9th of the following month.
Overtime pay
In Kenya, overtime pay is regulated by the Employment Act and applies to non-managerial and supervisory roles. Any hours worked beyond the standard weekly hours must be compensated as follows:
For salaried workers, the hourly rate is typically calculated by dividing the weekly salary by 45. Employers must keep accurate records of overtime hours to ensure fair compensation and legal compliance.
Paid leave
After completing 12 consecutive months of service, employees are entitled to a minimum of 21 working days of paid annual leave. If employment ends mid-year, leave is prorated at 1.75 days per month worked. Leave may be split, but at least two uninterrupted weeks must be taken. Unused annual leave must be taken within 18 months; otherwise, it may be forfeited unless the employee is leaving the company and entitled to a payout.
Sick leave
After two months of continuous service, employees qualify for 14 days of sick leave per year: 7 days with full pay, followed by 7 days with half pay, subject to valid medical certification.
Public and provincial holidays
Kenya has 12 nationally recognized public holidays each year.
Notice period
The notice period for terminating an employment contract varies based on the employee’s length of service:
If an employer chooses not to provide the notice, they must compensate the employee with payment equivalent to the notice period.
13th Month Bonus
The 13th‑month bonus, also known as a December bonus, is not mandated by law. It is a voluntary benefit that employers may offer as a token of appreciation and to boost employee morale.
When provided, it is typically calculated as an additional month’s salary and is often paid in December. Employers can decide on the eligibility criteria. It might be offered to all staff, those above a certain grade, or employees who have worked a minimum number of months (e.g. six months or full year).
Thinking about expanding your tech business to Kenya? You have several flexible options to get started.
Some companies choose to establish a legal entity in Kenya to build a long-term presence, gain full control over operations, or access government incentives. This route can be ideal for businesses planning to scale locally, open regional offices, or invest in infrastructure.
Others prefer to avoid the administrative complexity of local registration and instead opt for outstaffing or Employer of Record (EOR) solutions. These models allow companies to hire developers in Kenya quickly and compliantly, without managing payroll, tax filings, or labor contracts themselves.
The right approach depends on each company’s priorities, whether it’s speed to hire, long-term control, or minimizing compliance risk. Kenya’s outsourcing ecosystem supports both paths, making it easy for businesses to choose the setup that best fits their growth strategy.
ALLSTARSIT is a trusted outstaffing partner with experience in the African tech market. Whether you're looking to scale your team with Kenyan developers or build a full offshore unit, we’ll help you do it fast and compliantly.
Reach out to us to discover how Kenya’s skilled tech talent can power your growth.
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Over the past decade, Kenya's tech industry has shifted from a support function into a strategic engine for business growth. Companies are increasingly relying on Kenyan talent not just for cost-saving measures, but for value creation, such as building mobile-first platforms, localized SaaS tools, and customer-facing digital services. Kenya’s core strengths lie in fintech development, cloud solutions, data analytics, and IT support services. The private sector continues to innovate, while public investment in digital transformation adds to the sector’s stability and long-term potential.
Kenya's workforce is youthful, digitally connected, and driven by a strong entrepreneurial spirit. Developers, designers, DevOps engineers, QA testers, and product managers are increasingly participating in remote projects and distributed teams. Talent is sourced not only from Nairobi but also emerging cities like Kisumu and Mombasa. With growing access to global training platforms, bootcamps, and tech hubs, Kenyan professionals are quickly aligning their skill sets to international standards. Developers are particularly strong in mobile technologies, cloud-native architecture, open-source frameworks, and digital finance solutions.
While Kenya welcomes foreign business, navigating local compliance can be complex without local expertise. Businesses must address local employment contracts, tax withholding, statutory contributions, and employee benefits. Fortunately, these legal responsibilities are predictable and can be handled efficiently through third-party partners such as EOR services. Kenya’s data protection legislation ensures that privacy and data handling align with international expectations, making the market safer for businesses operating in fintech, healthtech, and SaaS industries.
Companies seeking to build dedicated development teams in Kenya have multiple options depending on size and strategy:
Each path offers flexibility in terms of budget, timeline, and ownership, with outstaffing being the most popular for companies new to the market.
Kenyan developers are well-acquainted with global team dynamics and remote communication norms. English is the official language, which significantly reduces communication barriers. Developers are comfortable using collaborative tools like Jira, Trello, GitHub, Slack, and Zoom, and often work within agile or scrum frameworks. Kenya’s time zone (GMT+3) supports overlap with teams in Europe, Asia, and even partial coverage for North America.
Like any outsourcing destination, Kenya presents challenges though most are manageable with the right approach:
There is a clear shift from traditional IT support roles to full-cycle product development. Many Kenyan teams now handle design, development, testing, and ongoing support for global companies. Trends also show increased interest in AI/ML, cybersecurity, API integrations, and blockchain development. Kenyan developers are no longer seen as support resources—they are becoming core contributors to product strategy and execution.
Kenya is ready for companies that prioritize quality, flexibility, and long-term partnerships. Businesses should begin by clearly defining the role of their remote team, whether project-based, extended development, or dedicated product ownership, and select a trusted local partner to navigate onboarding and compliance. As digital infrastructure matures and talent continues to scale, Kenya is expected to become one of the most influential outsourcing destinations on the continent, offering strong return on investment and innovation potential for years to come.
Contact us, and we’ll help you hire developers in Kenya.
