Employers in Kenya have several statutory obligations when it comes to employee contributions and payroll-related responsibilities. These are designed to support employee benefits, social security, and skill development.
Below are the three primary employer burdens in Kenya:
National Social Security Fund (NSSF):
Contribution: Employers must contribute KES 2,160 per month for employees earning KES 36,000 or more. This amount matches the employee’s contribution of KES 2,160, creating a total monthly contribution of KES 4,320.
Purpose: These contributions go toward the employee's pension and long-term financial security under the NSSF system, providing retirement, disability, and survivor benefits to employees.
Housing Levy:
Contribution: Employers must contribute 1.5% of the employee's gross salary (excluding one-off benefits) to the Housing Levy, with the same amount contributed by the employee.
Purpose: The Housing Levy is part of Kenya's affordable housing initiative, aimed at providing affordable homes for employees and supporting housing development in the country.
National Industrial Training Authority (NITA):
Contribution: Employers must pay a fixed amount of KES 50 per employee to the National Industrial Training Authority (NITA).
Purpose: This contribution supports the funding of industrial training programs that help develop workforce skills and improve overall employee productivity.