What are the Employer Burdens in Kenya?

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:

  1. 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.

  2. 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.

  3. 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.

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