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How To Pay Remote Employees In Kenya

By
Mark
Muhoro

How To Pay Remote Employees In Kenya

By
Mark
Muhoro
|
March 18, 2022
8 min read

How to Pay Remote Employees in Kenya

If this is your first time paying  remote employees in Kenya , you may want to go with direct bank transfers. They are secure, and many banks can facilitate the transaction. However, before you settle for this, you should consider other options.

Kenya has different payroll and taxation laws. Wise employers strive to abide by them while giving remote employees convenient and timely payments. So before you head to the bank for a transfer, consider the following:

Outsource the Payroll Process 

One of the most effective solutions for paying remote employees in Kenya is outsourcing payroll to a third party. Your first option is to use a  local payroll  provider to handle compensation and issue checks on your behalf. 

The second option is reaching out to  WorkPay, renowned for offering HR, payroll, and compliance services across African countries, including Kenya. It allows employers to focus on business growth and operations instead of repetitive tasks. 

Outsourcing payroll ensures you don't have to worry about  tax obligations laws. Resident taxpayers in Kenya are subject to tax on their overall income. Remote or virtual employment from a foreign company does not impact this. 

Kenyan PAYE applies to weekly and monthly salaries plus bonuses, commissions, and other employment income. 

Pay Remote Employees as Independent Contractors 

Sometimes companies hire independent contractors to do remote work, which simplifies the payment process. After the company remits the payment, the contractor becomes responsible for their taxes and benefits. However, this arrangement is ideal for short-term projects rather than long-term staffing needs. 

The most common payment methods for independent contractors include:

  • Third-party online payment platforms such as PayPal, Payoneer, and Wise. 
  • Remittance services such as Western Union. However, these services have higher transaction fees than other payment methods.
  • ACH or bank wire transfer. 
  • Freelance job platforms with billable hours-functions. 

Use a Local Partner 

Suppose your company has suppliers, partners, or affiliate parties in Kenya. In that case, you can always place the employees on their payroll, which means that the remote worker would become a legal employee of the affiliate party and part of their payroll and benefits system. However, your company would continue supervising and directing remote employees' work.

So there you go! Paying remote employees in Kenya should be easy. All you need to do is agree on the rates with the employees, consider tax regulations, and then choose any of the above options to  remit the payments

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