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A Professional Employer Organisation (PEO) in Kenya provides payroll and HR outsourcing to companies that already hold their own Kenyan legal entity. The PEO takes on the employer-facing administrative obligations – KRA PAYE calculations, NSSF declarations, SHA deductions, NITA levy payments, AHL remittances and Employment Act 2007-compliant HR administration – while the client entity retains commercial and operational control of its workforce. It is the right structure for companies already registered in Kenya that want to reduce payroll compliance overhead.
Quick facts: PEO Kenya at a glance
- A PEO in Kenya requires the client to already hold a registered Kenyan entity
- The PEO manages payroll processing, KRA PAYE filings, NSSF, SHA, NITA levy and AHL remittances on behalf of the client entity
- Employment contracts remain in the client entity’s name; the PEO manages compliance execution
- The structure reduces internal HR overhead without the client losing operational control
- All employment obligations under the Employment Act 2007 continue to apply
What Is a PEO in Kenya?
A PEO in Kenya is a payroll and HR compliance outsourcing arrangement operating within the client’s existing Kenyan entity. Unlike an EOR, a PEO keeps the employment relationship inside the client’s registered entity. The PEO processes payroll, handles KRA iTax filings, manages NSSF and SHA contributions, pays the NITA levy, remits the Affordable Housing Levy and maintains employment records – all under the client entity’s own KRA PIN and BRS registration.
PEO vs. EOR in Kenya: Key Differences
| Factor | PEO Kenya | EOR Kenya |
|---|---|---|
| Client needs a Kenyan entity? | Yes – required | No – EOR acts as legal employer |
| Legal employer | Client’s entity | Bergmont Employer of Record Limited |
| Monthly KRA iTax filings | Managed by PEO on behalf of client | Managed by EOR |
| Employment contracts | In client entity’s name, managed by PEO | In EOR’s name |
| ELRC respondent on dismissal | Client entity | Bergmont Employer of Record Limited |
| Best for | Companies with existing Kenyan entity | Companies without a Kenyan entity |
Kenya Employment Obligations Covered Under a PEO Arrangement
Under the Employment Act 2007, the client entity remains the legal employer. The PEO manages the administrative execution of statutory obligations. Monthly PAYE is calculated and remitted to the Kenya Revenue Authority (KRA) via iTax by the 9th of the following month. NSSF contributions are declared and remitted by the 9th. SHA contributions are deducted and remitted monthly. The NITA levy (KES 50 per employee per month) and the Affordable Housing Levy (1.5% employer + 1.5% employee) are remitted monthly. Employment Act 2007-compliant payslips and leave records are maintained for every employee.
Why Companies Choose Africa Deployments Kenya for PEO Services
- All monthly KRA, NSSF, SHA, NITA and AHL filings managed: Every deadline met without client involvement in the filing process.
- Employment Act 2007-compliant payslips and records: All documentation maintained to Ministry of Labour standard.
- ELRC-ready HR documentation: Disciplinary records and termination letters structured to Employment Act 2007 standards.
- Annual P9 return filed: Due by 28 February; handled by Africa Deployments Kenya without client action.
- Nairobi-based entity: Bergmont Employer of Record Limited (BRS: PVT-BEUE3LMJ) operates in Kenya – not a remote provider.
Frequently Asked Questions
Does a PEO in Kenya assume the client entity’s ELRC liability?
No. The client entity remains the respondent in any ELRC matter. The PEO manages documentation to minimise ELRC risk, but the legal liability remains with the client entity. This differs from an EOR, where Bergmont Employer of Record Limited is the employer and manages ELRC matters directly.
How quickly can Africa Deployments Kenya begin managing an existing payroll?
Africa Deployments Kenya conducts a compliance audit before assuming management. Transition typically takes two to four weeks from signing, once complete employee data and existing KRA and NSSF registration details are provided.
Can a PEO in Kenya manage employees on fixed-term contracts?
Yes. Bergmont Employer of Record Limited processes payroll and manages KRA filings for indefinite-term, fixed-term and part-time employment arrangements. The Employment Act 2007 requires that fixed-term contracts specify the duration and reason for the fixed term.
Does the PEO service cover WIBA insurance?
Under a PEO arrangement, WIBA insurance remains the responsibility of the client entity as the legal employer. Africa Deployments Kenya advises on WIBA requirements and assists with the arrangement process.
About Africa Deployments Kenya
Registered Company Name: Bergmont Employer of Record Limited
Address: Mercantile House, Koinange Street 2nd floor, Office 202, P.O Box 4979-00200, Nairobi, Kenya
BRS: PVT-BEUE3LMJ | KRA PIN: P052386396W
Website: kenyadeployments.com
For companies with a Kenyan entity that want to reduce HR overhead without changing the employment structure, a PEO is the right fit. Africa Deployments Kenya manages KRA filings, NSSF, SHA, NITA and AHL compliance inside the client’s existing entity – so the client can focus on the Kenyan business it built the entity to run.
Reviewed by: Africa Deployments Compliance Team
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