Kenya is renowned for its ethnic variety as well as its diverse terrain. Additionally, it is well recognised for having one of the biggest economies in Africa. 
 
Most of the nation’s income comes from the petroleum industry, transportation, technology, agriculture, manufacturing, construction, and public services. 
 
However, Kenya has recently come to light as a significant African technology powerhouse. As a result, it has become a more attractive location for foreign corporations looking to grow their operations in Africa. 
 
Your business’s needs will determine the type of person you hire if you’re seeking to find talent in Kenya. Therefore, deciding whether you will be recruiting an independent contractor or an employee is essential. 
 
Establishing the status of the recruit before starting work is crucial since an employee who is mistakenly labelled as an independent contractor in Kenya forfeits all of their rights and privileges, and vice versa.

Employees vs Independent Contractors in Kenya

You can expand, grow your business, onboard remote employees/contractors and manage them using our Employer of Record services.

So, instead of setting up a Kenyan entity (a costlier and time-consuming option), you can compliantly onboard new employees and commence your Kenya-focused operations within 48 hours.

Who is an Independent Contractor in Kenya?

An independent contractor is a self-employed individual, such as a consultant, attorney, accountant, engineer, or any other individual who performs services for another organisation in exchange for payment.

Both parties sign a contract outlining the contractor’s responsibilities, compensation, the nature and scope of the task, and other details. The agreement focuses more on the work than on the worker’s method of execution.
As you may have noticed, an independent contractor is not an employee.

Who is an Employee in Kenya?

An employee is a person who works for an employer in exchange for salary or wages and is considered a regular member of the organisation’s workforce.

Employees typically have a set schedule and are eligible for health insurance, retirement plans, and paid time off benefits.

They are also generally subject to the employer’s policies and procedures and are considered to be under the employer’s control in terms of their work and how they do it.

Factors to consider when Hiring Employees and Independent Contractors

Employees in Kenya

• Job duties and responsibilities: Will the employee’s duties and responsibilities involve work that is essential to the organisation’s operation?
• Taxes: Will the employer be liable for the employee’s tax withholding and payment?
• Benefits: Will the employee be qualified for perks like paid time off, health insurance, and retirement plans?
• Control: Will the employer control how the work is done and when it is done?

Independent Contractors in Kenya

• Job duties and responsibilities: Does the work being done by the contractor need a high level of competence or specific knowledge?
• The expectation of permanence:  Is the work being done as a freelancer or as part of a project?
• Benefits: Is the contractor responsible for their taxes, insurance, and other business costs?
• Taxes: Will the contractor’s employer be liable for tax withholding and payment?
• Control: Will the contractor have control over how and when the work is completed?

The classification of a worker, whether as an employee or a contractor, has legal ramifications; therefore, it’s vital to seek legal advice before making the choice.

How to hire employees and Independent Contractors in Kenya

When hiring employees in Kenya, it’s essential to follow the country’s labour laws and regulations.
This includes obtaining the necessary work permits and visas for foreign employees and adhering to minimum wage laws and other employment regulations.

To hire independent contractors in Kenya, it’s important to have a clear and detailed contract outlining the scope of work, compensation, and other terms of the agreement. It’s also important to ensure that the independent contractor is responsible for obtaining their own work permit and visa, if necessary.
It’s always recommended to consult with an Employer of Record before hiring employees or independent contractors in Kenya to ensure compliance with all relevant laws and regulations.

As an organisation looking to hire in Kenya, the following steps can be taken:

1. Outline the responsibilities and roles for each position

After getting all legal documents signed and ready, the first step is to define the specifications for the roles you intend to fill.

In defining the job description, consider the following question; what issues are we attempting to address when developing a role and writing job descriptions? What abilities and pursuits will resolve the issue?

Make job descriptions based on your responses to those queries. Avoid roles that are overly general or with ambiguous definitions. Prioritise your problems, then create job descriptions that will draw applicants who can help your organisation. You might also do market and compensation research for your jobs.

If you underpay for a difficult task, you are unlikely to attract suitable applicants. Having reasonable expectations about your ability to compensate for the new position is also crucial.

2. Find your ideal candidates

To recruit people to your organisation in Nigeria,  To recruit people to your organsation in Nigeria you must go where they are and find them.

Hence, you must advertise your openings in places where your ideal employees will see them. Some of which are Job boards and career sites, LinkedIn, Outsourcing organisations etc.

3. Interview qualified individuals

Never conduct an interview without a strategy in place. You must approach your interviews with the same strategic approach you used to define your jobs and identify candidates. Maintaining a problem-solving attitude, prepare a list of inquiries you can direct to each applicant.

While there is no ideal set of interview questions, the following can help you stay on course as you evaluate each applicant’s suitability for your organisational requirements:

• What are the top three qualifications you have for this position?
• What would be your first choice of task or challenge?
• What can you do to advance the organisation?
• What one thing would you modify or enhance in the organisation?

With the use of these questions, you may determine whether a candidate is aware of your business operations and how they might affect them.

What can we do for you?

When it comes to hiring employees and independent contractors in Nigeria, you cannot afford to take chances— you must abide by local regulations, especially regarding labour law and taxes.   This is where we come in.

Workforce Africa’s Employer of Record solution enables your company to hire, pay and support talent in Nigeria easily without worrying about compliance concerns.

Our experts will help you hire expatriates compliantly and make them feel connected and supported, no matter where they live in Nigeria. Don’t hesitate to get in touch with us right away.