Why a Structured Onboarding Process Matters
A well-structured onboarding process sets the tone for an employee's entire tenure at your company. Research consistently shows that employees who experience thorough onboarding are more likely to stay with an organization beyond their first year. In the Kenyan job market, where competition for skilled talent is fierce, getting onboarding right is a critical retention strategy.
Beyond retention, proper onboarding ensures your business remains compliant with Kenyan labour laws. Missing a statutory registration or failing to issue a written contract within the required timeframe can expose your company to penalties. This checklist will walk you through every step, from pre-arrival paperwork to the end of the first week.
Pre-Arrival Documentation
Before your new hire's first day, you need to collect and prepare several key documents. Starting this process early prevents delays and shows professionalism. Send a welcome email at least one week before the start date outlining what the employee should bring and what to expect.
- Copy of national ID or passport
- KRA PIN certificate
- SHA membership card or registration number
- NSSF membership card or registration number
- Academic and professional certificates
- Two passport-sized photographs
- Bank account details for salary processing
- Emergency contact information
KRA PIN Verification and Tax Setup
Every employee in Kenya must have a KRA PIN for PAYE (Pay As You Earn) tax deductions. As the employer, you are legally required to deduct PAYE from your employees' salaries and remit it to the Kenya Revenue Authority by the 9th of every month. Verify the employee's KRA PIN on the iTax portal to ensure it is valid and active.
If the new hire does not have a KRA PIN, guide them through the registration process on the KRA iTax platform. Registration is free and can be completed online with a national ID. Once obtained, record the PIN in your payroll system so that monthly PAYE returns are filed correctly from the first pay cycle.
Employers who fail to deduct and remit PAYE on time face penalties of 25% of the tax due plus interest at the prevailing CBK rate. Ensure every employee has a valid KRA PIN before processing their first salary.
SHA Registration for New Employees
The Social Health Authority (SHA) is a mandatory health insurance scheme for all employed persons in Kenya. As an employer, you must register your new employee with SHA if they are not already a member. Monthly contributions are deducted from the employee's salary based on a graduated scale tied to gross pay.
To register a new member, you need their national ID, a passport photo, and a completed SHA registration form. The process can be done at any SHA branch or online through the SHA self-service portal. Record the SHA number in your payroll system and begin deductions from the first payslip.
| Gross Pay Range (KES) | Monthly SHA Contribution (KES) |
|---|---|
| Up to 5,999 | 150 |
| 6,000 - 7,999 | 300 |
| 8,000 - 11,999 | 400 |
| 12,000 - 14,999 | 500 |
| 15,000 - 19,999 | 600 |
| 20,000 - 24,999 | 750 |
| 25,000 - 29,999 | 850 |
| 30,000 - 34,999 | 900 |
| 35,000 - 39,999 | 950 |
| 40,000 - 44,999 | 1,000 |
| 45,000 - 49,999 | 1,100 |
| 50,000 - 59,999 | 1,200 |
| 60,000 - 69,999 | 1,300 |
| 70,000 - 79,999 | 1,400 |
| 80,000 - 89,999 | 1,500 |
| 90,000 - 99,999 | 1,600 |
| 100,000 and above | 1,700 |
NSSF Registration and Contributions
The National Social Security Fund (NSSF) provides retirement benefits to workers in Kenya. Under the NSSF Act 2013, both the employer and employee contribute to the fund. The Tier I contribution is 6% of the lower earnings limit (KES 7,000), split equally between employer and employee, while Tier II covers earnings between the lower and upper limits.
Register new employees who do not have an NSSF number at any NSSF branch. The registration requires a national ID and a completed application form. Ensure your payroll system is configured to calculate and deduct the correct NSSF amounts, and remit both the employer and employee portions by the 15th of each month.
Employment Contract Requirements
Under the Employment Act 2007, every employer must provide a written contract of employment. The contract should be issued within two months of the start date, though best practice is to have it signed on or before the first day. A properly drafted contract protects both the employer and the employee in case of disputes.
The contract must include the names of both parties, the job title, a description of duties, the start date, the place of work, working hours, remuneration details, leave entitlements, notice period, and any probationary terms. It should also reference statutory deductions for PAYE, SHA, NSSF, and the Housing Levy.
- Full legal names of employer and employee
- Job title and description of duties
- Start date and probation period (if applicable)
- Place of work and working hours
- Gross salary and breakdown of allowances
- Statutory deductions: PAYE, SHA, NSSF, Housing Levy
- Leave entitlements (annual, sick, maternity/paternity)
- Notice period and termination clauses
- Confidentiality and non-compete clauses (if applicable)
First-Week Onboarding Checklist
The first week is your opportunity to make the new hire feel welcome and set them up for success. A structured first-week plan reduces anxiety and accelerates productivity. Assign a buddy or mentor who can answer day-to-day questions and help the new employee navigate the workplace culture.
| Day | Activity | Responsible Person |
|---|---|---|
| Day 1 | Welcome session, office tour, workstation setup | HR / Office Manager |
| Day 1 | Contract signing and statutory document collection | HR Manager |
| Day 1 | IT setup: email, systems access, security credentials | IT Administrator |
| Day 2 | Company policies and handbook walkthrough | HR Manager |
| Day 2 | Introduction to team members and key stakeholders | Line Manager |
| Day 3 | Role-specific training and tools overview | Line Manager |
| Day 3 | Review of KPIs and performance expectations | Line Manager |
| Day 4 | Shadow a colleague or attend team meetings | Assigned Buddy |
| Day 5 | First-week check-in and feedback session | HR / Line Manager |
Automating Your Onboarding Process
Managing onboarding manually with spreadsheets and paper forms quickly becomes unsustainable as your team grows. Missed registrations, delayed contracts, and forgotten follow-ups can create compliance risks and a poor employee experience. An automated HR system ensures every step is tracked, deadlines are met, and nothing falls through the cracks.
Vendly helps Kenyan businesses streamline the entire onboarding process, from collecting employee documents to configuring statutory deductions in your payroll. With built-in checklists, automated reminders, and employee self-service portals, you can onboard new hires confidently and compliantly.