How to Start a Recruitment Agency in Kenya
Kenya’s ever-evolving job market demands a skilled workforce and efficient job placement services. If you are planning to start a recruitment agency in Kenya, the country offers a profitable opportunity to fill the gap between employers looking for talent and job seekers searching for the right opportunities. This blog explores the crucial steps and legal requirements for starting up a recruitment agency in Kenya.
Overview of Kenya’s Employment Landscape
Kenya’s Labour Law Act, 2007, dedicates Part VII to the issue of Employment Agencies in Kenya. Under the section, no person shall either carry on the business as an employment agency or charge or recover any payment in connection with the procurement of employment through an employer agency, unless that person has been registered in accordance with the provisions of the Act.
Services offered by an International Recruitment Agency in Kenya
International recruiting agencies offer a variety of services that include;
- Registering and regulating private employment agencies
- Providing information on registered employment agencies
- Inspection of private employment agencies to ensure compliance, verifying job offers and verifying foreign job offers.
Requirements to Register a Private Recruitment Agency in Kenya
To register as a Private Employment Agency to recruit Kenyan workers to work both locally and abroad, the following requirements must be fulfilled;
- Directors’ Academic Qualifications – The directors must have attained at least an O-level certificate (K.C.S.E) or equivalent, certified by the Ministry of Education.
- Minimum Share Capital – The company must have a minimum paid–up share capital of a specific amount as stipulated by the law.
- Physical Office – The company must have a registered, fully equipped physical office covering at least 225 square feet, with a lease or tenancy agreement authenticated by a commissioner for oaths.
- Tax Compliance – The agency must have a tax compliance certificate from the Kenya Revenue Authority.
- Qualified Company Manager – The manager must hold a degree in a business–related field from a recognised Kenyan University and have at least 3 years of relevant experience, with the certificate certified by the Ministry of Education.
- County Business Permit – The company must be licensed to operate within the intended county.
- Guarantee
- Associate Membership – The company must join an association of private employment agencies recognised by the Director of Employment upon approval of registration.
- Police Clearance Certificate – All the directors must have a valid Police Clearance Certificate from the Directorate of Criminal Investigations, renewed annually.
10. Performance Bond – A security bond of 1.5 million shillings must be executed with a reputable bank or insurance company upon approval of registration.
- Code of Conduct – The company, upon registration, must commit to observing the provisions of the existing code of conduct for recruitment agencies.
Documents required For Registration of a Recruitment Agency in Kenya
- An application letter on the company’s official letterhead.
- Human Resource Management qualification certificate of the firm’s Manager
- Company Articles and Memorandum of Association.
- Employment contract with terms and conditions, employing the Manager of the Firm
- Tax compliance certificates of the directors.
- Company certificate of Incorporation as a Limited Liability Company.
- Company CR12 for the current year
- A copy of the County Government License(s)
- Company Tax Compliance Certificate for the current year
- Office lease/Tenancy Agreement authenticated by a commissioner for oaths for a registered and fully equipped physical office covering not less than 225 square feet.
- A valid work Permit in case of any Foreign Director(s)
- The Directors must also provide 1D cards, passport-size photos, a police clearance certificate, a work permit (for foreign directors), and a certified academic certificate.
Partnering International Agencies with Local Licensed Agencies
If an international recruitment agency wants to recruit talent in Kenya. They must partner with a licensed local agency because foreign agencies cannot legally recruit directly in Kenya without a license.
Typical Partnership Structure
Step On How It Works Notes
1. Agreement: International agency signs a partnership/MOU with a local licensed agency. Defines roles, fees, and compliance responsibility
2. Candidate Sourcing Local agency sources, screens, and shortlists candidates. Must comply with labour laws and ethical recruitment practices
3. Documentation: Local agency handles contracts, offers, and government filings. Includes KRA compliance, NSSF/NHIF, and any sector licenses
4. Placement & Follow-up International agency handles final hiring, relocation, and employment abroad. Local agency may get a placement fee or commission
Conclusion
Once the above-listed documents have been compiled accurately, you are ready to start a recruitment agency in Kenya. The applicant moves on to begin the procedure for the application for registration. Such applications are done through the National Employment Authority Integrated Management System (NEAIMS) portal or through a company registration firm.
Start a recruitment agency in Kenya and experience countless investment opportunities. For assistance and consultation, reach out to our experts.
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