SETTING UP AN EMPLOYMENT AGENCY IN KENYA
Introduction
In Kenya’s rapidly evolving job market, the demand for skilled workers and efficient job placement services has never been higher. Establishing an employment agency offers a unique opportunity to bridge the gap between employers seeking talent and job seekers searching for the right opportunities. This article explores the essential steps and legal requirements for setting up an employment agency in Kenya, providing you with the tools to navigate this dynamic industry and capitalize on the growing need for professional recruitment services.
The Labor Institutions Act, 2007 dedicates Part VII to the issue on Employment Agencies in Kenya. Under this section, no person shall either carry 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.
To register a private international or local recruitment agency in Kenya, one will need to follow several steps and meet specific requirements set by the National Employment Authority. There are a variety of services that an Employment Agency can offer. They include but are not limited to 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.
What are the legal requirements to be eligible to register as a private employment agency?
It is important for the applicant to register a Limited Liability company under the Companies Act. The procedure and legal requirements required for this, has been discussed in our previous article.
Apart from registering and incorporating the company, to register as a Private Employment Agency to recruit Kenyans to work locally or abroad, the following key requirement 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 Ksh. 5,000,000 (Five Million Shillings)
- Physical Office – The company must have a registered, fully equipped physical office covering at lease 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 recognized Kenyan University and have atleast 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 – A guarantee of Ksh. 500,000 (Five Hundred Thousand) must be executed with a reputable bank or insurance agency in Kenya, to be used for repatriation, wage payments, and other entitlements in case of default.
- Associate Membership – The company must join an association of private employment agencies recognized 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.
- 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 upon registration.
What are the documents required during the registration of Recruitment Agencies in Kenya?
- An application letter on the company’s official letterhead.
- Company certificate of Incorporation as a Limited Liability Company.
- Company Articles and Memorandum of Association.
- 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.
- The Directors must also provide 1D cards, passport size photos, police clearance certificate, work permit (for foreign directors), and certified academic certificate.
- The company’s manager must possess a certified degree in a business-related field and provide an appointment letter, terms of employment, Passport Photo, and ID copy.
After ensuring that all the above listed documents have been complied accurately, the applicant moves on to begin the procedure for application for registration. Such applications are done through the National Employment Authority Integrated Management System (NEAIMS) portal.
The applicant must first create an account on the NEAIMS Portal by providing basic identification information. Next, the applicant selects the appropriate Employment Registration Type and proceeds to enter details for the directors, shareholders, and managers. At this stage, the applicant is required to complete the application forms within the portal and upload the necessary documents. Following submission, these documents will undergo verification, the office premises will be inspected, and vetting will be conducted to ensure compliance with regulatory standards.
The registration fee and Renewal Fee.
| Type of Application | Registration Fee | Renewal Fee |
| Private Foreign and Local Recruitment Agency | Ksh. 500,000 | Ksh. 500,000 |
| Private Recruitment for Local Agency | Ksh. 250,000 | Ksh. 250,00 |
| Replacement Fees (Ksh.) | ||
| Replacement of certificate of registration | Ksh. 10,000 | |
It is important to note that once a registration certificate issued, the same becomes valid for a period of one year from the date of issuance. The renewal of the same is done one month before the expiry of the certificate.
Conclusion.
In conclusion, establishing an employment agency in Kenya requires careful attention to regulatory requirements and a commitment to maintaining high standards of service. By following the outlined steps—from registering on the NEAIMS Portal to undergoing thorough vetting and inspections—applicants can ensure their agency operates within the legal framework and meets the growing demands of the job market. As the need for skilled talent continues to rise, a well-established agency not only benefits businesses and job seekers but also contributes to the overall development of the employment sector in Kenya.
“The information provided in this article is intended for general legal advice and does not constitute legal advice for any specific transaction or case. Since each transaction presents a unique legal context, it is advisable to retain a legal adviser for specific transactions.”
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