Career advice ยท Updated November 2026
Recruitment Agency vs Hiring Directly in Kenya: NEA Rules, Fees and Checks for Employers
A recruitment agency in Kenya must be registered with the National Employment Authority (NEA) under the Labour Institutions (Private Employment Agencies) Regulations, 2016, also known as Legal Notice 110. Using a registered agency saves an employer time on advertising and shortlisting, but the employer pays a service fee and still carries the legal duties of hiring. Hiring directly costs less in fees but more in your own time. This guide sets out what the law requires of agencies, how to check one, and when each route makes sense for a small employer.
Based on Legal Notice 110 of 2016 on Kenya Law and NEA’s accreditation requirements for recruitment agencies, both read on 7 November 2026. This is general information, not legal advice.
What the law requires of a recruitment agency
Regulation 3 of Legal Notice 110 sets the conditions for registration. An agency must:
- be a limited liability company in which at least one Kenyan citizen owns shares;
- have a minimum share capital of KSh 5 million;
- have a manager with at least a diploma in a business-related field and three years of relevant experience;
- run a fully equipped physical office of at least 225 square feet and hold a county business licence;
- hold a KRA tax compliance certificate and police clearance for every director, renewed every 12 months;
- belong to an association of private employment agencies recognised by the Director of Employment and commit to the code of conduct;
- for agencies recruiting for jobs abroad, execute a KSh 1.5 million guarantee with a bank or insurer, used for repatriation, wages and other entitlements if the agent or employer defaults.
A certificate of registration is valid for one year. The fee schedule in the regulations lists KSh 125,000 for an initial application by an agency recruiting for the local market and KSh 500,000 for foreign recruitment, with renewals at KSh 75,000 and KSh 250,000. The Ministry of Labour has since announced changes to registration and renewal for agencies placing workers abroad, so confirm current fees with NEA before relying on them.
Who pays the agency
Regulation 7 says agencies charge their principals a service fee for recruitment, documentation and placement. The principal is the client employer. For an employer, this means the fee is a cost of hiring that you should budget for and agree in writing: the amount or percentage, what it covers, when it is due and whether there is a replacement guarantee if the hire leaves early.
For job seekers, an agency that demands money up front for a local job is a warning sign. Our guide on spotting fake job adverts lists other red flags.
How to check a recruitment agency
- Ask for the NEA certificate of registration and check that it is current, since certificates last one year.
- Check the agency against NEA’s published list of accredited agencies and its online system, NeaIMS.
- Confirm the company name on the certificate matches the name on the contract and invoice.
- Ask which association it belongs to and whether it recruits for local or foreign jobs, since the licences differ.
- Ask for references from employers it has placed staff with recently.
Recruitment agency vs hiring directly
| Factor | Registered recruitment agency | Hiring directly |
|---|---|---|
| Fees | Service fee agreed with the agency | Advertising costs only, which can be zero |
| Your time | Agency advertises, screens and shortlists | You handle every application |
| Reach | Existing candidate pools, useful for scarce skills | Limited to where you advertise |
| Control | Less, as the agency filters first | Full control over who you see |
| Legal duties | Still yours once you employ the person, unless the agency is the employer under a separate arrangement | Yours |
| Best for | Senior, specialist or urgent roles; volume hiring | Entry-level roles; small teams; tight budgets |
Recruiting workers for jobs abroad
Agencies that place Kenyans with employers outside the country face stricter rules than local recruiters. They pay the higher registration fee, must lodge the KSh 1.5 million guarantee and are subject to extra checks by NEA and the Ministry of Labour. If you are a Kenyan employer, you will normally need only a local-market agency. If you are a job seeker considering work abroad, only use an agency that NEA lists as accredited for foreign recruitment, and never hand over your passport or pay fees without a written contract.
Questions to ask at the first meeting
- How many similar roles have you filled in the past year, and how long did they take?
- Where will you advertise, and will my company name appear?
- How do you test skills and check references before shortlisting?
- What happens if the person you place leaves or is dismissed during probation?
- Who owns the candidate data, and will you delete it when the search ends?
An agency that answers clearly and puts the answers in its contract is usually easier to work with than one that only quotes a low fee.
Your duties do not transfer
When you hire through an agency and put the person on your payroll, you are the employer under the Employment Act. You must issue a written contract, register with and remit to KRA, NSSF, SHA and the Housing Levy, and keep employment records. Our checklist on registering as an employer with NSSF, SHA, KRA and NITA covers the steps.
Some agencies offer outsourcing, where workers stay on the agency’s payroll and you pay the agency. In that case, the contract should state clearly who is the employer, who pays statutory deductions and who handles discipline and termination.
A practical middle path
Many small employers advertise directly, screen applications with a simple scorecard and use an agency only for hard-to-fill roles. Our interview scorecard template makes direct hiring faster and fairer, and the same scorecard helps you judge an agency’s shortlist.
Checklist before you sign with a recruitment agency
- Current NEA certificate seen and checked.
- Fee, payment date and replacement guarantee in writing.
- Job description, salary range and closing date agreed.
- Confirmation that the agency will not charge candidates for a local placement.
- Data protection: how the agency stores candidates’ CVs and for how long.
Frequently asked questions
Must a recruitment agency in Kenya be registered?
Yes. Private employment agencies must be registered with the National Employment Authority under Legal Notice 110 of 2016.
Who pays a recruitment agency's fee?
The regulations say agencies charge their principals, the client employers, a service fee for recruitment, documentation and placement.
How do I check if an agency is genuine?
Ask for its current NEA certificate, check NEA's accredited list and NeaIMS, and confirm the company name matches the contract.
Does using an agency transfer my employer duties?
No. If the worker is on your payroll, you remain the employer for contracts, statutory deductions and records.