You’re here because you want to know how recruitment agencies make money in Kenya.
I’m going to break it down for you like I’m explaining it over coffee: direct, no BS, and loaded with value you can actually use.
Whether you’re a job seeker wondering why these agencies don’t charge you a dime or an employer curious about where your cash is going, this article’s got you covered.
Recruitment agencies in Kenya are a powerhouse in the job market.
They connect talent with opportunity in a country where unemployment hovers around 5-10% (depending on who’s counting) and companies scramble for skilled workers.
But how do they turn that hustle into profit?
There are three big ways they cash in—and trust me, it’s simpler than you think.
Method 1: Contingency Fees – The “No Win, No Fee” Cash Cow
Here’s the deal: contingency fees are the bread and butter of how recruitment agencies make money in Kenya.
It’s a performance-based model.
They don’t get paid unless they deliver.
Think of it like a bounty hunter—except instead of tracking outlaws, they’re chasing the perfect candidate.
How It Works
An employer says, “I need a sales manager, yesterday.”
The agency scours their database, hits up LinkedIn, and maybe even sweet-talks a few referrals.
They find the guy (or gal), polish them up, and send them to the employer.
If the employer hires them, the agency gets a cut—usually 15-25% of the candidate’s first-year salary.
No hire? No paycheck. Simple.
Let’s break it down with numbers.
Say the sales manager’s salary is KSh 1,200,000 a year (about $9,300 USD in April 2025).
At 20%, the agency pockets KSh 240,000 (roughly $1,860).
One placement. One fat check.
Now imagine they do this 10 times a month.
That’s KSh 2.4 million ($18,600) without breaking a sweat.
Why It’s a Win for Agencies
This model’s low risk for employers—they only pay for results.
But for agencies? It’s a goldmine if they’ve got a solid talent pool.
The best ones—like Corporate Staffing Services or Flexi Personnel—have databases stacked with pre-vetted candidates.
They’re not starting from scratch; they’re just matching puzzle pieces.
Less work, more reward.
- Pro Tip for Job Seekers: Agencies don’t charge you because the employer foots the bill. If someone’s asking you for cash to “get you a job,” run. That’s a scam, not a legit agency.
- Pro Tip for Employers: Negotiate the percentage upfront. Some agencies will flex if you’re hiring in bulk.
I talked to a friend who runs a small agency in Nairobi.
Last month, he placed a logistics coordinator for a mid-sized firm in Westlands.
Salary: KSh 800,000 annually.
Fee: 18%.
He walked away with KSh 144,000 for two weeks of work.
Not bad for a guy sipping chai while scrolling CVs, right?
That’s how recruitment agencies make money in Kenya—hustle smart, not hard.
Method 2: Temporary Staffing
This is where agencies flex their muscles as middlemen.
It’s less glamorous than landing a C-suite exec, but it’s a steady drip of cash—and in Kenya, it’s picking up steam.
How It Works
Companies need workers fast—think seasonal retail staff during Christmas or a receptionist to cover maternity leave.
The agency hires the worker, puts them on their payroll, and “lends” them to the client.
The client pays the agency an hourly rate—say KSh 500 per hour.
The agency pays the worker KSh 400, pocketing KSh 100 per hour as profit.
That’s called the markup, and it’s usually 20-50% above the worker’s wage.
Scale that up.
One temp works 40 hours a week.
That’s KSh 4,000 profit per week for the agency.
Got 20 temps out there?
That’s KSh 80,000 weekly—KSh 320,000 a month—just for playing matchmaker.
The Hidden Bonus: Temp-to-Perm Fees
Here’s where it gets juicy.
If the client likes the temp and hires them permanently, the agency often charges a conversion fee.
It’s like a finder’s fee for proving the worker’s worth.
In Kenya, this can be 10-15% of the annualized salary.
So, a KSh 600,000-a-year hire nets them another KSh 60,000-90,000 on top of the hourly profits.
Agencies use platforms like Zoho Recruit or Jobvite to manage temp placements. Streamlines the chaos.
Employers, ask about markup rates upfront. Job seekers, confirm you’re paid fairly—agencies shouldn’t skimp on your cut.
Why It’s Booming in Kenya
Kenya’s gig economy is exploding.
Retail, hospitality, and logistics firms need flexible labor.
Agencies like Sheer Logic Management have tapped into this, supplying temps to big players like Safaricom or Naivas.
I met a temp worker at a supermarket in Karen last year—hired through an agency for the holiday rush.
She worked three months, the agency made bank, and she got a foot in the door.
Win-win-win.
That’s how recruitment agencies make money in Kenya when permanence isn’t the goal.
Method 3: Retained Search – The High-Stakes, High-Reward Play
Retained search is the VIP lane of recruitment.
It’s how agencies snag the big fish—executives, specialists, the folks who don’t just apply on BrighterMonday.
And it’s a premium service with a premium paycheck.
How It Works
A company needs a CFO or a tech lead—someone critical.
They don’t want a shotgun blast of CVs; they want a sniper shot.
The agency signs an exclusive deal, gets paid upfront (usually a third of the fee), and goes hunting.
The total fee? Often 25-30% of the hire’s first-year salary, split into installments:
- One-third to start.
- One-third when they shortlist candidates.
- One-third when the hire signs.
For a CFO pulling KSh 5,000,000 a year, that’s KSh 1,250,000-1,500,000 for the agency.
Cha-ching.
Why Companies Pay Up
Time and precision.
A bad exec hire can tank a company—costing millions in lost revenue or botched strategy.
Agencies like Summit Recruitment & Search specialize in this.
They’ve got networks deeper than Nairobi traffic jams and headhunt talent who aren’t even looking.
The upfront cash locks in their focus—no distractions, no competing clients.
- Pro Tip for Employers: Use retained search for roles where failure’s not an option. It’s pricier but safer.
- Pro Tip for Job Seekers: Want in on these gigs? Build a killer LinkedIn profile—agencies scour it for retained searches.
A buddy of mine worked with a retained agency to land a COO role in Mombasa.
The company paid KSh 900,000 total—split three ways over four months.
The agency spent weeks digging through contacts, poaching from competitors, and vetting my friend like he was applying for MI6.
He got the job, the company got their guy, and the agency laughed all the way to the bank.
That’s how recruitment agencies make money in Kenya when the stakes are sky-high.
Bonus Revenue Streams for Recruitment Agencies To Make Money in Kenya
Before we wrap, let’s talk extras.
The smartest agencies don’t stop at placement fees.
They’ve got side hustles that pad the bottom line.
a). HR Services and Training
Some offer CV writing, interview coaching, or psychometric testing.
Corporate Staffing Services charges KSh 5,000-15,000 for a pro CV rewrite.
Small potatoes per client, but it adds up when you’re serving hundreds.
They also train temps or new hires for clients—another KSh 20,000-50,000 per session.
b). Job Board Listings
Agencies like Flexi Personnel run job boards or partner with sites like MyJobMag.
Employers pay to post—KSh 10,000-30,000 per listing.
It’s passive income while they focus on bigger fish.
Why It Matters
These extras turn a good agency into a great one.
More revenue streams mean more stability—and better service for you.
Next time you’re dealing with an agency, ask what else they offer.
Might save you a headache.
Wrapping It Up – What You Need to Do Now
So, how do recruitment agencies make money in Kenya?
Three words: contingency, temp, retained.
- Contingency fees for the quick wins.
- Temp staffing for the steady grind.
- Retained search for the big scores.
Throw in some HR extras, and they’re printing cash while you’re still drafting that job ad.
For job seekers: Use agencies—they’re free for you.
For employers: Pick the model that fits your need and budget.
Either way, stop guessing and start acting.
The Kenyan job market waits for no one.
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