Employer Record in Kenya

Basic information

Capital: Nairobi

Time zone: GMT+3

Languages: Swahili and English

Currency code: KES

Human Resources at a Glance 

Contract Terms

In Kenya, both oral and written contracts are recognized. A contract for a period of more than three months should be in writing. If a contract is written, there are some basic requirements. For example, it must include the following:

name and age of the employee
permanent address of the employee
name of the employer
job description
commencement date of employment
duration of the contract
workplace and hours of work
remuneration and frequency of payment
leave entitlement

Guidelines Regarding Probation Period/Trial Period

A probationary period must not be more than six months. It can be extended for a further period of not more than six months with the agreement of the employee.During the probationary period, either party may terminate the contract by giving at least seven days’ notice. Seven days’ wages in lieu of notice can also be offered.

Regulations and Rules Regarding Working Hours

Overtime payment is not mandatory for senior staff, as extra work hours are factored in their salaries.

Overtime payment is mandatory for junior staff. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 52 hours per week (12 hours of overtime).

For additional hours, employees are paid 1.5 times the regular hourly salary, and 2 times the regular hourly salary if they work overtime on a rest day or public holiday.

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.

Minimum Wage Requirements

The minimum wage is KES 13,572 per month.

Termination 

Grounds

Terminations in Kenya can be complex. There is no at-will termination in Kenya for employers, outside the probation period, and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on whether the employee:
  • Misconduct
  • Incapacity to work (for reasons relating to performance or sickness)
  • Redundancy
• By expiration of the contract

Notice Period

The minimum notice period is 1 month if wages are paid monthly, and may be increased based. There is no statutory requirement of notice period if wages are paid daily.

Severance Pay

Severance pay is only payable where termination is on account of redundancy, and is paid at the rate of 15 days for every year worked.

Payment & leave Compensation & Holidays 

SalaryPayment

Salary should be paid to the employee or to an authorized person in Kenyan currency.

Employers must provide payment for work performed before or on the agreed pay day. The payment made is usually calculated hourly, daily, weekly and monthly. This calculation will depend on the type of contract signed.

Payslip 

An employer is required to provide an employee with an itemized payslip before payment of wages or salary. This must contain remuneration for work and amounts that have been deducted in terms of taxes, insurance, NSSF requirements or due to any damages.

Electronic payslips are acceptable.

Annual Leave

Both full-time and part-time employees are entitled to 21 days of paid time off (PTO) a year. PTO accrues monthly, with 1.75 days of PTO per month. Employees are eligible for annual leave at the start of their employment as soon as it accrues.

Sick Leave

After 2 consecutive months of service with the Company, employees are entitled to sick leave of 30 working days with full pay and thereafter to sick leave of 15 working days with half pay in each period of twelve 12 consecutive months of service with the Company.

Some employers may provide a minimum sick leave of 14 days, depending on the category of the employee.

Maternity & Parental Leave

Pregnant employees are entitled to 3 months of paid leave. The employee will receive 100% of the salary during this period, and employer will be responsible for this pay.

Maternity leave cannot be extended.

In Kenya, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Tax and Social Security Information，Personal Income Tax

The individual income tax ranges from 10% to 30%. Income tax is calculated according to progress rates and the government uses a pay-as-you-earn model.

Gross Annual Income	Tax Rate (%)
On the first 288,000	10%
On the next 100,000	25%
On all remaining income in excess of 388,000	30%

Social Security

The National Social Security Fund (NSSF) is the largest social security scheme covering almost all of the formal labor force. NSSF is a state-administered provident fund though the government ensures that every worker is provided with minimum social security protection. All employers have to register with the fund and remit statutory contributions monthly.

The employer and employee each contribute 6% of the employee’s monthly earnings to NSSF. The upper monthly earnings limit is KES 18,000.

Public Holidays 2024

Occasion	Date
New Year’s Day	1.1
Good Friday	3.29
Easter Monday	4.1
Eid al-Fitr*	4.9
Labour Day	5.1
Madaraka Day	6.1
Eid gl-Adha	6.17
Huduma Day	10.1
Mashujaa Day	10.2
Mashujaa Day Holiday	10.21
Jamhuri Day	12.12
Christmas Day	12.25
Utamaduni	12.26