Employment (FAQs)

An employee can be offered casual (daily or piecemeal) employment, fixed term contract and open ended or permanent employment.

Kenya has statutory minimum wage orders that are periodically gazetted by the government. The applicable minimum wage is not a single flat national rate; it varies significantly based on the geographic location of your business and the specific sector or skill level of the worker.

Yes, employers are mandated under the Employment Act, 2007 to issue employees with employment contracts containing the terms of their employment.

Yes, employers are required to develop and issue policies relating to statement on the rights of the employee, disciplinary rules or policy, sexual harassment, disciplinary proceedings, data protection, health and safety, and anti-bribery and corruption.

Trade unions and the labour movement is vibrant and well developed in Kenya, typically, a union would need to be supported by 50% plus one employee before applying for recognition and registration as a representative union.

Yes, Kenya is a member of the International Labour Organisation (ILO) and has ratified and domesticated international labour standards and principles within the labour laws, practices and regulations.

Not yet. There have been initiatives to amend the Employment Act, 2007 to introduce a right to disconnect in Kenya but the same is yet to be passed into law. At the moment, employees have a right to take annual leave, sick leave, maternity leave and paternity leave as provided under the Employment Act.

No. Kenyan labour law is highly protective of employees. At-will employment does not exist. An employment relationship must be terminated after a fair disciplinary process and through a fair reason for the termination of the employment. 

Employers are legally obligated to deduct and remit PAYE (income tax) at the prevailing tax rates and brackets, National Social Security Fund (NSSF) contributions, Social Health Insurance Fund (SHIF) contributions, and the Affordable Housing Levy. For both NSSF and the Housing Levy, the employer is also required to make a matching contribution. Failure to make the payroll deductions could result in penalties, interest and regulatory action by government bodies.

Yes, employers can engage consultants on a contract for services. This means the consultant or contractor will be paid an agreed consultancy fee and will be responsible for his or her own tax obligations. However, we would urge caution in this engagement, if the tax authority or the courts deem the engagement of a consultant to be far from an arms-length engagement the consultant could be deemed as an employee forcing the employer to pay back pay in payroll taxes.

Yes, it is mandatory to always have and maintain a valid work permit before taking employment in Kenya. The Directorate of Immigration is strict in enforcing this requirement and any work outside their authorisation is illegal and can be the subject of criminal proceedings and forced repatriation.

While there is no strict statutory quota requiring a one-to-one ratio, the Directorate of Immigration Services rigorously enforces a skills-transfer policy. To secure and successfully renew a Class D work permit for a foreign employee, your business will generally be required to identify and train a local Kenyan understudy who is meant to eventually take over the expatriate's role. This requirement ensures that foreign investment actively contributes to local capacity building.

Non-compete clauses are scrutinized heavily by Kenyan courts and are only enforceable if they are reasonable in scope, geographical area, and duration. A court will strike down a non-compete clause if it is overly broad or essentially prevents a former employee from earning a livelihood in their profession.

Kenya enforces strict liability for workplace injuries under the Work Injury Benefits Act (WIBA). Employers are legally mandated to obtain and maintain a WIBA insurance policy for all employees. If an injury occurs during employment, the employee is entitled to compensation regardless of who was at fault, and failure to have this insurance is a criminal offense.

Yes, it is possible to declare redundancies and restructure a business provided that the strict redundancy process is followed.

Employment disputes are heard and determined by a specialised Employment and Labour Relations Court where judges sit and gazetted magistrates that is decentralised across the country to adjudicate over employment disputes.