Employment laws in Kenya are complex and highly specific. Failing to comply can lead to fines, lawsuits, or worker disputes. Common challenges for new US employers include:

• Issuing contracts without mandatory terms

• Missing statutory deductions

• Overlooking written sexual harassment policies once headcount passes 20

• Miscalculating overtime or holiday pay

• Terminating employees improperly

Employment law in Kenya is shaped by contract law and common law. Employment is treated as a private agreement—but that doesn’t mean you can skip statutory rules. This guide walks through everything from contract types to termination, benefits, and required policies.

What basic rights do employees have under Kenyan law?

• The right to fair wages and working conditions

• Protection from forced or child labor

• Paid leave (sick, annual, public holidays, maternity/paternity)

• Anti-discrimination protections

• Proper notice and severance in case of termination

• The right to join trade unions

Terms and conditions of employment contracts

Employment Act and Regulation of Wages and Conditions of Employment Act

These laws cover wages, hours, leave, termination, working conditions, and protections for vulnerable groups such as women and children.

Forced labor

The Employment Act prohibits any form of labor extracted by threat. Exceptions include civic duties, military service, disaster response, or court-mandated community service.

Child labor

Children under 13 cannot work. Minors under 18 cannot do hazardous jobs. Employers must verify age and maintain documentation.

Working hours

• Max: 52 hours per week (day) or 60 hours (night)

• Overtime: Paid at 150% of base hourly rate

• Hourly rate calculated as 1/225 of monthly wage (if salaried)

Minimum wage

There is no general minimum wage. Wages vary by profession, location, and experience. Examples: agricultural workers vs. teachers.

Paid leave

• Annual leave: 21 paid working days after 12 months; pro-rated for shorter service

• Public holidays: 14 official holidays

• Sick leave: 14 days per year after 2 months. First 7 days at full pay, next 7 at half pay. Medical certificate required.

• Maternity/paternity leave:

  • Mothers: 3 months at 100% pay

  • Fathers: 2 weeks at 100% pay

  • Cannot dismiss a worker while on leave

Discrimination

Section 5 of the Employment Act prohibits discrimination based on:

• Race, sex, religion, political opinion, ethnicity

• Pregnancy, disability, HIV status, mental condition

Sexual harassment

Any company with 20+ employees must implement a written sexual harassment policy, train staff, and create an internal complaint process.

How to legally terminate an employee in Kenya

To legally dismiss an employee:

1. Provide a valid reason (e.g. misconduct, redundancy, or breach of contract)

2. Issue a written notice

3. If redundancy, notify employee + union 30 days prior

4. Document everything (especially for performance or misconduct)

5. Pay final salary, leave owed, and severance (if required)

6. Provide a certificate of service

Summary dismissal is only valid for gross misconduct and must be well-documented. Dismissals must follow due process.

What notice period is required?

• Casual contracts: 7 days

• Standard contracts: 28 days (or pay in lieu)

Termination by notice must be mutual or contractual.

Occupational Health and Safety Act

Employers must ensure:

• Safe handling and storage of materials

• Safety training and PPE

• Clear procedures for workplace risks

Labour Relations Act

The Labour Relations Act protects workers’ right to:

• Join unions

• Participate in legal strikes

• Negotiate collective agreements

• Resolve disputes fairly

Work Injury Benefits Act (Cap. 253)

If a worker is injured or killed on the job, these laws apply:

• Permanent disability: Lump sum = 96 months of wages

• Partial disability: Lump sum = 60 months (max: 240,000 KES)

• Temporary disablement: 50% of average earnings for certified period

Fatal injury: 60 months of earnings paid to dependents + funeral grant

Contracts of employment 📑

Contracts must be written if the employment lasts over 3 months. They must include:

• Employee and employer names

• Job title and duties

• Work hours

• Compensation structure

• Contract type: fixed, task-based, casual, or indefinite

• Benefits and payment frequency

Types of contracts

• Unspecified period: Ongoing employment, terminable with notice

• Specified period: Ends automatically on a set date

• Task-based: Ends when the project is complete

Casual: ≤24 hours, paid daily

The importance of compliance ✅

Every country has different rules. In Kenya, small mistakes (e.g. forgetting a holiday, skipping severance) can lead to legal trouble. Staying ahead on contracts, deductions, and documentation is essential for compliant hiring.

Frequently asked questions

What types of contracts are legal in Kenya?

Kenya recognizes indefinite, fixed-term, task-based, and casual contracts. Any contract over 3 months must be in writing.

Can I hire contractors in Kenya without offering benefits?

Yes, but you must ensure they meet the legal threshold for contractors. If they behave like employees (hours, equipment, control), they may be reclassified.

What’s the minimum wage in Kenya?

Kenya doesn’t have one national rate. Wages vary by region and role—urban workers and skilled professionals typically earn more.

How many public holidays are there in Kenya?

Kenya observes 14 public holidays each year, covering national, religious, and cultural celebrations.

Is maternity leave paid in Kenya?

Yes. Female employees are entitled to 3 months of paid leave at 100% pay. Employers cannot terminate someone on maternity leave.

What documents should be included in a written employment contract?

A written contract should include the employee’s name, address, job description, start date, hours, pay, benefits, and termination terms.

Legal Disclaimer: The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.