Kenya

Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Kenya. See a sample of popular sections below.

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Termination of Employment

The labor law delineates the types of notices required for different employment contracts. The notice must be given in writing in all cases, but an agreement between employees and employers can increase its duration.

There is also a provision for payment in lieu of notice, which is permitted for terminated contracts with wages paid in intervals over 1 month. In this case, the employer must pay the terminated employee the amount they would have earned during the notice period before termination.

Employers are not required to give employees a notice period if the employee is dismissed for gross misconduct.

Work Permits

All foreign citizens must be in possession of a work/resident permit or an exemption before accepting employment in Kenya. Categories of permits include:

Class A - Miners or those prospecting for minerals
Class B - Agriculture and animal breeding industry prospects
Class C - Prescribed profession
Class D - Employee offered employment
Class F - Specific manufacturing (proof of investment is necessary)
Class G - Investors in a specific trade, business, or consultancy (proof of investment is necessary)
Class I - Work/residence permit for a missionary pre-approved by the Government of Kenya
Class K - Residence permit for individuals at least 35 years old with foreign income who will not undertake paid employment in Kenya (proof of foreign income is necessary).
Class M - Conventional refugees
Class N - Digital nomads who work under an employment contract for a company registered outside Kenya, or offer services as a self-employed to clients who are located outside Kenya

Paid Annual Leave

Under Kenya’s Employment Act of 2007, all employees are entitled to at least 21 days of annual leave for every 12 months of continuous service remunerated at the employee’s full, regular pay rate. Employees whose contracts of employment are terminated before they reach a period of 12 months of consecutive service accumulate annual leave based on the rate of 1.75 days of leave per month of continuous employment. Taking full maternity leave in a year does not forfeit an employee’s annual leave.

Working Hours

In Kenya, the standard workweek cannot exceed 52 hours over 6 working days. For persons employed in night work, weekly working hours cannot exceed 60. All employees are entitled to at least 1 day of rest every 7 workdays.

Maternity Leave

Female employees are entitled to 3 months of maternity leave with full pay. Upon agreement with their employer, they may extend their maternity leave beyond the allocated 3 months should complications arise during or after childbirth. The employee must provide the employer with at least 7 days written notice stating the start date of their maternity leave and the date of return to work.

Employers are prohibited from dismissing employees on the grounds of pregnancy.

Minimum Wage

The current minimum wage rates range from KES 9,196.93 (Kenyan shillings) to KES 40,724.23 per month and differ based on industry, job grade, and geographic region.

Employers' failure to pay the statutory minimum wage is considered an offense, punishable by a fine of up to KES 100,000 and imprisonment of up to 6 months.

According to the Employment Act of Kenya, employers are required to pay wages as follows:

In the case of a casual employee, at the end of the day
In the case of an employee employed for a period of more than a day but not exceeding 1 month, at the end of that period
In the case of an employee employed for a period exceeding 1 month, at the end of each month or part thereof
In the case of an employee employed for an indefinite period or on a journey, at the expiration of each month or of such period, whichever date is the earlier, and on the completion of the journey, respectively

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Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Kenya.

Type of Employment Relationship
Permanent Employment
Fixed-Term or Specific-Purpose Contracts
Temporary Employment Contracts
Part-time Employment
Young Worker Employment
Vendors and Independent Contractors
Types of Contracts
Probationary Period
Termination of the Contract of Employment
Grounds for Termination
Notice of Dismissal
Fair Dismissal
Redundancy
Unfair Dismissal
Suspension of Contract of Employment
Severance Benefits
Hours of Work
Work Week and Timekeeping
Night Work and Shift Work
Overtime
Remote Work
Required Time Off
Public Holidays
Annual Leave
Sick Leave
Maternity
Other Forms of Leave
Social Insurance and Retirement
Social Security Contribution
National Retirement Scheme
Dependents’/Survivors Benefit
Life and Disability Insurance/Benefit
Statutory Allowances
Compensation and Benefits
Minimum Wage (Basic Wage)
Bonuses, Profit Sharing and Other Compensation
Medical Insurance
Work Environment
Workplace Safety and Health
Prohibition of Discrimination
Prohibition of Harassment
Data Protection and Privacy
Whistleblowers and Retaliation
Workers’ representation in the organization
Freedom of Association
Registration and Recognition of Unions
Trade Union Personality
Collective Bargaining and Agreements
Disputes and Settlements
Strikes and Lockouts
Unfair Labor Practices
Taxation of Compensation and Benefits
Income Tax
Taxation of Employee Benefits
Tax Filing and Payment Procedures
Double Tax Relief and Tax Treaties
Visas and Work Permits
Visas
Work Permits and Residence Permits

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