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Currency
Sh or Shs (pl.) (KES)
Working Hours
45/Week
Kenya is in eastern Africa on the Indian Ocean, between Somalia and Tanzania. Kenya is the economic, commercial, financial, and logistics hub of East Africa with a large, fast growing, economy It boasts a strong agriculture sector with emerging services and tourism industries. The labor force in Kenya is around 25 million people.
Employment contracts in Kenya can be either oral or written and for an indefinite or fixed term. A written contract is required for any work that exceeds three months. Employment contracts must be in the language of the employee. If the employee is illiterate, the contract must be explained to the employee in a language they understand.
Amendments to the employment contract including but not limited to leave and other benefits, payment methods and work location, must be in writing and provided to the employee within a month of the change. Employers are required to keep a copy of an employee's files for five years after termination.
The standard workweek in Kenya is 45 hours per week.
The New Labour Law states that employees should not work more than 56 hours per week and the maximum overtime per day should not exceed 4 hours. There are also new laws for shift work patterns.
Overtime
Overtime is paid at the rate of 150% of regular pay. The New Labour Law requires employers to provide extra pay to employees who work during night hours (between 10pm and 6am) if time off in lieu is not provided. The pay amount must be not less than 1.2 times the regular hourly salary.
Maternity Leave
Women are entitled to three months of maternity leave paid at 100% of the regular pay rate. To be eligible, the woman must give at least seven days’ notice to their employer when the leave is intended to be taken and must provide a medical certificate. In the event of adoption, the same laws for maternity and paternity leave apply. However, instead of seven days’ notice, 14 days’ notice must be given to the employer.
Paternity Leave
Fathers are entitled to two weeks of paid paternity leave.
Parental Leave
Fathers are entitled to 2 weeks paid paternity leave.
Parents who are preparing to adopt a child are eligible for one month of pre-adoptive leave with full pay. Parents must provide 14 days’ notice to their employer and show the relevant adoption papers.
Kenya has a national healthcare system. Private insurance is recommended.
Employer Payroll Contributions
420 KES-National Social Security Fund (NSSF) -Tier 1 for income up to 7000 KES (Monthly)
6.00%-National Social Security Fund (NSSF) – Tier 2 applied on income between 7,000 KES- 36,000 KES (Monthly)
1.50%-National Housing Development Fund (NHDF)
50 KES per employee-National Industrial Training Levy (NITA)
7.5%+470 KES-Total Employment Cost
Employee Payroll Contributions
420 KES-Tier 1 for income up to 7000 KES (Monthly)
6.00%-National Social Security Fund (NSSF) – Tier 2 applied on income between 7,000 KES- 36,000 KES (Monthly)
1.50%-National Housing Development Fund (NHDF)
150- 1,700 KES-National Hospital Insurance Fund (NHIF) (per employee earning more than 100,000 KES per month- with effect from 1/1/2022 tax relief will be applicable at 15% of the amounts contributed)
7.5% + 2,120 KES-Total Employment Cost
Income Tax
10.00%-On the first 288,000 KES per year
25.00%-On the next 100,000 KES per year
30.00%-On the next 5,612,000 KES per year
32.5%-On the next 3,600,000 KES per year
35.00%-On all income over 9,600,000 per year
Payroll Cycle
In Kenya, the payroll frequency is monthly. Work between the first and last day of the month is typically paid on the last day of the month. Casual employees are to be paid at the end of the workday.
13th Salary
There are no provisions in the law for a salary bonus.
The standard VAT rate is 16%.
The monthly minimum wage varies depending on industry and geographical location and ranges from 13,572.90 KES for a cleaner or gardener to 30,627.45 KES for a cashier or heavy commercial driver.
After two consecutive months of service, employees are entitled to sick leave of up to 30 days at full salary followed by 15 days at half salary in each period of 12 consecutive months of service.
All sickness leave requires a professional medical certificate of incapacity to work.
An employee is entitled to a minimum of 21 days of paid annual leave after completing one year of employment. Under the New Labour Law, new employees are entitled to annual vacation from the 7th month of their employment commencement.
An employer may with the employee’s consent, divide the minimum annual leave entitlement into different parts to be taken at different intervals, however, the New Labour Law entitles an employee to 10 consecutive calendar days of leave at least once out of the minimum 15 calendar days leave.
Public holidays that fall on a Sunday are moved to the following Monday as a day off in lieu.
The religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.
Date Day Holiday Notes
1 Jan 2024-Monday-New Year’s Day
29 Mar 2024-Friday-Good Friday
1 Apr 2024-Monday-Easter Monday
10 Apr 2024-Wednesday-Idd ul Fitr
1 May 2024-Wednesday-Labour Day
10 May 2024-Friday-National Tree Growing Day
1 Jun 2024-Saturday-Madaraka Day
17 Jun 2024-Monday-Idd ul Azha-Tentative
10 Oct 2024-Thursday-Moi Day
20 Oct 2024-Sunday-Mashujaa Day
21 Oct 2024-Monday-Mashujaa Day Observance
31 Oct 2024-Thursday-Diwali-Tentative
12 Dec 2024-Thurday-Jamhuri Day
25 Dec 2024-Wednesday-Christmas Day
26 Dec 2024-Thursday-Boxing Day
Employers can terminate employees’ employment for the following reasons –performance, redundancy, and any other substantial reason that may justify dismissal,or worker misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given with the employee given a chance to explain his/her actions.
When the employer initiates the termination of an employment agreement, the employer must pay final wages on the termination date.
Notice Period
Notice periods in Kenya are as follows:
Employees terminated during the probationary period should be given at least seven days’ notice.
If the employee is being paid daily, notice is not required.
If the employee is being paid periodically (weekly or bi-weekly), the notice is one week or two weeks, accordingly.
If the employee is being paid monthly a month’s notice is required.
Severance Pay
Severance pay is payable at the rate of 15 days for every year worked and is only payable in cases where termination is on account of redundancy. In cases of termination for other reasons other than redundancy, service pay is payable at a rate equal to that of severance pay.
Probation Period
The probation period in Kenya is cannot be more than to six months, and can be extended up to an additional 6 months, with the employee’s consent. A probationary contract must be in writing and state it is for a probationary period. If the employer dismisses the employee during this time, seven days’ notice or payment in lieu must be given. A probationary worker’s base salary must be the same as the base salary of the same position.
Kenya’s immigration system provides several options for employers of foreign nationals. Most business travelers must apply for an eVisa to enter the country. Port-of-entry immigration officers will determine the authorized length of stay in Kenya, which is usually a maximum of 30 days, extendable twice for 30 days each at the Immigration Department in Kenya for a maximum of 9 0 days .
The Special Pass allows foreign nationals to conduct work activities for up to 90 days. Special Pass applications are filed at the Kenya Immigration Department Headquarters before the foreign national travels to Kenya.
The long-term work permit (Class D Permit) is suitable for skilled and experienced professionals or technical workers and it requires sponsorship from a Kenyan legal entity. Work permits are issued for one or two years and can be renewed for similar periods.
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Local Laws & Regulations
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
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