Kenya: Overview of Labour Laws and Employment Policies

Overview of Employment Laws

• Key Legislations:
  • Employment Act, 2007
  • Labour Relations Act, 2012
  • Social Security Act, 2015
• Legal Characteristics: These laws aim to protect employees' rights and promote fairness and harmony in the workplace.

Employment Contract Requirements

• Contract Types:
  • Indefinite contracts
  • Fixed-term contracts (maximum 3 years)
• Contractual Terms: Must include provisions on:
  • Job description
  • Remuneration
  • Working hours
  • Leave
  • Termination conditions
• Language and Currency: Contracts must be in the employee's language and denominated in Kenyan Shillings (KES).

Working Hours Regulations

• Standard Working Hours: 45 hours per week, Monday to Friday
• Rest Days and Breaks: At least one rest day per week, and a minimum of 30 minutes break after every 5 hours of work.

Leave Policies

• Annual Leave: 21 days of paid annual leave per year
• Public Holidays: 13 statutory public holidays
• Special Leaves:
  • Sick leave: 14 days per year after 2 months of continuous service, first 7 days on full pay, remaining on half pay
  • Maternity leave: 3 months on full pay
  • Paternity leave: 2 weeks on full pay
  • Adoption leave: 1 month on full pay

Employee Termination and Contract Termination

• Notice Periods:
  • During probation: 7 days
  • Monthly or longer paid employees: 28 days
• Severance Pay: Payable only in cases of redundancy, calculated at a rate of 15 days' pay for each year of service.
• Unfair Dismissal Protection: Employees are protected from dismissal based on discrimination, trade union activities, or whistleblowing.

Tax Laws

• Personal Income Tax:

  • Salary Range (KES)	Tax Rate
    0 - 288,000	10%
    288,000 - 388,000	25%
    Over 388,000	30%

• Social Security Contributions:

  • Employee: 6%
  • Employer: 7%

Health Insurance

• Insurance Policy: National Hospital Insurance Fund (NHIF) provides basic healthcare coverage for all employees.
• Coverage: Inpatient, outpatient, and pharmaceuticals.

Remuneration and Benefits

• Minimum Wage: KES 13,572 per month
• Salary Structure: Typically includes basic salary, bonuses, and allowances.

Work Permits and Visas

• Permit Requirements: Foreign employees require work permits and residence visas.
• Application Process: Through the Kenyan Immigration Department.

Confidentiality and Non-Compete Clauses

• Enforceability: Confidentiality and non-compete clauses are enforceable in Kenya, but must be reasonable and not unduly restrict an employee's employment opportunities.
• Common Provisions: Restrict employees from using or disclosing confidential information and engaging in competitive activities after leaving employment.

Training and Development

• Legal Requirements: Employers must provide safety training and opportunities for skills development to employees.
• Government Support: Government provides training funds and programs to support employee development.

Workplace Diversity and Inclusion

• Legal Requirements: Discrimination based on race, gender, religion, or disability is prohibited.
• Enforcement: The Equal Opportunities and Anti-Discrimination Commission is responsible for enforcing these laws.

Remote Work Policies

• Legal Framework: No specific legal framework, but employers can establish their own remote work policies.
• Tax and Insurance Implications: Remote work may impact employees' tax and social security obligations.

Authoritative Website Addresses

• Kenyan Ministry of Labour: https://www.labour.go.ke/