Employment law in Kenya: an employer's guide to the rules that matter most

Most employment disputes are not about unusual law. They are about ordinary rules that were not followed or could not be proved. This guide sets out the rules that matter most to an employer, with the section numbers, so you can check them against the Employment Act yourself. Each part links to a deeper article.

The legal framework

Employment in Kenya is governed mainly by:

• The Constitution of Kenya, which protects fair labour practices
• The Employment Act, 2007
• The Labour Relations Act, 2007
• The Labour Institutions Act, 2007, under which the minimum wage orders are made
• The Occupational Safety and Health Act, 2007 and The Work Injury Benefits Act, 2007
• The National Social Security Fund Act and the Social Health Insurance Act for statutory contributions
• The Data Protection Act, 2019, because employee records are personal data

Contracts and records

• A contract for three months or more, or for work that cannot reasonably be finished in three months, must be in writing (section 9).
• Written particulars of employment, such as pay, hours, leave and notice, must be given within two months of the start (section 10).
• The written particulars must be kept for five years after the employment ends (section 10(6)). If you cannot produce them in a dispute, the burden of proving the terms falls on you (section 10(7)).
• Every employee must receive an itemised pay statement (section 20), and employers must keep records of leave, sick leave, warning letters and more (section 74). More in Leave on paper, records in drawers on our Nexalia site.

Pay and deductions

• Wages must be paid in full, and deductions are limited to those the Act allows (sections 17 and 19). Total deductions at any one time cannot exceed two thirds of the wages (section 19(3)).
• Minimum wages are set by occupation and area. The 2026 order took effect on 1 May 2026. See the 2026 minimum wage order.
• An employer that deducts amounts for a pension scheme, tax or another authorised purpose must pay them over as required, and failing to do so is an offence (section 19(4) and (5)).

Leave

• Rest: at least one rest day in every seven days (section 27).
• Annual leave: not less than 21 working days with full pay after every twelve consecutive months (section 28).
• Maternity leave: three months with full pay. Paternity leave: two weeks with full pay (section 29).
• Sick leave: after two consecutive months of service, seven days at full pay and then seven days at half pay in each twelve months, subject to a medical certificate, and the employee must tell the employer as soon as reasonably practicable (section 30). See Sick leave is not desertion.

Ending employment

• Notice. A monthly-paid employee on an open-ended contract is entitled to 28 days' written notice unless the contract gives longer (section 35).
• Hearing. Before ending employment for misconduct, poor performance or physical incapacity, you must explain the reason, allow the employee to bring a colleague, and consider their response (section 41). See Dismissing for poor performance.
• Reasons. You must prove the reason, and it must be the reason you genuinely held at the time (section 43). See The reason in your termination letter.
• Unfair termination. A termination is unfair unless you prove a valid and fair reason and a fair procedure (section 45).
• Protected reasons. Pregnancy, taking or proposing to take leave, trade union activity, a complaint against the employer and several other reasons are not fair reasons (section 46). See Removing an employee from the WhatsApp group.
• Redundancy. Written notice to the union or employee and the labour officer at least a month ahead, fair selection, leave paid in cash, a month's notice or pay, and severance of not less than 15 days' pay per completed year (section 40). See Redundancy is not a shortcut.
• Casuals. Casual work that runs for a month or more, or on work that cannot reasonably be completed within three months, is treated as monthly-paid employment (section 37). See Casual today, permanent in law.
• Certificate of service. Issue one on exit (section 51).

When there is a dispute

• An employee dismissed summarily or unfairly may complain to a labour officer within three months (section 47) and may also go to the Employment and Labour Relations Court.
• The court can award compensation of up to twelve months' gross pay for unfair termination (section 49), as well as other amounts, and in serious cases damages for breach of constitutional rights.
• Civil claims under the Act generally have to be brought within three years (section 89).

Statutory contributions

NSSF contributions are 6% from the employee and 6% from the employer. From February 2026 the lower earnings limit is KES 9,000 and the upper earnings limit is KES 108,000. See Ghost workers and payroll controls for how to keep payroll deductions honest.

A practical first step

Pick the three areas where a dispute would hurt most (usually termination letters, leave records and casual staff), and check each one against the sections above.

This guide is general information for employers and is not legal advice. Check the current text of each Act on Kenya Law, as amendments can follow.

Not sure where your gaps are?

Partner with Scorelian Business Solutions for:

• HR audit and compliance review
• Employment contracts, policies and templates
• Payroll review and statutory advisory
• Training for managers and HR teams

Read more about our Labour Compliance service.

Start with our free Business & People Systems Health Check, or email info@scorelian.com.

Scorelian Business Solutions: People • Systems • Technology • Growth.