Contracts, hours and leave - the Monday-morning version
Written terms are required for engagements over three months. Annual leave is at least 21 working days after twelve consecutive months of service; sick, maternity (three months) and paternity (two weeks) leave each carry qualifying conditions, alongside public holidays. Turn each rule into practice: who qualifies, for how long, what to record - and get the acknowledgement on file. General information, not legal advice.
Probation, discipline and termination - where cases are won and lost
Probation caps at six months. Discipline and termination follow the Section 41 procedure - reason explained in understandable language, right to respond with a fellow employee or union representative present, everything documented. Kenyan courts have repeatedly treated poor performance as something an employer must prove, not assert: appraisals, written expectations and a fair hearing are the evidence. If your process lives in memory, it will not hold up.
Redundancy, casual conversion and certificates of service
Redundancy carries notice and terminal-dues duties, including severance of at least fifteen days' pay per completed year alongside notice and accrued leave. Casual engagements convert to term contracts under Section 37 - know the triggers before they trigger. Employees are entitled to a certificate of service on exit; fair, respectful exits also tell the people who stay what to expect.
Statutory deductions reference (October 2026 rates)
This is the dated reference behind the figures - for the month-by-month rhythm of what is due when, see the HR compliance checklist. PAYE bands start at 10% on the first KES 24,000 a month with personal relief of KES 2,400; NSSF is 6% to the February 2026 ceiling of KES 108,000; SHIF is 2.75% (minimum KES 300) since replacing NHIF in October 2024; the Housing Levy is 1.5% plus 1.5%; NITA is KES 50 per employee per month. Confirm current figures against KRA, SHA and NSSF notices before acting. Where HappeeHR helps: deductions tracked against current rates, with changes flagged when they move.
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Put the law into practice.
See how HappeeHR carries the admin load - contracts, leave tracking, deductions and termination trails. General information on this page, not legal advice.
- 2007
- the Employment Act translated here (sample)
- 21+
- annual leave days explained in plain English (sample)
- 12
- months' wages at stake in unfair termination (sample)
Frequently asked questions
How many days of annual leave apply in Kenya?
At least 21 working days per year after twelve consecutive months of service. Track accrual per employee so balances are never a guess.
Can I terminate on probation without notice?
Probation still requires the Section 41 basics - a stated reason and a chance to respond, with a witness present. Probation caps at six months; track end dates so no one drifts past. General information, not legal advice.
What is the penalty for late NSSF payment?
Late remittance attracts penalties and interest on the outstanding amount. Payroll that remits on schedule keeps you clear - confirm current penalties with NSSF or your accountant.
How much notice is required to terminate?
Notice depends on the pay interval and contract terms, running from days to a month or more. The documented workflow tracks notice per termination.
What are maternity and paternity leave entitlements?
Three months of maternity leave and two weeks of paternity leave with full pay, subject to qualifying conditions. Plan cover early.
What is redundancy pay in Kenya?
Redundant employees are owed notice (or pay in lieu), accrued leave and severance of at least fifteen days' pay per completed year. Get the computation right before announcing - and take advice on your specific case.
What remedies exist for unfair termination?
Courts can award compensation of up to twelve months' wages for unfair termination under Section 49 - which is why the Section 41 paper trail matters so much. General information, not legal advice; confirm your matter with a qualified advocate.