Workforce Guide in Kenya

In Kenya, employment is governed by the general law of employment contracts as well as the common law principle. Here, people see employment as a one-on-one relationship between the employee and the employer. Both the Kenyan constitution of 2010 and the Employment Act of 2012  clearly state that employees' and workers' rights must be protected. As a result, Kenyan employees are protected from discrimination based on their age, religion, sexual orientation, articulation, and race. 

Some of the things to consider during the hiring process in Kenya include minimum wages, public holidays, overtime rates, and compulsory leaves.

Capital City

Nairobi

Currency

Kenya Shilling (KES)

Language Spoken

English, Swahili

Payroll Frequency

Monthly

Employer Taxes

10% - 30%

VAT - Standard Rate

16%

Cost of Living Index

41.12

GDP - Real Growth Rate

6.05%

Termination Process

Varies

Employee Protection

Moderate

Minimum Wage

Rwanda’s Ministry of Public Service and Labour sets the minimum wage, currently at 130,000 RwF per month as of 2023. This applies to all workers including those in the private sector.

Payroll Cycle

In Rwanda, payment is flexible and is determined by the individual employee and employer agreement. Depending on the mutual agreement between the two parties, payment can be daily for hourly workers, weekly and monthly.

However, wages must be paid within seven days of the designated pay period, with the sole exception of the daily workers who receive their pay daily. The employers are obligated to deposit the salaries into bank or financial institution accounts designated by the employee in writing.

Taxation

Income Tax Rates

Monthly Taxable Income Exceeding (RWF)

Monthly Taxable Income Not Exceeding (RWF)

Rate on Excess %

0

360,000

0

360,000

1,200,000

20

1,200,000

-

30

Paternity Leave

Every female worker is entitled to 84 days (12 weeks) of fully paid maternity leave. Before the maternity leave is granted, the pregnant employee is required to present a medical certificate from a medical practitioner. This certificate must show the expected date for the pregnant employee’s confinement. In case of caesarean or abnormal births, the maternity leave is extended for two more weeks.

Paternity leave is not a legal provision in Ghana; however, in some instances, a one week leave can be granted by an organization upon a collective agreement..

1 January

New Year's Day

7 January

Constitution Day

6 March

Independence Day

29 March

Good Friday

1 April

Easter Monday

1 May

May Day (Workers’ Day)

10 April

Eid al-Fitr (Tentative Date)

26 December

Boxing Day

10 May

Labor Day

4 August

Founders’ Day

21 September

Kwame Nkrumah Memorial Day

6 December

Farmers’ Day

25 December

Christmas Day

Termination of employment in Ghana varies by organization, depending on the employment agreement and contract. Either the employer or the employee can terminate the job at any moment, although a written notice is required. In the event of an unfair termination, the employee might file a claim in labor court.

When an employment termination is considered 'at-will,' the worker or employee may terminate the position without notice. However, if the 'at will' language is omitted from the signed employment agreement, the employer is expected to pay the employee "in lieu of notice"

Notice Period

The Ghana notice period follows the following guidelines:
If the contract is three or more years, a one-month notice is required or a one-month pay in lieu.
If the employment contract is below three years, there is a need for a two weeks’ notice or pay in lieu worthy the two weeks.
If the contract was a weekly one, there is a need for seven days notice
If the contract is terminated willingly by either the employer or employee, no notice is required.