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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, medical insurance, group life insurance, leave managent, contract management and overtime management and calculations.
Minimum Wage
Several variables define minimum wage in Kenya, including geographical location, skill level, the industry one is engaged in, and age. Usually, the minimum wage ranges from 13,572.90 to as high as 30,627.45 KES.
Payroll Cycle
Employee payments in Kenya are made in monthly installments on or before the last day of the month.
Casual Employees are paid either at the end of the workday or weekly.
Taxation
|
Taxable Revenue (KES) |
Rate of Tax (%) |
|---|---|
|
First 288,000 |
10 |
|
Next 100,000 |
25 |
|
Next 5,612,000 |
30 |
|
Next 3,600,000 |
32.5 |
|
Above 9,600,000 |
35 |
*The above tax rates are effective from 1 July 2023.
Annual Leave
Employees are entitled to 21 consecutive days of paid time off after working with an employer for 12 months.
Sick Leave
After two months of employment, an employee is eligible for 14 days of paid leave. 7 days are paid in full, while the other half is paid half the salary. The 14 days are renewed annually, and a medical certificate is required during the sick leave application.
Maternity Leave
Women are entitled to 91 days of maternity leave. The employer fully pays the employee during these days. To qualify for maternity leave, the employee must give a written seven days notice. Additionally, the employee must provide a medical certificate during the leave application.
Paternity Leave
Fathers can take a 14 days paternity leave with full pay to take care of their postpartum partner.
Adoption Leave
If an employee decides to adopt a child, the same law of the birth parents applies. But, the employee gives a 14 days' notice instead of 7 days. Relevant adoption documentation must be provided during the leave application.
1 June
Madaraka Day
26 December
Boxing Day
10 October
Mazingira Day
20 October
Mashujaa Day
21 October
Mashujaa Day observed
12 December
Jamhuri Day
25 December
Christmas Day
Termination of employment in Kenya can either be from the employee or the employer. However, a lawful termination can only occur if a just cause has been established. Some of the reasons for contract termination by the employer may include business, worker's misconduct, and personal reasons. The employer should give an employee a warning in case of misconduct, while the employee must explain their actions.
Terms to observe in employment termination include notice period, severance pay, and probation.
Notice Period
An employer must provide at least a 28 days written notice before the contract termination. However, at least seven days' notice of termination is required for employees on probation.
Probation Periods
A probation period can go up to 6 months. During this period, the employer can terminate an employee provided they give a seven days' notice.
Severance Pay
It only applies in cases where the employee's termination was due to redundancy. In such a case, the employee is entitled to 15 days' pay for every year of employment.
Please note that the employer is obliged to pay the final wages on the last day of the contract termination. Additionally, if the employee has pending day-offs, the employer must pay the corresponding amount in full.