Employment Contract Template Kenya: Free Sample

Use the employment contract template below to record a Kenyan employee’s role, pay, housing, hours, leave, probation and notice terms. A written contract is required where employment is for a period, or aggregate period, of three months or more, and the required written particulars must be supplied no later than two months after employment begins. Complete the placeholders, delete unused options and have both parties sign before work starts as your standard hiring practice.

Before you use the template

This sample is a drafting starting point, not a substitute for reviewing the actual role and employment arrangement. Seek Kenyan employment-law advice for unusual working arrangements, disputed terms or a planned termination.

Under Employment Act sections 9 and 10, distinguish the written-contract requirement from the deadline for supplying written particulars. Neither is a good reason to leave a new starter unclear about salary, workplace or duration.

Select the arrangement before editing:

• Permanent: use an indefinite-duration clause without an expiry date.
• Fixed-term: enter a clear end date and record any proposed renewal in a separate written agreement.
• Part-time: specify working days, hours and remuneration rather than simply labelling the employee part-time.
• Probation: retain the express written probation clause only where intended.
• Casual or contractor engagement: get the working arrangement reviewed before adapting this employee template. Do not choose a label merely to avoid documenting ongoing work.

Use your hiring workflow to keep the approved offer, job description and final contract consistent.

Copy-and-edit employment contract

Replace every bracketed instruction. The headings below can become the headings in your signed document.

Parties, appointment and duration

Employer: [legal name and address].

Employee: [full name, identification details and address].

The employer appoints the employee as [job title], reporting to [position]. Employment begins on [date]. The duties are set out in the attached job description, version dated [date].

Choose and retain the applicable wording:

• Indefinite employment: Employment continues for an indefinite duration, subject to the termination provisions below.
• Fixed-term employment: Employment runs from [start date] to [end date]. Any proposed renewal will be documented separately in writing.

Workplace and hours

The normal place of work is [location]. Agreed remote work, travel or work at other locations is [describe or state not applicable].

Normal working days are [days], and normal working hours are [hours], with breaks of [details]. Any agreed arrangements for shifts, overtime or additional hours are [details].

Remuneration, housing and benefits

The employee’s gross remuneration is KES [amount] per [payment interval], payable on [payment date] through [payment method]. Its components are [basic salary, allowances and other agreed remuneration].

Retain the housing option that applies and reconcile it with the gross-pay breakdown:

• Employer accommodation: The employer will provide reasonable housing at [location and details].
• Separate allowance: In addition to basic salary of KES [amount], the employer will pay a housing allowance of KES [amount], sufficient for rent as required by section 31.
• Consolidated pay: The agreed salary of KES [amount] expressly consolidates the housing element into the employee’s remuneration. The agreed breakdown is [details].

Other benefits and eligibility conditions are [details or none]. Pension arrangements are [NSSF and details of any additional pension scheme].

The employer will make applicable statutory deductions, including PAYE, employee NSSF contributions and SHIF, and remit them as required. Applicable rates and limits will follow the law in force. Employer contributions will be accounted for separately from employee deductions.

Probation, if applicable

The employee will serve an expressly agreed probationary period of [duration, not exceeding six months] from [date]. Probation may be extended once for up to a further six months with the employee’s agreement, recorded in writing.

During probation, either party may terminate employment by giving at least seven days’ notice, or the employer may pay seven days’ wages in lieu of notice.

The probation review will assess [role-specific expectations] and take place on [date].

Leave and incapacity

The employee is entitled to at least 21 working days of paid annual leave after every 12 consecutive months of service. The agreed annual leave entitlement is [insert entitlement meeting or exceeding that minimum].

Maternity leave is three months with full pay; paternity leave is two weeks with full pay; and pre-adoptive leave is one month with full pay, under the applicable Employment Act provisions.

After two consecutive months of service, sick leave entitlement in each 12-month period is at least seven days with full pay and a further seven days with half pay, subject to statutory conditions. The sickness-reporting and supporting-document procedure is [details]. Any enhanced sick-pay arrangement is [details or none].

Notice, policies and signatures

For this monthly-paid contract, after probation the notice period is [at least 28 days] in writing. Payment in lieu of notice is permitted under the Employment Act. Refer any proposed termination for review of the applicable reason and procedure before issuing notice.

The employee has been supplied with [list policies and document versions]. Role-specific confidentiality and information-handling expectations are [details or attached acknowledgement].

Employer representative: [name, position, signature and date].

Employee: [name, signature and date].

Where needed, this contract was explained in [language] by [name] on [date]. Both parties receive a signed copy.

Check these clauses before signing

Housing must be explicit

Section 31 requires reasonable housing or a sufficient rent payment in addition to remuneration, unless the contract expressly consolidates the housing element into pay. Do not leave several housing options in the signed document or use a salary figure that conflicts with the offer letter.

Keep changing payroll figures out of the contract

Use a statutory-deductions clause rather than promising a fixed take-home amount without payroll modelling. KRA requires employers to register for PAYE, deduct income tax and remit it. NSSF requires contributing-employer registration, employee registration, returns and remittances.

NSSF’s contribution framework is 12% of pensionable wages, split equally between employee and employer, subject to applicable earnings limits. SHIF for salaried households is 2.75% of gross salary or wage. Keep current calculations in payroll, not as permanent amounts embedded in the contract.

Kenya PAYE calculatorWork out net pay and every deduction for any salary.

Separate the contract from the policy pack

Attach the job description and identify the policies actually supplied. Keep detailed disciplinary rules, reporting procedures, confidentiality acknowledgements and performance-review documents in a clearly versioned pack rather than copying an entire handbook into the contract.

Employers with 20 or more employees must, after consulting employees or their representatives, issue and implement a sexual-harassment policy statement covering the Employment Act’s required matters. A short contract reference is not a replacement for that policy.

Signing, changes and follow-up

Before signing, check that duration, workplace, hours, payment date, housing, benefits, deductions, pension, leave and notice are complete. If the employee is illiterate or does not understand the contract’s language, the employer must have it explained in a language the employee understands.

Diarise probation reviews, fixed-term expiry discussions and payroll setup. Generally, changes to required written particulars must be notified in writing within one month after taking effect under section 13. As a practical safeguard, discuss proposed changes and document agreement before implementation rather than treating that notification deadline as permission to impose them.

Short contract-variation template

Employee: [name]. Original contract date: [date].

Following discussion, the parties agree that [existing term] will change to [new term] with effect from [date]. The effect on remuneration, hours, workplace, duties or benefits is [details]. All other agreed terms remain unchanged.

Employer signature and date: [details]. Employee signature and date: [details].

At exit, remember the certificate of service: an employee employed continuously for at least four weeks is generally entitled to one, unless an express statutory exception applies.

Sources

Kenya Law - Employment Act, Cap. 226 - Written particulars, probation, housing, leave, notice, changes, policies and certificates of service. State Department for Labour and Skills Development - Employment Act, 2007 - Explaining the contract in a language the employee understands. Kenya Revenue Authority - PAYE - Employer PAYE registration, deduction and remittance obligations. National Social Security Fund - Employer Obligations - Employer and employee registration, returns and remittances. National Social Security Fund - New Member Contributions - Contribution split and applicable earnings limits. Kenya Law - Social Health Insurance Regulations - Salaried-household SHIF rate and employer deduction and remittance obligations.

Frequently asked questions

Is a written employment contract mandatory in Kenya?+

A written contract is required where employment is for a period, or aggregate period, of three months or more. It must be drawn up, consented to by the employee and signed by both parties. For shorter engagements, documenting the terms remains the better employer practice rather than relying on an oral arrangement.

When must an employer provide written employment particulars?+

The required written statement must be given no later than two months after employment begins, although particulars may be provided in instalments. As an employer workflow, complete and sign the contract before the employee starts rather than using that deadline as a drafting target.

What is the maximum probation period in Kenya?+

Probation must be in writing and expressly identified as probation. The initial period cannot exceed six months, but it may be extended once for up to a further six months with the employee’s agreement.

Can salary include house allowance in Kenya?+

Yes, the contract can expressly consolidate the housing element into the employee’s wage or salary. Otherwise, the employer must provide reasonable housing or pay a sufficient rent allowance in addition to remuneration. Do not assume that describing pay as basic salary settles the housing requirement.

How much termination notice should a monthly-paid contract specify?+

The statutory minimum is 28 days’ written notice unless the contract provides a longer period, and payment in lieu is permitted. During probation, either party may give at least seven days’ notice, or the employer may pay seven days’ wages in lieu. Treat the notice clause separately from reviewing the reason and procedure for a proposed termination.