Kenya Labour Laws: An Employer's Guide

Kenya's core employment law is the Employment Act 2007. It sets minimum terms every employer must meet - a written contract, limits on probation, rest days, annual, sick, maternity and paternity leave, housing or a rent allowance, and fair termination. Contracts can give employees more, never less.

This guide summarises the rules employers most often need, with the section of the Act where each comes from.

The main employment laws

• Employment Act 2007 - contracts, leave, wages, termination and employee rights.
• Labour Relations Act 2007 - trade unions, collective bargaining agreements and disputes.
• Labour Institutions Act 2007 - labour officers and the wages councils that recommend minimum wages.
• Occupational Safety and Health Act 2007 - workplace safety.
• Work Injury Benefits Act 2007 - compensation for injuries at work.
• Data Protection Act 2019 - how you handle employees' and candidates' personal data.

Disputes go to labour officers and to the Employment and Labour Relations Court.

Contracts

• Written contract (section 9): required for employment of three months or more, or for work that cannot reasonably be completed within three months. The employer must draw it up, and the employee must consent to it.
• Casual workers (section 37): a casual employee who works continuously for the equivalent of one month or more is treated as employed on monthly terms, with the notice and other rights that brings.
• Probation (section 42): up to six months, extendable by up to six more months with the employee's agreement. Courts have held that probationers are still entitled to be told why they are being let go, so follow a fair process even during probation.

Working time and rest

• Rest days (section 27): every employee is entitled to at least one rest day in every seven days.
• Working hours are regulated by the Act together with the wages orders that apply to each sector and any contract or collective agreement. Set the normal hours, shift patterns and overtime rate in the contract.

Leave

Public holidays are set by law, and employees who work on them are usually paid at a higher rate under the applicable wages order or contract.

Pay, housing and wages

• Minimum wages: set by occupation and location through regulation of wages orders, recommended by the wages councils. The latest general increase of 6% took effect on 1 November 2024.
• Housing (section 31): an employer must provide reasonable housing or pay a sufficient rent allowance on top of wages - unless the contract consolidates a housing element into the basic salary. State clearly in the contract which applies.
• Payslips and deductions: give employees a written statement of pay, and deduct only what the law or the employee's written consent allows - such as PAYE, NSSF, SHIF and the Housing Levy. See Kenya payroll for foreign employers.

Equality and fair treatment

The Employment Act prohibits discrimination in employment, including in recruitment, pay and promotion, and requires equal pay for work of equal value. Sexual harassment is prohibited, and employers with twenty or more employees must have a written sexual harassment policy. The Constitution also protects every worker's right to fair labour practices.

Records

Employers must keep written records for every employee, including their contract, pay and leave. Good records are also your best defence if a dispute reaches a labour officer or the court.

Ending employment

Termination in Kenya must have a valid, fair reason and follow a fair procedure - and redundancy has its own steps and severance pay. See termination and redundancy in Kenya.

How Cazini helps

Cazini keeps every employee's contract, documents, leave and attendance on one record, applies your company's leave rules, and runs Kenyan payroll with statutory deductions - so the records the law expects are there when you need them. See employee management and payroll.

Sources

• Employment Act, 2007 (Ministry of Labour copy, PDF)
• Nation: court bars employers from sacking staff on probation without explanation

Frequently asked questions

What is the main labour law in Kenya?+

The Employment Act 2007 sets the basic rights of employees and duties of employers, alongside the Labour Relations Act 2007 (unions and collective agreements), the Labour Institutions Act 2007 (including wages councils), the Occupational Safety and Health Act 2007 and the Work Injury Benefits Act 2007.

How many leave days does an employee get in Kenya?+

At least 21 working days of annual leave with full pay after every twelve consecutive months of service, plus sick leave, maternity leave of three months and paternity leave of two weeks, all with full pay.

How long can probation be in Kenya?+

A probationary period can be up to six months, and can be extended by up to a further six months with the employee's agreement - twelve months at most.

How many rest days must an employee have?+

At least one rest day in every period of seven days. Working hours themselves are regulated by the Employment Act together with the wages orders and any contract or collective agreement.

Must an employment contract in Kenya be in writing?+

Yes, for employment of three months or more, or for work that cannot reasonably be completed within three months. The employer is responsible for drawing up the written contract.