Kenya is an East African nation positioned along the Indian Ocean and surrounded by Somalia, Uganda, South Sudan, Tanzania, and Ethiopia. Kenya shares part of Lake Victoria with Uganda and Tanzania, making that area a great port of East African trade and a thriving fishing harbor. The population density in Kenya is sparse in the eastern region and dense around the central region, urban centers, coastal areas as well as the western region around Lake Victoria. The county has 42 tribes, with the largest of them being Kikuyu, Luhya, Luo, and Kalenjin. English and Kiswahili are the official languages and Christianity accounts for 83 percent of people’s practiced religion and Islam 11 percent. GDP growth in 2016 was 5.8% and was largely driven by services and industry, rather than by agriculture. Major economic sectors are real estate, transport, storage, construction, and manufacturing. Political uncertainties from the 2017 general elections, among other issues, may have caused a decline in the most recent growth rate to 5 percent.
Kenya's Employment Act requires employers to specify the nature of employment (permanent, temporary, or casual) in the notification of vacancy and labor agreements. Employment contracts that are concluded for indefinite duration are considered permanent. Such contracts are terminated by giving an advance notice.
Permanent employment contracts must be concluded in writing. Permanent employees are paid monthly.
In Kenya, employment contracts can be oral or written. Written contracts are only required if the employment relationship is 3 months or longer.
The following information must be outlined in a written labor agreement supplied to an employee within 2 months of the employment start date:
Name, age, permanent address, and sex of the employee
Name of employer
Employment start date
Job description
Form and duration of the contract
Place and hours of work
Salary, wage rate, and details of any benefits
Pay frequency
Employers can include non-compete or non-solicitation clauses in employment contracts. As per the Contracts in Restraint of Trade Act, the High Court is empowered to declare a provision or covenant void if it determines, considering the nature of the profession, trade, business, or occupation involved, as well as the specified duration, geographical scope, and all relevant circumstances, that the provision or covenant is unreasonable. This unreasonableness may stem from it providing excessive protection to the party it favors beyond what is necessary or if it is detrimental to the public interest.
According to the Employment Act of Kenya, the type of employment must be clearly defined in the labor contract.
Employees are considered casual if they are engaged to work for no longer than 24 hours at a time and are paid at the end of each day. However, if a casual employee works for more than a month continuously or performs work that cannot be expected to be completed within 3 months, their contract is considered a fixed-term contract, and wages are paid monthly. Their employment contract can be terminated without notice, if it is concluded for less than 1 month.
Probationary periods may not exceed 6 months unless the employer and the employee mutually agree to an extension (up to 6 months).
A notice period of 7 days (or payment in lieu of notice for employers) is required to terminate an employee's contract by either party during the probation. All employees, including those on probation, have the right to a fair hearing before termination.
In Kenya, the standard workweek cannot exceed 52 hours over 6 working days. For persons employed in night work, weekly working hours cannot exceed 60. All employees are entitled to at least 1 day of rest every 7 workdays.
Under Kenya’s Employment Act of 2007, all employees are entitled to at least 21 days of annual leave for every 12 months of continuous service remunerated at the employee’s full, regular pay rate. Employees whose contracts of employment are terminated before they reach a period of 12 months of consecutive service accumulate annual leave based on the rate of 1.75 days of leave per month of continuous employment. Taking full maternity leave in a year does not forfeit an employee’s annual leave.
Employees who have worked for the same employer for 2 continuous months are entitled to up to 14 days' sick leave in a period of 12 months of service. The first 7 days will be remunerated at a full pay rate and the remaining days at a half pay rate. For employees to properly claim the sick leave to which they are entitled, they must provide a certificate from a medical professional demonstrating the inability to work due to illness, and notify their employer as soon as reasonably practical.
Female employees are entitled to 3 months of maternity leave with full pay. Upon agreement with their employer, they may extend their maternity leave beyond the allocated 3 months should complications arise during or after childbirth. The employee must provide the employer with at least 7 days written notice stating the start date of their maternity leave and the date of return to work.
Employers are prohibited from dismissing employees on the grounds of pregnancy.
In Kenya, male employees are entitled to 2 weeks’ paternity leave with full pay in a period of 12 months. Paternity leave may be taken all at once or in a way and on dates convenient to the employee and employer. Employees applying for paternity leave must submit sufficient evidence of the birth of the child.
The labor law delineates the types of notices required for different employment contracts. The notice must be given in writing in all cases, but an agreement between employees and employers can increase its duration.
There is also a provision for payment in lieu of notice, which is permitted for terminated contracts with wages paid in intervals over 1 month. In this case, the employer must pay the terminated employee the amount they would have earned during the notice period before termination.
Employers are not required to give employees a notice period if the employee is dismissed for gross misconduct.
Under Kenyan law, severance pay is only mandatory where an employee’s employment is terminated due to redundancy. In such cases, the employer must pay at least 15 days’ salary for every completed year of service. There is no minimum period of service required for an employee to qualify for severance pay. However, the calculation is based only on completed years worked, meaning partial years are not counted on a pro-rated basis.
