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Hiring a local workforce from Kenya can be beneficial for your organisation, considering the diverse pool of talent in a variety of fields. However, prior to initiating the hiring procedure, it’s recommended that employers gain a thorough understanding of Kenyan labour laws and regulations.
Kenya has a specific set of labour laws that govern various aspects of employment, including contracts, minimum wages, working hours, leave entitlements, and employment termination procedures.
Aside from strict employment laws, Kenya is a culturally diverse country with over 40 ethnic groups. Therefore, employers must acknowledge and respect cultural differences to promote inclusivity in the workplace and gain success in the country’s business landscape.
As a country, Kenya offers several compelling reasons for considering it as a viable option for hiring remote workers.
In the first place, Kenya has a growing pool of talented and skilled individuals in fields such as technology, digital marketing, content writing, and more. This makes it easier to find remote employees with the right set of skills needed for your business operations.
Besides being the home of a lot of skilled professionals, Kenya recognises two official languages, one of which is English. The language proficiency of Kenyan employees will facilitate smooth communication among team members and with clients, especially in roles that require strong language skills.
Finally, the cost of living and operating in Kenya is generally lower than in many Western countries. This financial advantage allows employers to achieve cost-effective hiring without compromising quality.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Kenya. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
Hire your first Kenyan employee with Native Teams.
Before deciding to hire individuals from Kenya, it’s important to understand the following legal regulations:
The Constitution of Kenya, 2010, is the supreme law and provides fundamental rights and freedoms that affect employment relationships, including the right to fair labour practices, equality, freedom from discrimination, and fair remuneration.
The Labour Relations Act, 2007 regulates the formation and functioning of trade unions, employers’ organisations and federations. It provides for the recognition of trade unions, collective bargaining and dispute resolution mechanisms, including strikes and lockouts.
The Work Injury Benefits Act, 2007 (WIBA) provides compensation for employees who suffer work-related injuries or occupational diseases during their employment. It also establishes procedures for reporting workplace accidents and claiming compensation.
The Occupational Safety and Health Act, 2007 (OSHA) establishes requirements for the safety, health and welfare of workers in the workplace. Employers must provide a safe working environment, conduct risk assessments and comply with applicable safety standards.
Kenya recognises several types of employment contracts, depending on the duration and nature of the work. These include:
An employment contract must include essential information about both the employee and the employment relationship. It should include the employee’s name, age, permanent address, salary, annual leave and termination arrangements, as well as the name of the employer.
The contract should also provide a clear job description setting out the employee’s responsibilities and duties. It must specify the date employment began, the type and duration of the contract, and the designated place of work.
The document should further set out the employee’s working hours and remuneration arrangements, including the applicable scale or rate of pay, the method used to calculate remuneration, and any additional benefits provided.
Download a free employment contract for Kenya through Native Teams.
The Labour Act recognises that an employment contract may take different forms, including oral or written agreements, as well as express or implied contracts.
Where an employment contract has not been formalised in writing, the employer must provide the employee with written confirmation of the concluded employment contract within two months from the start of the employment relationship.
Although witnesses are not required to sign an employment contract, it is strongly recommended that the employee’s signature be witnessed.
The witness does not need to be a legal professional. The employee may choose a person they trust to act as a witness.
A probationary period may not exceed six months. However, it may be extended by up to a further six months if both parties to the employment contract agree to the extension. Any such extension must be documented and agreed in writing to ensure clarity and compliance with the applicable requirements.
Although the probationary period may therefore be extended by up to an additional six months through mutual agreement, the law does not expressly set out the procedures or requirements for entering into a new employment contract that includes a probationary period.
The standard working hours generally amount to 45 hours per week, consisting of 8 hours per day from Monday to Friday and 5 hours on Saturday.
The standard weekly limit is 52 hours, as provided under the Regulations of Wages and Conditions of Employment Act. However, working hours may be adjusted through collective agreements, which often provide for working weeks ranging from 40 to 52 hours.
Night work in Kenya is governed by regulations intended to protect the safety and well-being of employees working during night shifts. Work performed between 10 p.m. and 6 a.m. is classified as night work. This classification has implications for both employers and employees.
Every employee is entitled to at least one rest day in every seven-day period. Any time worked beyond the regular daily working hours specified above is considered overtime. Where an employee works more than 52 hours, overtime is paid at the following rates:
Employees who have worked continuously for 12 months are entitled to a minimum of 21 days of paid annual leave.
If employment ends after the employee has completed two or more consecutive months of service within a 12-month leave-earning period, they are entitled to 1.75 days of paid leave for each completed month of service during that period. The leave must be taken consecutively.
Salaries in Kenya vary widely by role and are varied across different sectors. The legally mandated minimum remuneration is intended to ensure that employees receive fair compensation for their work. It cannot be reduced or altered through individual agreements between an employer and an employee, or through collective bargaining processes.
To calculate the salary and taxes in Kenya, click here.
Employees who are absent from work due to illness or a medical condition must promptly notify their employer and provide a valid medical certificate signed by a licensed medical practitioner. The certificate should be submitted as soon as reasonably possible so that the employer is aware of the absence and its expected duration.
Employees become eligible for sick leave after completing two consecutive months of service. Sick leave is divided into two phases:
Female employees are entitled to three months of fully paid maternity leave with seven days' notice, can extend this leave with accrued annual leave, must provide 14 days' notice for one month's paid pre-adoptive leave, and have the right to resume their previous position or an equivalent role with equitable terms. Male employees are entitled to two weeks' paid paternity leave.
An employment contract may be terminated in the following ways:
An employer may terminate an employee’s employment, but must comply with the applicable legal and contractual provisions governing termination.
For an ordinary dismissal to be considered fair under the law, the employer must have a valid reason for terminating the employment. In addition to establishing a valid reason, the employer must follow the fair termination procedures.
For any form of termination, the employer is required to prove the reason for the termination. If the employer cannot establish the reason, the termination may be considered unfair.
The specific termination procedure depends on the reason for dismissal. However, all procedures share a fundamental requirement: the employee has the right to be heard before a decision to terminate their employment is made.
An employer may summarily dismiss an employee for gross misconduct, poor performance, the employer’s operational requirements, or a breach of fundamental terms of the employment contract.
The reason for termination must be fair and must not be based on a female employee’s pregnancy, the employee taking contractually agreed leave, or their membership of, participation in, or refusal to withdraw from a trade union.
It must also not be based on the employee’s race, colour, tribe, sex, religion, political opinion or affiliation, national extraction, nationality, social origin, marital status, HIV status or disability, or on the employee initiating legal proceedings against the employer.
For employees on daily wage contracts, notice may be given at the close of any working day, with no prior notice required.
Employees paid weekly or every two weeks are entitled to a notice period of one or two weeks, respectively. The notice must be given in writing or may be replaced by payment equivalent to one or two weeks’ wages in lieu of notice.
Employees paid monthly are entitled to 28 days’ notice. The notice must be given in writing or may be replaced by payment of one month’s salary in lieu of notice.
Where an employment contract provides for a notice period of more than one month, the employer and employee must agree to this period in writing. The agreed notice period must be the same for both parties, ensuring reciprocity.
There is currently no legal provision for unemployment insurance or unemployment benefits. However, a National Employment Authority was established under an Act of 2016 to address employment-related matters.
The Authority advises on the formulation of employment policies and strategies for both national and county governments and facilitates their implementation. It also develops methodologies for measuring, managing and promoting employment and conducts periodic surveys on labour market skills requirements to help align job seekers’ training with market demands.
There is no provision for severance pay under legislation for reasons other than redundancy.
Redundancy refers to the involuntary loss of employment through no fault of the employee, where the employer initiates the termination because the employee’s services have become superfluous. This includes circumstances commonly described as the abolition of an office, job or occupation, resulting in the loss of employment.
An agreement or contract containing a provision that restricts a person from engaging in a lawful profession, trade, business or occupation is not automatically void.
However, the High Court may declare such a restriction void if it considers the clause unreasonable in light of the nature of the profession, trade, business or occupation, as well as the specified duration and geographical scope of the restriction. The assessment also considers whether the clause provides excessive protection to the party imposing the restriction or is detrimental to the public interest.
Generally, IP created by an employee during their employment belongs to the employer, particularly where the employee was hired specifically to create that intellectual property. Employment contracts often include IP assignment clauses to formalise this arrangement.
However, where the creation falls outside the scope of the employee’s employment or is made using the employee’s personal resources, the employee may retain ownership unless the employment contract provides otherwise.
Employers must obtain employees’ informed consent before collecting personal data such as ID numbers, health records and financial details. Such data should be collected only for legitimate purposes, including payroll administration or compliance with labour laws.
Employers are also required to implement security measures to protect employee data from unauthorised access or disclosure.
Hiring remote employees from Kenya offers many advantages compared to hiring from other countries.
First, Kenya offers more cost-effective labour than many other developed countries. Salaries and operational costs in Kenya are generally lower than in places like the US and Europe, which can significantly reduce your overall business expenses.
However, cost-effectiveness doesn’t mean less skilled employees. In fact, Kenya has a growing number of universities and technical institutions that produce a highly educated workforce. This results in skilled professionals in fields like technology, finance, and customer service, which makes Kenya a good choice for hiring remote employees.
Kenya’s workforce is also proficient in English, which contributes to smoother communication with global teams and foreign clients. In addition, the country promotes a strong work ethic, with employees often being praised and rewarded for their adaptability and hard work.
Finally, Kenya is becoming a tech and innovation hub in Africa. With a growing number of startups and venture capital firms, Kenya is promising a perfect environment for expanding business operations, especially in the tech sector.
Native Teams helps you employ and pay your team in Kenya directly through owned entities and infrastructure.
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