Hiring guide in Kenya

What should I know about hiring in Kenya?

Legal framework

Types of employment contracts

Kenyan labour law recognises a couple of different types of employment contracts.

Starting from indefinite employment contracts, they’re the most commonly used type, as they’re permanent and have no set end date. As such, these contracts provide long-term employment, job stability, and financial security for employees in Kenya.

Fixed-term employment contracts are also commonly used for temporary and project-specific employment. These contracts have defined start and end dates. 

Kenya also recognises contracts for a specific task (piecework employment) which are tied to the completion of a specific task or project. Once the task is completed, the contract automatically ends. Finally, contracts for casual employment are recognised and used under Kenyan labour law, typically for short-term work. The employee under this contract is paid at the end of each day and cannot be engaged for a period exceeding 24 hours at a time.

Content of an employment contract

When an employer hires an individual to work for them, they must provide a written statement within two months of the employment. The contract must detail personal information about the employee, job description, contract terms, remuneration, and any other important information regarding the employment.

Additionally, the contract should clearly state the name of the employer, outline both parties’ responsibilities and rights, and specify the start date, duration, and designated place of work.

Finally, employment contracts in Kenya must also define details regarding the hours of work, remuneration structure, methods for calculating remuneration, and any additional benefits that are provided to the employee.

Download a free employment contract for Kenya through Native Teams.

Oral, written or electronic employment contracts

The labour law of Kenya acknowledges that employment contracts can be in different forms, including oral or written. 

If the contract is not formalised in writing, the employer is legally required to provide the employee with a written contract within two months of the employment. The written contract serves as an important record and helps clarify the terms and conditions of the employment while also helping to reduce potential disputes in the future. 

When concluding an employment contract, it’s also strongly recommended that the employee’s signature be witnessed. This practice will help provide an additional layer of protection for the company and ensure that there’s a credible third party that confirms the authenticity of the contract if any issues arise later on.

Probationary period

The probationary period for employment in Kenya can not exceed six months. However, it can be extended for an additional six months if there is a mutual agreement between both parties. The extension must be documented and agreed upon in writing so it can ensure adherence to Kenya’s labour laws.

Working hours

The standard working week in Kenya is limited to 45 hours per week, which translates to eight hours each day from Monday to Friday and five hours on Saturday. 

These hours can be adjusted under collective agreements, which often allow a range between 40 and 52 hours per week.

Night work

Night work in Kenya is regulated by the Employment Act of 2007 and is considered to be any work from 10 pm to 6 am. 

Employers are required to ensure the safety and well-being of employees engaged in night shifts, including ensuring safe conditions, adequate lighting, safety equipment, and reliable transportation.

Breaks and types of leaves

Every employee in Kenya is entitled to at least one rest day within every seven-day period. 

Any time that an employee works beyond the regular daily working hours is deemed overtime and requires providing higher pay rates. Therefore, the time worked in excess of the limit of 52 hours is paid at once and a half times the normal hourly rate on a normal working day and twice the normal hourly rate on a rest day or a public holiday.

Annual leave

Employees in Kenya are entitled to 21 days of paid annual leave per year. However, to qualify for 21 days of paid annual leave, an employee must have worked continuously for twelve months. 

If the employment relationship ends after two or more consecutive months of service within a twelve-month leave-earning period, the employee is entitled to one and three-quarters days of paid leave for each completed month of service during that period.

Public holidays

As stipulated by national labour regulations, Kenya observes 11 public holidays per year. Some of them include New Year’s Day, Good Friday, Easter Monday, Labour Day, Madaraka Day, Mashujaa Day, Christmas Day, and others.

Salary

Currently, the minimum hourly wage in Kenya’s capital is KES 63.33, assuming an eight-hour workday. 

The minimum wage is the lowest amount of compensation that an employer is legally obligated to pay an employee for their labour. The legally mandated minimum remuneration must ensure that workers receive fair compensation for their efforts and cannot be altered through personal agreements or collective bargaining processes.

To calculate the salary and taxes in Kenya, click here.

Sick leave

In case of sick leave, employees must promptly notify their employer of their absence and must provide a valid medical certificate. In order to qualify for sick leave, the employee must have completed two consecutive months of service. 

The sick leave in Kenya is structured in two phases. The first phase allows for seven days of sick leave with full pay, during which the employee must receive their full pay. After the seven-day period, the employee is entitled to an additional seven days of sick leave but at half of their regular pay. This second phase of half-paid sick leave provides the required financial support while the employee continues to recover.

Maternity and paternity leave

Female employees in Kenya are entitled to three months of fully paid maternity leave with seven days’ notice. The maternity leave can be extended with the employee’s accrued annual leave. In case of adoption of a child, mothers must provide 14 days’ notice for one month’s paid pre-adoptive leave. After the leave ends, the mother has the right to resume her previous position or pursue an equivalent role with equitable terms. 

Male employees in Kenya are entitled to a two-week period of fully paid paternity leave. This legal provision ensures that male workers have the right to take time off following the birth or adoption of a child, and they’re entitled to receive their full salary during this period.

When it comes to parental leave, it is not yet regulated under the Kenyan labour law.

Methods of employment termination

There are multiple ways of terminating an employment contract in Kenya, among which are termination with resignation by the employee, dismissal by the employer, or with a mutual termination agreement. 

In order to terminate the employment contract, the employer must have a valid reason for the termination to be considered fair according to the law. Apart from a valid reason, the employer must also follow fair procedures for termination, as regulated by law.

Ordinary dismissal by employer

An employer may terminate the employment contract for just cause, provided that it aligns with the legal grounds outlined in Kenyan labour laws.

Under the Employment Act of 2007, employers may dismiss an employee for reasons like gross misconduct, poor performance, employers’ operational requirements, and breach of fundamental terms of an employment contract. The reasons should be fair and not based on factors like a female employee’s pregnancy, the employee going on contractually agreed leave, the employee’s membership to or participation in trade unions, and similar reasons.

Notice period and challenging the dismissal

The notice period requirements in Kenya depend on the terms and conditions provided in the employee’s employment contract. 

For employees on daily wage contracts, no notice period is required. If the employee is paid weekly or every two weeks, the notice period should be set at one or two weeks respectively. Finally, for employees who are paid on a monthly basis, the notice period is set at 28 days.

If the employment contract specifies a notice period that exceeds one month, the employer and employee must conclude a written agreement. The agreed notice period must be of equal duration for both parties to ensure reciprocity in the employment relationship.

Rights and obligations of unemployed individuals

Currently, in Kenya, there are no provisions for unemployment insurance and benefits. However, to address employment-related issues, the Kenyan authorities have established a National Employment Authority under an Act of 2016.

The Authority’s functions include advising on the formulation of employment policies and strategies for both national and country governments, as well as their implementation. It also develops methodologies for measuring, managing, and promoting employment, as well as alignment between job seekers’ training and market demands.

Severance pay

In Kenya, there are currently no provisions for severance pay. However, severance payments may arise in certain circumstances, such as redundancy. 

Redundancy means the loss of employment by involuntary means through no worker’s fault. This involves termination of employment by the employer, where the worker’s services are no longer needed, often due to company restructuring or changes in business operations.

Intellectual property rights

Intellectual property created by an employee during employment typically belongs to the employer, with ownership and confidentiality clauses outlined in the contract. However, employees may retain moral rights, and certain exceptions may apply to work created outside their duties.

Employee data privacy

The Data Protection Act of 2019 and the Employment Act of 2007 of Kenya regulate how private and public organisations collect, store and process personal data and the privacy rights in employment contracts. 

Before collecting personal data like ID numbers, health records, and financial details, employers must obtain employees’ informed consent. Employers must also ensure that the data is gathered only for legitimate purposes such as payroll and labour law compliance and implement security measures to protect the data from unauthorised access or disclosure.

Prohibition of competition

Non-compete clauses in Kenya are governed by the Contracts in Restraint of Trade Act, which contains provisions that restrain parties from engaging in lawful professions, trade, businesses or occupations that are not automatically void.

The High Court of Kenya has the authority to declare such provisions void if it finds that the restrictions, based on the nature of the profession, trade, business, or occupation, as well as the specified time period and geographical scope, are unreasonable. This involves determining whether the clause provides excessive protection to the imposing party or harms the public interest.

Remote working policy

The Employment Act and the labour law of Kenya currently do not have any specific provisions for remote work. Therefore, any terms and conditions related to remote working must be included in the employment contract. This also includes the responsibilities, obligations, and rights of both parties.

What are the advantages of hiring employees from Kenya vs other countries?

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.

Why use Native Teams for hiring in Kenya?

Native Teams lets you employ team members “like a local”, meaning you get all the benefits of a global team wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximising your profits.
• Compliance expertise: We can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.

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