As of March 2024, the estimated population of Kenya is 55 million.
The currency in Kenya is the Kenyan Shilling (KES). The currency symbol is KSh.
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.
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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.
The National Social Security Fund (NSSF) of Kenya provides 2 types of old-age benefits: mandatory Pension Fund (for all employees) and Provident Fund (for self-employed and retired persons, voluntary coverage for employees). Contributions are made by both employees and employers to the Pension Fund in 2 tiers, depending on the level of earnings. To be eligible for old-age benefits, an employee must be 60 years of age, and the employment must cease properly and fairly. Early retirement is possible at the age of 50 years. The pension amount depends on the total contributions paid to the Pension Fund and Provident Fund. The amount in the Pension Fund may be taken out as a lump sum or an annuity. A social assistance old-age benefit of KES 2,000 per month is paid to citizens above 70 years of age living in poverty.
In Kenya, the survivors' benefit is paid to dependents, including spouses, children under 25 years of age, or parents, grandparents, and grandchildren of the deceased if the person dies before retirement age and has made at least 36 contributions to the National Social Security Fund. The pension amount depends on the contributions made to the Pension Fund. The amount in the Provident Fund is paid as a lump sum to the survivors. A standard funeral grant is KES 10,000 (Kenyan shillings). If an employee dies due to an injury caused by a work-related accident, compensation is paid to the dependents, and the employer shall be responsible for the funeral expenses.
To qualify for an invalidity pension, an individual must be assessed with a total and permanent physical or mental disability and have paid at least 36 contributions immediately preceding the date of the invalidity to the National Social Security Fund (NSSF). The pension amount depends on the contributions made to the Pension Fund. The amount in the Provident Fund is paid as a lump sum. If an individual becomes disabled due to a work-related injury or experience, they are entitled to benefits covered by the employer. In case of temporary disability, benefits are 50% of his/her monthly earnings (maximum KES 540) paid 3 days after the individual’s date of the disability, up to 12 months. The maximum total temporary disability benefit is KES 240,000 (Kenyan shillings). Individuals with a permanent disability are paid a lump sum of 96 months' worth of their earnings or the maximum benefit amount of KES 240,000, whichever amount is lower. Individuals with a partial permanent disability are entitled to a lump sum worth 60 months of their earnings or the maximum benefit of KES 240,000, whichever amount is lower.
In Kenya, the assessment year runs from January 1 through December 31. Income tax is charged on all income accrued in or derived from Kenya, for both residents and non-residents. In addition, residents are taxed on employment income earned outside Kenya. Individuals are taxed based on graduated tax rates ranging from 10% to 35%. Residents are entitled to a personal relief of KES 28,800 per annum and an insurance relief of 15% of the premiums paid for self, spouse, or child (not exceeding KES 60,000 per annum). Non-residents are not eligible for personal tax relief.
Traditional visas are no longer required to enter Kenya. Effective January 1, 2024, the Government of Kenya abolished all visa requirements and replaced them with the Electronic Travel Authorization (eTA) system. The new digital portal etakenya.go.ke was launched to facilitate the seamless identification of travelers to Kenya in advance, replacing the previously operational evisa.go.ke platform. All visitors, including infants and children who intend to travel to Kenya, must have an approved eTA before the start of their journey.
The Directorate of Immigration Services continues to issue the following specialized travel documents and passes that serve functions previously covered by visa categories:
All foreign citizens must be in possession of a work/resident permit or an exemption before accepting employment in Kenya. Categories of permits include: Class A - Miners or those prospecting for minerals Class B - Agriculture and animal breeding industry prospects Class C - Prescribed profession Class D - Employee offered employment Class F - Specific manufacturing (proof of investment is necessary) Class G - Investors in a specific trade, business, or consultancy (proof of investment is necessary) Class I - Work/residence permit for a missionary pre-approved by the Government of Kenya Class K - Residence permit for individuals at least 35 years old with foreign income who will not undertake paid employment in Kenya (proof of foreign income is necessary). Class M - Conventional refugees Class N - Digital nomads who work under an employment contract for a company registered outside Kenya, or offer services as a self-employed to clients who are located outside Kenya
