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Your guide to the employment landscape, working customs and local labor laws in Kenya.
Capital
Nairobi
Currency
Kenyan Shilling (Ksh)
Languages
Swahili (Kiswahili), English
GDP per Capita
$2,282.76
Employer Tax
250 KES
Payroll Frequency
Monthly
Kenya has a market-based economy. Located on the Indian Ocean coastline, Kenya opens the door to the eastern Africa Market for businesses, making it a hub of economic, commercial, financial, and logistics activities in East Africa. The country has a development programme named “Vision 2030” from 2008 to 2030. Under this, the Kenyan government has been making continuous efforts to improve the country’s economic status. Major Industries in Kenya include agriculture, manufacturing, tourism, financial services, mining, etc.
Major economic hubs:
Nairobi, Mombasa
Skills in demand:
Local: 1
World: 953
Local: 2
World: 2,277
Local: 3
World: 3,213
Local: 4
World: 3,980
Local: 5
World: 4,143
Advance-Africa, bestjobs, Kenyancareer, Fuzu, and brightermonday
3,960,000
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Average Salary of some common jobs in Kenya:
Job Title | Average Monthly Salary (in KES) | Average Monthly Salary (in USD) |
Financial Manager | 308,000 | 2,177 |
General Manager | 260,000 | 1,838 |
Business Development Manager | 236,000 | 1,668 |
Financial Analyst | 192,000 | 1,357 |
Business Analyst | 187,000 | 1,322 |
Project Manager | 177,000 | 1,251 |
Employers hiring talents in Kenya should follow all the labor laws, payroll, benefits, and compliances of the country. Having good knowledge of employment laws along with benefits and compensations helps employers to attract the right candidate for the company and reduce employee turnover while managing all the compliances.
This section gives employers brief information about the same.
In Kenya, employment contracts are governed by the Law of Contract Act, 2002 (revised 2012). The contract should be presented in a language that the employee understands. It can be of fixed or unlimited period of time. In the case of a fixed employment contract, the contract ends itself with the end of the period irrespective of dismissal or resignation.
The standard probationary period in Kenya is a maximum of 6 months. However, the period can be extended to a further 6 months, after discussion with the employee.
Date | Name | Type |
1 Jan | New Year’s Day | Public holiday |
29 Mar | Good Friday | Public holiday |
1 Apr | Easter Monday | Public holiday |
11 Apr | Idd ul-Fitr (Tentative Date) | Public holiday |
1 May | Labour Day/May Day | Public holiday |
1 Jun | Madaraka Day | Public holiday |
10 Oct | Huduma Day | Public holiday |
20 Oct | Mashujaa Day | Public holiday |
21 Oct | Mashujaa Day observed | Public holiday |
31 Oct | Diwali | Public holiday |
12 Dec | Jamhuri Day | Public holiday |
25 Dec | Christmas Day | Public holiday |
26 Dec | Boxing Day | Public holiday |
As per rule, if a public holiday falls on Sunday, then employers have to give that holiday on Monday.
Employee Leaves
Type of leave | Time Period | Mandatory |
Annual leave/Earned Leave | 21 days | Yes |
Sick Leave | 14 days (first 7 days fully paid, next 7 days half-paid) | Yes |
Maternity Leave | 12 weeks | Yes |
Leave Compliance
Payroll cycle
In Kenya, employers usually follow a monthly payroll cycle and make payment at the end of the month.
Minimum wage
The minimum wage in Kenya is KES 15,120 per month.
Overtime pay
Normal working hours shall not be more than 52 hours in week, distributed evenly over six days of the week.
Employers are liable to pay overtime to their employees as following:
Read more
Employers must retain income tax and social security contributions from the salaries of employees. In Kenya, the PAYE system is used to calculate these deductions. Every month, employer has to submit the deducted money to the KRA (Kenya Revenue Authority)
Employer Contributions | Employer Payroll Tax |
National Social Security Fund | KSH 200 per month |
National Industrial Training Levy (NITA) | 50 KES per employee |
Employee Contributions | Employee Payroll Tax |
National Social Security Fund (Pension) | KSH 200 per month |
National Hospital Insurance Fund (NHIF) ( Applicable on employees earning above 100,000 KES / month. From 1st Jan, 2022 tax relief will be applicable at 15% of the amount contributed) | 1700 KES |
Annual Taxable Income (KES) | Tax Rate (%) |
0-288,000 | 10 |
Next 100,000 | 25 |
Over 388,000 | 30 |
Value Added Tax (VAT) is applicable in Kenya, and it ranges between 0% – 16% depending on the nature of the goods.
There is no provision for paying 13th month pay in the country. It solely depends upon employers if they wish to pay any bonus to employees.
Employees are entitled to the following benefits:
As per Employment Act, employer needs to follow fair termination procedure as per the law or as per the contract signed between employee and employer. Employer has to give notice in writing and give a valid reason for termination.
The Notice period for Kenyan employees will be up to 28 days.
Yes, in case of redundancy, the employer has to pay a severance of not less than 15 days’ pay for each year completed of service.
For foreign nationals, to work legally in the country, there are some strict immigration rules. Under that, it is mandatory to obtain the following documents to work in Kenya.
Read more
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Overtime Pay
Minimum Wage
Overtime Pay
Overtime Working Hours | Compensation |
>52 hours | 1.5 times of normal hourly rate |
Employee working on rest day or public holidays | 2 times of normal hourly rate |
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