Business Kenya: A Summary of Kenya Labour Laws

Business Kenya. Experience the joys of inexpensive labour. We have some many people looking for jobs and very few people offering places.

There are many laws that govern employment in Kenya. You can get more information from these Acts of Parliament:

  • Employment Act
  • Collective Bargaining Agreement.
  • Regulation of Wages and Conditions of Employment Act
  • Industrial Training Act
  • Workmen’s Compensation Act
  • Shop Hours Act
  • Mombasa Shop Hours Act
  • Factories Act
  • Trade Unions Act
  • Trade Disputes Act
  • Companies Act
  • Bankruptcy Act
  • Merchant Shipping Act
  • Export Processing Zone’s Act
  • Immigration Act
  • Pension Act
  • Retirement Benefits Act
  • National Social Security Fund Act
  • National Hospital Insurance Act
  • Provident Fund Act
  • Public Health Act

You can obtain a copy from government printers on Haile Sellasie Road or download from the internet on Kenya Law Reports

Here I will tell you about some of the important issues in hiring, keeping and firing staff.

Business Kenya: Wages

Wage payments are outlined in the collective bargaining agreement for unionized workers. For non unionized workers, check the minimum wage guidelines from the Ministry of Labour.

The usual work week here contains 45 hours (from 8am to 5pm Monday to Friday plus 5 hours on Saturday. We also have national holidays that are usually paid holidays;

  • New Year's Day- 1st January
  • Good Friday- World Calendar
  • Easter Monday- World Calendar
  • Labour Day- 1st May
  • Madaraka Day- 1st June
  • Idd-Ul-Fitr- Muslim Calendar
  • Kenyatta Day- 20th October
  • Christmas Day- 25th December
  • Boxing Day- 26th December
  • Moi Day- 10th October
  • Jamhuri day- 12th December

Wages are usually paid at the end day for casual labourers or at the end of the month for contract based or permanent employees.

Overtime payments are usually as outlined below;

  • Hours done in excess of the normal number of hours per week is at one and one - half (1½) times the normal hourly rate.
  • For time worked on the employees' normal rest day or public holiday at twice the normal hourly rate.
  • Overtime plus time worked in normal hours per week shall not exceed 116 hours in a period of two consecutive weeks.

Sometimes, and this happens a lot in business in Kenya, employers do not pay their employees in time. This can cause stealing of time and money or property from you.

Business Kenya: Leave

The Employment Act outlines the leave that is available to your employees.

Annual Leave

Where a worker has remained in continuous employment with the same employer for 12 months of service, he is entitled to a minimum of 21 days leave with full pay.

Pro-rata leave

Where an employee does not take his leave, he shall be paid for the leave days due to him. Where employment is terminated after the completion of two or more consecutive months of service during any twelve months leave earning period, he shall be paid an amount equal to two day's leave plus full pay for each completed month of service.

Sick Leave

After two months of continuous service, an employee is entitled to 30 days sick leave with full pay.

Maternity Leave

A woman employee shall be entitled to two months maternity leave with full pay.

Business Kenya: Deductions

There are various deductions that you need to make. This include PAYE -pay as you earn, NHIF - National Hospital Insurance Funds, NSSF - National Social Security Fees, loan reduction, absenteeism etc.

Business Kenya: Work Ethics

One thing I would readily say of the job market in Kenya is that Kenyans are hardworking. The challenge you may find is lack of professionalism amongst many workers. This however can be changed by the work culture that you create at your business work place.

You may also find some more detailed information about these Laws regulating business in Kenya!!



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