Employment in Kenya

Three-quarters of Kenya’s labour force of 18 million people earn their living from agriculture, including from subsistence farming and livestock herding, although accelerating urbanisation will have an impact on that figure. In total, 12.6 million Kenyans worked in the so-called ‘informal sector’ in 2015, a number that rose 6 per cent from the year before. Unemployment is calculated at 40 per cent, with 70 per cent of those aged under 35.

Kenya’s education landscape is changing dramatically and rapidly. At Independence in 1964, most adults did not have a formal education. Since 1980, the number of children going to primary school exceeded those that did not, and a decade later, in 1990, the number of children going to secondary school exceeded those that did not. In addition, there has been a significant rise in tertiary education establishments in the last decade, and the emphasis is now shifting to providing quality education and reflecting workplace needs.

There are several critical skills shortages in Kenya such as engineers, IT technicians, and health workers. Declining qualifications, little money for educational inputs, run down and over-burdened facilities, and limited incentives for research, make it hard to produce highly skilled personnel, the World Bank said in a continental report on the issue. Only 28 per cent of students are enrolled in science and technology programmes, a trend that risks failing to provide the knowledge and core skills required for development.

Kenya’s Employment Act, the Regulation of Wages and Conditions of Employment Act, and some common law, together govern employment contracts, wages, leave, rest, health and safety, and minimum wages. The Factories Act deals with health, safety and welfare of employees working in factories, and the Work Injury Benefits Act outlines compensations for people injured at work.

Employment Contracts

Within two months of starting any job, a Kenyan should be given a contract, or a written employer-employee agreement, listing the terms of his or her engagement.

The four main types of contracts under which an employer can employ an individual include:

A contract for a specified duration of time
A contract for an unspecified period of time that can be terminated by notice of either side
A contract for a specific task that ends when the employee completes the task
A contract for casual employment paid at the end of every day

The contract or employee-employer agreement should include:

Employee’s name, age, sex and permanent address
Employer’s name
Date the employment starts
Employee’s Terms of Reference including their specific duties and responsibilities
Contract duration and whether it is fulltime or part-time, and permanent or temporary
Place and hours of work
Remuneration and other benefits (e.g. National Health Insurance Fund), period of leave, and other entitlements
The respective rights and obligations of both the employer and employee
Employee Rights and Benefits
21 working days per year of leave with full pay
At least one rest day in every seven days
Termination of employment after a notice minimum one month
Pay of 1.75 days of leave for each completed month of service
Paid three months of maternity leave for women.
Paid two weeks’ paternity leave for male employees.
Paid sick leave up to 14 days per year
Housing allowance
Overtime allowance for some industries
Safe working conditions
Redundancy pay equivalent to 15 days’ pay for every year worked, plus one month’s wages in lieu of notice, accrued leave payments, and all other benefits due

Social Security

Every Kenyan has the right to social security, and the National Social Security Fund (NSSF) is the largest provider, covering almost all formally-employed workers, and recently extended to assist those working in the informal sector, or temporarily employed. NSSF has a pension fund and a provident fund. All employers must register with the pension fund, and ensure that all their employees aged 18 to 60 are registered members. Employers pay six per cent of the worker’s pay into the fund by the middle of the month following the payment – there are strict penalties for late payments – and the worker adds another six per cent. Employers should keep good records of their contributions, and of their employees’. Employers with private retirement schemes that meet certain criteria may apply to opt-out of some NSSF requirements. For more details, consult appropriate legal advice and www.nssf.or.ke.

Layoffs or Termination of Employment

Employers who need to terminate an employee’s contract must give a minimum of 30 days’ notice or pay the equivalent wages in lieu of notice, ensure that all outstanding dues are paid, and provide a certificate of service and references, if the employee asks for it. These terms do not apply for casual labourers. If a position becomes redundant, the last employee holding that job must be paid a severance package equivalent to at least 15 days of pay per completed year of service.

Labour Relations

Both workers and employers may form and join labour unions or trade organisations. The Central Organisation of Trade Unions (Cotu) is Kenya’s umbrella body governing 30 unions from all economic sectors, and the Federation of Kenya Employers (FKE) represents the collective interests of employers.

Employing Non-Kenyans

Kenya has a huge expatriate workforce that ranges from executive officers of multinational companies to labourers hired to complete specialised infrastructure contracts. All must have a valid work permit, which is granted by the Ministry of Immigration, and which fall into one of seven ‘Classes’.

Employee rights and benefits

21 working days per year of leave with full pay
At least one rest day in every seven days
Termination of employment after a minimum of one month’s notice
1.75 days paid leave for each completed month of service
Three months paid maternity leave for women.
Two weeks’ paid paternity leave for male employees.
Paid sick leave of up to 14 days per year
Housing allowance
Overtime allowance for some industries
Safe working conditions
Redundancy pay equivalent to 15 days pay for every year worked, plus one month’s
wages in lieu of notice, accrued leave payments, and all other
benefits due