Labor Law

Kenya recognizes three main types of contracts: permanent contracts (unlimited duration), fixed-term contracts (specific duration, typically 1-3 years), and casual contracts (short-term, task-based work). All contracts must comply with the Employment Act 2007 and include key terms such as job description, salary, benefits, and working hours. Written contracts are strongly recommended to protect both employer and employee rights.

Employees in Kenya can only be dismissed for just cause, which includes serious misconduct, poor performance with documented warnings, or redundancy. Employers must follow a fair disciplinary process including written notice and opportunity to respond. Dismissal without just cause entitles employees to compensation, typically ranging from one month's salary for each year of service. Wrongful dismissal cases can be referred to the Industrial Court.

Kenyan employees are entitled to a minimum of 21 calendar days of annual leave per year, as per the Employment Act 2007. For employees who work on a shift basis or in specific industries, different arrangements may apply. Unused leave can typically be carried forward to the next year, though many employers pay out accrued leave upon termination of employment.

As of 2024, Kenya's national minimum wage is KES 35,000 per month for private sector employees in the Nairobi area, with variations in other regions. The government reviews minimum wages annually in consultation with employers and labor unions. Different rates may apply to agricultural workers, domestic workers, and other specific sectors. It is important to verify current rates with the Ministry of Labor.