HR Software for Kenya

Leave Policy

Maternity Leave

Pregnant employees are entitled to 3 months of paid leave. The employee receives 100% of her salary during this period and the employer is responsible for this compensation.
Maternity leave cannot be extended.

You can use the leave module in IceHrm to manage maternity leave in Kenya.

Paternity Leave

Employees are entitled to 2 weeks of paid paternity leave. The employee receives 100% of his average salary during this period and the employer is responsible for this compensation.
The employee cannot extend the vacation.

Parental Leave

Parental leave is not regulated by law in Kenya. However, employees may be entitled to maternity and paternity leave.

Sick Leave

After two consecutive months of service, the employee is entitled to 30 working days of sick leave at full pay and thereafter to 15 working days of sick leave at half pay in each twelve consecutive month period of service.

Some employers provide a minimum sick leave of 14 days depending on the employee’s category.

Pay & Tax

Minimum Wage Requirements

The minimum wage is KES 13,572 per month.

Individual Income Tax

Individual income tax is between 10% and 30%. Income tax is calculated using progressive rates and the government applies a payroll tax model.

Gross Annual IncomeTax Rate (%)
On the first 288,00010%
On the next 100,00025%
On all remaining income in excess of 388,00030%

Payroll Cost

Employer costs are generally estimated at 6.91% of employee salary.

  • Contribution to the National Social Security Fund – 6.0%*
  • WIBA (Work Injury Benefits Act) contribution – 0.91%
  • NITA (National Industrial Training Authority) Contribution – 50 KES

*up to a maximum contribution salary of KES 36,000.

Overtime Pay & Maximum Hours

Overtime pay is not mandatory for senior employees as the additional hours worked count towards their salary.
Overtime pay is mandatory for junior employees. Hours outside of normal working hours are considered overtime. Employees can work a maximum of 52 hours per week (12 hours of overtime).
For additional hours, employees receive 1.5 times the regular hourly wage and 2 times the regular hourly wage if the overtime falls on a rest day or a holiday.
Normal working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps in certain termination cases.

Layoffs in Kenya can be complex. Outside the probationary period, the employer in Kenya cannot terminate at his own discretion and the termination must be for a valid reason.

Compliant terminations are:

  • Voluntary by the employee
  • By mutual agreement
  • Unilaterally by the employer, depending on whether the employee:
    1. Wrongdoing
    2. Inability to work (due to performance or illness)
    3. Dismissal
  • By expiry of the contract

Notice Period

The minimum notice period is 1 month if wages are paid monthly and can be increased. If wages are paid daily, there is no statutory notice period.

Severance for Employees

Severance pay is only payable if the termination of employment is due to dismissal and is paid at the rate of 15 days for each year of work.

In order to protect you from unforeseen financial risks arising from the termination of the employment relationship, IceHrm applies a severance pay provision to all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk globally and our severance provision calculation is based on prevailing common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 21 days of paid time off per year. PTO is credited monthly, with 1.75 days of PTO per month. Employees are entitled to annual leave at the start of their employment once they have accumulated it.

Public Holidays

There are 13 public holidays celebrated in Kenya. National holidays include:

  • New Year’s Day
  • Good Friday
  • Easter Monday
  • Labour Day
  • Id-ul-Fitr
  • Madaraka Day
  • Idd-ul-Azha
  • Utamaduni Day
  • Mashujaa Day
  • Jamhuri Day
  • Christmas Day
  • Boxing Day
  • Christmas Holiday

Onboarding

Onboarding

Onboarding takes 1 working day after the customer signs the SOW.

Additional Info

Employment Contract Details

Employer costs are generally estimated at 6.2% of employee salary.

  • Contributions to the training fund – 50 KES
  • National Social Security Fund – 6.0%

Once a law is enacted, additional employer costs may apply. There is currently no specific date.

  • National Housing Development Fund (NHDF) – 1.5%

Probation Period

Employees hired through IceHrm have a probationary period of 90 days, which you can extend up to 180 days. From January 2022, it is IceHrm’s company policy to include probationary periods in all employment contracts.

The probationary period helps employers and employees make sure they are a good fit for each other. This allows the company to quickly decide whether the position is right for them, and the employee can see whether it matches their career goals.