What this document covers
Employer and employee details
Job title and department
Start date and place of work
Salary, benefits, and statutory deductions (NSSF, NHIF, PAYE)
Working hours and overtime policy
Annual leave and sick leave entitlements
Probation period and performance review
Notice period for termination
Governing law (Employment Act 2007)
Frequently Asked Questions
What must a permanent employment contract include under Kenyan law?
Under the Employment Act 2007, a written employment contract must include: parties' names, job title, start date, place of work, remuneration and benefits, working hours, leave entitlements, and notice periods. It must also specify statutory deductions (NSSF, NHIF, PAYE) and comply with minimum wage requirements.
What is the minimum notice period for terminating a permanent employee in Kenya?
Under the Employment Act 2007, the minimum notice period is: 1 day for daily-rated workers, 1 week for weekly-rated workers, 1 month for monthly-rated workers. The contract may specify a longer period, which takes precedence. Summary dismissal (no notice) is only permitted for gross misconduct.
Is a Kenyan employment contract valid for employees working remotely in other countries?
A Kenyan employment contract governs the employment relationship in Kenya. If an employee works in another country, that country's employment laws may also apply — particularly for minimum wages, leave, and termination rights. Legal advice in the employee's jurisdiction is recommended for remote international hires.
What statutory deductions must a permanent employment contract cover in Kenya?
A Kenyan employment contract must address PAYE income tax (deducted by the employer under the Income Tax Act), NSSF contributions (minimum KES 2,160/month employer + employee under the NSSF Act 2013), SHIF contributions (2.75% of gross salary under the Social Health Insurance Act 2023), and the Affordable Housing Levy (1.5% employer + 1.5% employee under the Finance Act 2023).
What is a probation period under Kenyan employment law?
The Employment Act 2007 permits a probation period of up to 6 months (extendable by mutual agreement to 12 months). During probation, either party can terminate with 7 days' notice or pay in lieu. After probation, the full notice period in the contract applies. The contract must specify the probation period and any reduced notice terms that apply during it.
Can an employer terminate a permanent employee without cause in Kenya?
No. The Employment Act 2007 requires a valid reason for termination (related to conduct, capacity, or operational requirements) and a fair process. Termination without cause or without following due process is unfair dismissal, entitling the employee to compensation at the Industrial Court — up to 12 months' gross pay.
Is a Kenyan employment contract valid for employees working remotely from other countries?
A Kenyan employment contract governs the employment relationship in Kenya. For employees based abroad, the host country's employment laws will typically apply in addition to (or instead of) Kenyan law. If you are hiring a remote employee outside Kenya, seek legal advice in the employee's jurisdiction to understand your obligations.
What must an employer do at the end of employment in Kenya?
On termination, an employer must: pay all outstanding salary and accrued leave, issue a certificate of service (required by the Employment Act 2007 on request), deregister the employee from NSSF and SHIF, and process any statutory redundancy pay if applicable. Failing to issue a certificate of service is a criminal offence under the Employment Act.