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Written Agreements

In Kenya, employment contracts can be oral or written. Written contracts are only required if the employment relationship is 3 months or longer.

The following information must be outlined in a written labor agreement supplied to an employee within 2 months of the employment start date:

• Name, age, permanent address, and sex of the employee
• Name of employer
• Employment start date
• Job description
• Form and duration of the contract
• Place and hours of work
• Salary, wage rate, and details of any benefits
• Pay frequency

Employers can include non-compete or non-solicitation clauses in employment contracts. As per the Contracts in Restraint of Trade Act, the High Court is empowered to declare a provision or covenant void if it determines, considering the nature of the profession, trade, business, or occupation involved, as well as the specified duration, geographical scope, and all relevant circumstances, that the provision or covenant is unreasonable. This unreasonableness may stem from it providing excessive protection to the party it favors beyond what is necessary or if it is detrimental to the public interest.

Oral Agreements

In Kenya, oral contracts are permitted if the duration of an employment relationship is anticipated to be less than 3 months. A written statement must be provided to the employee within 2 months of the employment start date.

Implied Agreements

Kenya's Employment Act includes in its definition of a "contract of service" an implied contract to employ an individual for a period of time (this includes apprenticeship contracts).

Kenyan caselaw may indicate under what circumstances an employment contract may be implied.

In Kenya, the standard workweek cannot exceed 52 hours over 6 working days. For persons employed in night work, weekly working hours cannot exceed 60. All employees are entitled to at least 1 day of rest every 7 workdays.

January 1 (New Year’s Day); Good Friday (date variable); Easter Monday (date variable); May 1 (Labour Day); June 1 (Madaraka Day); Eid al-Fitr (End of Ramadan); October 10 (Moi Day); October 20 (Mashujaa Day, formerly Kenyatta Day); December 12 (Jamhuri Day); December 25 (Christmas Day); December 26 (Boxing Day); Eid al-Adha (TBD, for Muslims); Diwali (TBD, for Hindus).

Probationary periods may not exceed 6 months unless the employer and the employee mutually agree to an extension (up to 6 months).

A notice period of 7 days (or payment in lieu of notice for employers) is required to terminate an employee's contract by either party during the probation.

In 2021, the Employment and Labour Relations Court in Nairobi ruled Section 42(1) of the Employment Act unconstitutional. This provision had allowed employers to bypass the procedural fairness requirements of Section 41 when dismissing probationary employees. The court's ruling affirmed that all employees, including those on probation, have the right to a fair hearing before termination.

Notice Period

The labor law delineates the types of notices required for different employment contracts. The notice must be given in writing in all cases, but an agreement between employees and employers can increase its duration.

There is also a provision for payment in lieu of notice, which is permitted for terminated contracts with wages paid in intervals over 1 month. In this case, the employer must pay the terminated employee the amount they would have earned during the notice period before termination.

Employers are not required to give employees a notice period if the employee is dismissed for gross misconduct.

Severance Benefits

Kenya's Employment Act dictates that statutory severance benefit is paid only when an employee is dismissed for redundancy, and the employee must have been employed for 12 months. This severance pay rate may not be less than 15 days for each year of the employee's continuous service.

Minimum Wage

The current minimum wage rates range from KES 8,596.494 (Kenyan shillings) to KES 36,360.92 per month and differ based on industry, job grade, and geographic region.

Employers' failure to pay the statutory minimum wage is considered an offense, punishable by a fine of up to KES 100,000 and imprisonment for 2 years.

According to the Employment Act of Kenya, employers are required to pay wages as follows:

• In the case of a casual employee, at the end of the day
• In the case of an employee employed for a period of more than a day but not exceeding 1 month, at the end of that period
• In the case of an employee employed for a period exceeding 1 month, at the end of each month or part thereof
• In the case of an employee employed for an indefinite period or on a journey, at the expiration of each month or of such period, whichever date is the earlier, and on the completion of the journey, respectively

Overtime, Holiday & Vacation Pay

Employees who work beyond the regular hours scheduled per week are eligible for overtime pay at 150% of their normal pay rate.

Employees who work on nationally recognized public holidays or their weekly rest days are considered to be working overtime and are eligible for a pay rate of 200% of their normal pay rate.

The employer fully pays annual leave.

Visas

The following types of visas are issued in Kenya:

• Single journey visa - granted for single or multiple entries to persons whose nationalities require visas to enter Kenya.
• Transit visa - issued for periods not exceeding 3 days to persons whose nationalities require visas to enter Kenya and who intend to transit through Kenya to a different destination
• Diplomatic visa - issued for single or multiple entries to holders of Diplomatic passports who are on official duty
• Courtesy (official) visa - issued to persons holding official or service passports on official duty and ordinary passport holders who are not entitled to a diplomatic visa but whose visit is considered to be desirable on the grounds of international courtesy
• East Africa tourist visa - a joint tourist visa that entitles holders to travel to and within the Republic of Kenya, the Republic of Uganda, and the Republic of Rwanda. It is valid for 90 days and allows multiple entries
• Digital Nomad visa - introduced in October 2024, this visa permits remote workers to live and work in Kenya. Applicants need to provide proof of remote employment, accommodation in Kenya, a clean criminal record, and an annual income of at least USD 55,000. it is issued for 1 or 2 years, and is renewable

Work Permits

All foreign citizens must be in possession of a work/resident permit or an exemption before accepting employment in Kenya. Categories of permits include:

• Class A - Miners or those prospecting for minerals
• Class B - Agriculture and animal breeding industry prospects
• Class C - Prescribed profession
• Class D - Employee offered employment
• Class F - Specific manufacturing (proof of investment is necessary)
• Class G - Investors in a specific trade, business, or consultancy (proof of investment is necessary)
• Class I - Work/residence permit for a missionary pre-approved by the Government of Kenya
• Class K - Residence permit for individuals at least 35 years old with foreign income who will not undertake paid employment in Kenya (proof of foreign income is necessary).
• Class M - Conventional refugees
• Class N - Digital nomads who work under an employment contract for a company registered outside Kenya, or offer services as a self-employed to clients who are located outside Kenya