Employment Contract Kenya: What Must Be Included by Law
Every Kenyan employer must issue a written employment contract. Here's exactly what the Employment Act 2007 requires — and what happens if you skip it.
If you've ever hired someone in Kenya on a handshake deal, you've taken a serious legal risk. Under the Employment Act 2007, every employer in Kenya is legally required to provide a written statement of particulars to any employee working for 3 months or more. This isn't optional — it's the law.
Whether you're hiring a full-time employee, a part-time worker, or a casual labourer, a proper employment contract protects both you and the person you hire. This guide covers exactly what must go in it.
Why Written Contracts Are Required in Kenya
The Employment Act 2007 came into force in 2007 and fundamentally changed the employment landscape in Kenya. Section 10 of the Act specifically requires employers to issue a written contract or statement of terms within 2 months of employment commencing.
Legal risk: An employer who fails to issue a written contract can be prosecuted and fined. More practically, in a dispute, the Employment and Labour Relations Court will side with the employee if no contract exists — leaving you with no documented terms to enforce.
What Must Be in an Employment Contract (Kenya)
The Employment Act specifies the minimum particulars that must appear in any employment contract:
- Full name and address of both employer and employee
- Job title and description of duties
- Date of commencement of employment
- Place of work
- Basic salary or wages (must be stated in KES)
- Method and frequency of payment (monthly, weekly, etc.)
- Hours of work (maximum 45 hours per week under the Act)
- Annual leave entitlement (minimum 21 working days after 12 months)
- Sick leave entitlement (minimum 7 days full pay, 7 days half pay)
- Notice period for termination (minimum 28 days for monthly-paid employees)
- Probationary period if applicable
Working Hours and Overtime
The Act caps normal working hours at 45 hours per week. Any work beyond this is overtime and must be compensated at a minimum rate of 1.5× the normal hourly rate. For work on public holidays or Sundays, the rate is 2× the normal rate.
Many Kenyan employers get into trouble by not defining working hours in the contract, then expecting unlimited availability from employees. Specify hours clearly.
Leave Entitlements You Cannot Skip
| Leave Type | Minimum Entitlement | When It Applies |
|---|---|---|
| Annual Leave | 21 working days | After 12 consecutive months |
| Sick Leave | 7 days full pay + 7 days half pay | Per year, with medical certificate |
| Maternity Leave | 3 months full pay | Once every 3 years |
| Paternity Leave | 2 weeks full pay | On birth of a child |
| Public Holidays | All gazetted public holidays | As gazetted annually |
How to Terminate an Employee Legally
This is where most Kenyan employers get taken to the Employment and Labour Relations Court. You cannot simply dismiss an employee without following due process, even during probation.
- Notice period: Minimum 28 days written notice for monthly-paid employees, or salary in lieu of notice
- Summary dismissal: Only for gross misconduct (theft, insubordination, fraud) — still requires a fair hearing
- Redundancy: Must follow specific procedures including notification of the Director of Labour
- Unfair dismissal: Employee can claim up to 12 months' salary as compensation
Practical tip: Always include a probationary period (typically 3–6 months) in your contract. During probation, either party can terminate with 7 days' notice. This gives you time to assess performance without the full legal exposure of a permanent contract.
Dispute Resolution
Employment disputes in Kenya are handled by the Employment and Labour Relations Court — a specialized court established under Article 162(2) of the Constitution. It handles claims for unfair dismissal, unpaid wages, discrimination, and breach of contract.
A well-drafted contract should include a clause requiring the parties to attempt mediation or conciliation before going to court — this saves time and money for both sides.
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