Kenya: Payroll & Employment Facts
Verified statutory employment facts for Kenya, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Kenya employer-of-record guide and the Kenya country hub.
What is the minimum wage in Kenya?
| National minimum wage |
No single national rate; set by sectoral Wage Orders. General labourer: KES 8,109.90/month (rural) to KES 15,201.65/month (Nairobi, Mombasa, Kisumu).
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What employer social contributions apply in Kenya?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
6.00%
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|---|---|
| Pension |
0.00%
|
| Healthcare |
0.00%
|
| Affordable Housing Levy (AHL) |
1.50%
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| National Industrial Training Levy (NITA) |
50 KES/month/employee
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| Annual contribution ceiling |
432,000 KES/year
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| Total employer burden |
7.50%
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What notice and leave rules apply in Kenya?
Statutory minimum notice the employer must give, by completed length of service.
| Statutory notice |
28 days where wages are paid monthly; equal to the wage-payment interval where shorter (Employment Act 2007 s.35).
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| Payment in lieu of notice (PILON) |
Permitted
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|---|---|
| Minimum annual leave |
21 working days
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| Annual leave includes public holidays |
No
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| Public holidays per year |
12 days
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Is 13th-month pay required in Kenya?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
No
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|---|---|
| Profit sharing required |
No
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| Holiday bonus required |
No
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How is severance calculated in Kenya?
| Formula |
An employer must pay a redundant employee severance pay at the rate of not less than fifteen (15) days' wages for each completed year of service.
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|---|---|
| Per-year multiplier |
0.5 months of pay
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| Minimum qualifying tenure |
12 months
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| Calculation base |
Regular
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Worked example
An employee with 5 completed years of service and an annual salary of £30,000 (approx. 5,400,000 KES at a hypothetical rate of 1 GBP = 180 KES). The monthly salary is 450,000 KES. Severance pay is 15 days' pay (equivalent to 0.5 months' pay) for each of the 5 years. Calculation: (0.5 * 450,000 KES) * 5 years = 1,125,000 KES (approx. £6,250).