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Public Holidays Calendar

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Kenya 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Friday Apr-15 Good Friday
Monday Apr-18 Easter Monday
Sunday May-1 Labor Day
Monday May-2 Day off in lieu of Labor Day
Monday May-2 Festival of Breaking the Fast
Wednesday Jun-1 Madaraka Day
Monday Oct-10 Moi Day
Thursday Oct-20 Mashujaa Day
Monday Dec-12 Jamhuri Day
Sunday Dec-25 Christmas Day
Monday Dec-26 Boxing Day
Countrypedia

Kenya
Payroll and Benefits Guide

Last updated: Apr 12, 2022
Currency
Kenyan Shilling (KES)
Payroll Frequency
Monthly
Employer Taxes
6.00%+ 50 KES

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Kenya

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Overview

Capital
Nairobi
Currency
Kenyan Shilling (KES)
Date Format
dd/mm/yyyy
Fiscal Year
1 July - 30 June
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

6.00%

National Social Security Fund (NSSF) (Up to a maximum of 200 KSH per month)

1.5%*

National Housing Development Fund (NHDF)* * NHDF levy was passed by the government, but implementation is held up pending resolution of court challenges.

50 KES per employee

National Industrial Training Levy (NITA)

6.00%+ 50 KES Total Employment Cost

Employee

Employee Payroll Contributions

6.00%

National Social Security Fund (NSSF) (Up to a maximum of 200 KSH per month)

1.50%*

National Housing Development Fund* * NHDF levy was passed by the government but implementation is held up pending resolution of court challenges.

150 - 1,700 KES

National Hospital Insurance Fund (NHIF) (per employee earning more than 100,000 KES per month – with effect from 1/1/2022 tax relief will be applicable at 15% of the amounts contributed)

6.00% + 1,700 KES Total Employee Cost

Employee Income Tax

10.00%

Up to 24,000 KES (per month), 288,000 KES (per year)

25.00%

Next 8,333 KES (per month), 100,000 KES (per year)

30.00%

Income over 32,333 KES (per month), 388,000 KES (per year)

Minimum Wage

General

The monthly minimum wage varies depending on industry and geographical location and ranges from 13,572.90 KES for a cleaner or gardener to 30,627.45 KES for a cashier or heavy commercial driver.

Payroll

Payroll Cycle

In Kenya, the payroll frequency is monthly.  Work between the first and last day of the month is typically paid on the last day of the month. Casual employees are to be paid at the end of the workday.

13th Salary

There are no provisions in the law.

Working Hours

General

The standard working week should not exceed 56 hours.

Overtime

Maximum overtime per day should not exceed 4 hours. Overtime is paid at the rate of 150.00% of regular pay. 

Employers are required to provide extra pay to employees who work during night hours (between 10 pm and 6 am) if time off in lieu is not provided. The pay amount must be not less than 1.2 times the regular hourly salary. 

Working Week

Monday-Friday

Leave

Paid Time Off

An employee is entitled to a minimum of 21 days of paid annual leave after completing one year of employment.  Under the New Labour Law, new employees are entitled to an annual vacation from the 7th month of their employment commencement.  

An employer may, with the employee’s consent, divide the minimum annual leave entitlement into different parts to be taken at different intervals, however, an employee is entitled to 10 consecutive calendar days of leave at least once out of the minimum 15 calendar days leave. 

Public Holidays

There are 13 public holidays.  If a holiday falls on a Sunday, then the proceeding Monday is observed.   

Sick Days

After two consecutive months of service, employees are entitled to sick leave of not less than seven days at 100.00% of the employees’ regular salary. After that, a further seven days at 50.00% of the typical salary rate per year.

All sickness leave requires a professional medical certificate of incapacity to work.

Maternity Leave

Women are entitled to three months of maternity leave paid at 100.00% of the regular pay rate.  To be eligible, the woman must give at least seven days’ notice to their employer when the leave is intended to be taken and must provide a medical certificate.

In the event of adoption, the same laws for maternity and paternity leave apply. However, instead of 7 days’ notice, 14 days’ notice must be given to the employer.

Paternity Leave

Fathers are entitled to 2 weeks paid paternity leave.  

Parental Leave

In the event of adoption for married employees, the same laws for maternity and paternity leave apply, however, instead of 7 days’ notice for the mother, 14 days’ notice must be given to the employer.  

Other Leave

Parents who are preparing to adopt a child are eligible for one month of Pre-Adoptive leave with full pay. Parents must provide 14 days notice to their employer and show the relavent adoption papers.

Termination

Termination Process

Employers can terminate a fix term contract for the following reasons – business, personal or worker’s’ misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given with the employee given a chance to explain his/her actions.

When the employer initiates the termination of an employment agreement, the employer must pay final wages on the termination date. If the employee has been employed for more than one month, the employer is obligated to provide a certificate of employment.

Notice Period

Notice periods in Kenya are as follows:

  • Employees terminated during the probationary period should be given at least seven days’ notice.
  • Employees paid on a monthly or longer basis must be given at least 28 days’ notice of termination.

Severance Pay

The amount of severance pay due in the case of employment termination under certain circumstances is dependent on the employee’s length of service with that particular employer: Length of service with the employer The amount of severance pay 

6 months – 2 years: 1-month base salary 

2 -5 years:  2 months base salary 

5 – 10 years:  3 months base salary 

10 or more years:  4 months base salary

Probation Period

The probation period in Kenya is six months. If the employer dismisses the employee during this time, seven days’ notice or payment in lieu must be given.

An apprentice’s base salary shall not be less than 70% of a base salary of a full-time employee performing the same type of work. A probationary worker’s base salary must be the same as the base salary of the same position. 

VISA

VISA

Kenya’s immigration system provides several options for employers of foreign nationals. Most​ business travellers must apply for an eVisa to enter the country. Port-of-entry immigration officers will determine the authorised length of stay in Kenya, which is usually a maximum of 30 days, extendable twice for 30 days each at the Immigration Department in Kenya for a maximum of​ 9​0 days​.​

The Special Pass allows foreign nationals to conduct work activities for up to 90 days. Special Pass applications are filed at the Kenya Immigration Department Headquarters before the foreign national travels to Kenya.

The long-term work permit (Class D Permit) is suitable for skilled and experienced professionals or technical workers; it requires sponsorship from a Kenyan legal entity. Work permits are issued for one or two years ​and can be renewed for similar periods.​​

VAT

General

The standard VAT rate is 16.00%.

Version History

April 12, 2022
Payroll contributions and personal income tax rates have been updated.
The standard working week should not exceed 56 hours now.
Employers are now required to provide extra pay to employees who work during night hours (between 10 pm and 6 am) if time off in lieu is not provided. The pay amount must be not less than 1.2 times the regular hourly salary.
An employee is entitled to 10 consecutive calendar days of leave at least once out of the minimum 15 calendar days of leave.
January 1, 2021
Income tax: brackets have been amended, eliminating the 15% and 20% bracket and adding a new 30% bracket.
Stay up to date on payroll & employment law changes

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