Kenya HR & Labour Law Glossary

A plain-English glossary of the HR and labour-law terms that matter most to employers in Kenya. Each entry links to a deeper guide where we have one.

PAYE

Pay As You Earn, the income tax an employer deducts from employees' salaries each month and remits to the Kenya Revenue Authority (KRA). Read more.

NSSF

National Social Security Fund, Kenya's mandatory pension scheme. Employer and employee each contribute 6% of pensionable pay, within set tier limits. Read more.

SHIF

Social Health Insurance Fund, the mandatory health contribution that replaced NHIF, deducted at 2.75% of gross salary (minimum KES 300) and remitted to the Social Health Authority. Read more.

Affordable Housing Levy

A statutory deduction of 1.5% of gross salary from the employee, matched by 1.5% from the employer, remitted to KRA to fund affordable housing. Read more.

Employment Act 2007

Kenya's principal employment law, setting the minimum terms, rights and obligations for employers and employees. Read more.

Minimum wage

The lowest wage an employer may legally pay, set by the government and tiered by job category and location. Read more.

Probation

An initial trial period of up to six months, with shorter (seven-day) notice, during which an employer assesses a new hire. Read more.

Casual employee

A worker engaged and paid by the day with no expectation of continued work; long or continuous engagement can convert this into a term contract by law. Read more.

Fixed-term contract

Employment for a defined period or project; statutory protections still apply during the term, and repeated renewals can create an expectation of permanence. Read more.

Notice period

The advance notice required to end employment, commonly 28 days for monthly-paid staff, or seven days during probation (or pay in lieu). Read more.

Unfair dismissal

Termination without a valid reason and/or a fair procedure, the most common basis for successful employee claims in Kenya. Read more.

Redundancy

Loss of employment because a role is no longer needed; it follows a specific legal procedure, including notice to the employee, union and labour officer. Read more.

Severance pay

Payment due on redundancy, calculated at 15 days' pay for each completed year of service, in addition to other terminal dues. Read more.

Gross misconduct

Serious wrongdoing (such as theft, violence or gross negligence) that may justify summary dismissal, still requiring a fair process. Read more.

Annual leave

Paid time off, a minimum of 21 working days after 12 consecutive months of service. Read more.

Sick leave

Paid leave when ill, at least 7 days full pay and 7 days half pay a year under the Act (more where the Wages Order applies), on a medical certificate. Read more.

Maternity & paternity leave

Three months (90 days) paid maternity leave and two weeks (14 days) paid paternity leave, in addition to annual leave. Read more.

HR audit

A structured review of contracts, policies, payroll and records against the law to find and prioritise compliance gaps. Read more.

OSHA

The Occupational Safety and Health Act 2007, the employer's duty to provide a safe workplace, including registration with DOSHS. Read more.

Employee handbook

A single document setting out workplace policies, conduct, leave and procedures for employees. Read more.

Performance management

The ongoing process of setting expectations, giving feedback and reviewing performance fairly and lawfully. Read more.

HR outsourcing

Engaging an external partner to run some or all of your HR function, from payroll and records to compliance and employee relations. Read more.

Talent acquisition

The strategic, long-term approach to attracting and hiring people, broader than filling a single vacancy. Read more.

Data Protection Act 2019

Kenya's data-protection law governing how organisations collect, store and use personal data, including employee data. Read more.