Redundancy in Kenya: The Correct Legal Procedure
Redundancy is one of the most procedurally strict areas of Kenyan employment law. Even a genuine business need can become an unfair-termination claim if the process is wrong. Here is how to handle redundancy correctly under the Employment Act 2007.
Redundancy must be genuine
Redundancy applies where a role is no longer needed, due to restructuring, economic reasons, or changes in operations. It must not be used as a cover for removing a specific person.
Notice requirements
The Employment Act requires notice to the affected employees and, where a union is involved, to the union, as well as notification to the labour officer within the statutory timelines.
Fair selection
Where some roles are kept, selection must be fair and objective, commonly using criteria such as skills, seniority and performance, applied consistently.
Genuine consultation
Consult affected employees properly, explaining the reasons and exploring alternatives before finalising decisions.
Final dues
Redundancy attracts specific payments, including severance pay, accrued leave and notice pay, in addition to normal final dues.
Get it right the first time
Redundancy done wrong is expensive. Take advice before you start. See our labour law compliance and HR consulting support.
Disclaimer: This article is general guidance for educational purposes and is not legal advice. Statutory rates and requirements change. For advice specific to your organisation, speak to a qualified HR or legal professional.