Insights · Labour Law

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.

Written by the Virtual Ivy HR team

Virtual Ivy is a Nairobi-based HR consulting and recruitment firm with 10+ years’ experience helping startups, SMEs, NGOs and corporates across Kenya stay compliant and build high-performing teams. About Virtual Ivy · Book a free consultation.

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.

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