The Employment Act 2007 is Kenya’s principal employment statute, setting the minimum standards for the relationship between employer and employee: written contracts, working time, leave, termination and redundancy. For a UK business engaging Kenyan staff, whether through its own entity or an Employer of Record, these are the rules that define what a compliant employment relationship looks like. Operating within Kenya’s Common Law system, the Act gives UK employers a recognisable framework. This guide walks through the core obligations.
Key Facts
| Item | Position under the Act |
|---|---|
| Governing statute | Employment Act 2007 |
| Legal tradition | Common Law derived from English law |
| Written particulars | Required for qualifying engagements |
| Working time | Regulated; rest days and overtime addressed |
| Annual leave | Statutory minimum paid leave |
| Sick leave | Statutory entitlement with conditions |
| Maternity and paternity leave | Statutory entitlements provided |
| Termination | Must be substantively and procedurally fair |
| Redundancy | Defined process including notice and consultation |
| Statutory payroll | PAYE, NSSF, SHIF, Housing Levy run alongside |
Key terms
- Written particulars
- The statement of employment terms an employer must give an employee, covering matters such as job, pay, hours and notice.
- Substantive fairness
- The requirement that a dismissal rests on a valid, lawful reason.
- Procedural fairness
- The requirement that the employer follows a fair process, including notice and a hearing, before dismissal.
Contracts and written particulars
Answer: The Act requires employers to provide written particulars of employment for qualifying engagements, setting out the key terms in a clear, recordable form.
Written particulars typically cover the identity of the parties, the job, remuneration, hours, leave and notice. Putting terms in writing is not merely good practice in Kenya; it is a statutory expectation that protects both sides and provides the evidential baseline if a dispute arises. Because the system is Common Law, the contract is interpreted on familiar principles, which makes UK-style drafting workable. Where staff are engaged via an Employer of Record, the EOR issues the compliant Kenyan contract.
Working time and leave
Answer: The Act regulates working hours, rest and a suite of statutory leave entitlements, including annual, sick and parental leave.
| Entitlement | Nature |
|---|---|
| Working hours and rest | Regulated, with rest days and overtime treatment |
| Annual leave | Statutory minimum of paid leave per year |
| Sick leave | Paid entitlement subject to conditions |
| Maternity leave | Statutory paid entitlement |
| Paternity leave | Statutory paid entitlement |
For UK businesses, the headline is that Kenyan staff accrue genuine statutory protections that must be honoured. Time zone alignment helps day to day: Kenya is GMT+3, giving a 5-6 hour overlap with the UK working day, so leave and scheduling are easy to coordinate. See our note on GMT+3 working overlap for how the day maps.
Termination and notice
Answer: Termination must be both substantively fair, resting on a valid reason, and procedurally fair, following proper notice and a fair hearing.
Kenya does not permit dismissal at will. An employer must have a legitimate reason and must follow due process, which generally includes giving the employee notice and an opportunity to respond before a decision is made. Unfair termination can expose the employer to claims. This two-limbed test, substance and procedure, will feel familiar to UK employers used to the concept of fair dismissal. An EOR managing the relationship carries responsibility for following the correct procedure.
Redundancy
Answer: Redundancy is a defined process under the Act, requiring notice and consultation rather than abrupt dismissal.
Where a role genuinely ceases to be required, the Act sets out how the employer must proceed, including notification and consultation steps and the treatment of terminal dues. Handling redundancy correctly is one of the areas where local expertise matters most, and where the protection of an experienced EOR is valuable. Redundancy obligations also interact with the statutory payroll items that run throughout the relationship, set out in the PAYE compliance guide and the NSSF employer obligations guide.
Where this sits in the framework
Employment law is one of the four pillars of the UK-Kenya compliance framework, alongside data protection, tax and payroll. The Employment Act 2007 defines the floor; statutory payroll defines the monthly mechanics; and the engagement model, often an EOR, determines who carries the obligations day to day.
Key Takeaways
- The Employment Act 2007 governs contracts, working time, leave, termination and redundancy in Kenya.
- Written particulars of employment are a statutory expectation for qualifying engagements.
- Termination must be both substantively and procedurally fair; dismissal at will is not permitted.
- An Employer of Record can carry these obligations so a UK firm need not establish its own Kenyan entity.
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Frequently Asked Questions
What does the Employment Act 2007 govern?
It is Kenya’s principal employment statute, governing written contracts, working time, leave, termination and redundancy. It sets the minimum standards that any employer, including an Employer of Record, must meet.
Does an employee need a written contract in Kenya?
Yes. The Employment Act 2007 requires employers to provide written particulars of employment, covering matters such as job, pay, hours and notice, for engagements beyond a short threshold.
How is termination handled under the Act?
Termination must be both substantively fair (a valid reason) and procedurally fair (proper notice and a fair process). The Act sets notice requirements and a procedure for hearings before dismissal.
Can a UK firm meet these obligations without a Kenyan entity?
Yes, through an Employer of Record. The EOR becomes the legal employer in Kenya and carries the Employment Act 2007 obligations, while the UK company directs the work.
Sources & References
- Office of the Data Protection Commissioner (Kenya), “Kenyan legal framework,” accessed 2026-06-13. https://www.odpc.go.ke/
- PwC, “Kenya — Individual — Other taxes” (Worldwide Tax Summaries), accessed 2026-06-13. https://taxsummaries.pwc.com/kenya/individual/other-taxes
Published by Outsourcing.ke.
Further Reading
- Kenya Common Law System — the legal tradition behind the Act
- PAYE in Kenya: Employer Compliance Guide — statutory payroll alongside employment law
- NSSF Employer Obligations — the pension rules in detail
- Employer of Record Kenya — EOR services for UK companies expanding to Kenya