Employment contract in Kenya: Template, Key Clauses and Local Law (2026)

What is an employment contract in Kenya, and what does the law require? An employment contract in Kenya is the agreement between an employer and an employee that sets out the job, the pay and the terms of work. The main statute is the Employment Act 2007, which sets minimum terms that a contract cannot undercut. It is supported by the Labour Relations Act, the Occupational Safety and Health Act, and the statutes that run the social schemes, namely the NSSF Act 2013 for the pension fund and the Social Health Insurance Act 2023, under which SHIF replaced the old NHIF in 2024. The Employment Act requires a written contract for any engagement that is to last three months or more, or that involves work that cannot reasonably be completed within three months. The written particulars must cover the parties, the job, the pay and how it is calculated, hours, leave and the notice needed to end the contract. If there is no written contract, the burden of proving the agreed terms falls on the employer. The Act also sets statutory minimums: paid annual leave of at least 21 working days after twelve consecutive months of service, notice for termination that depends on how pay is calculated, fair reasons and fair procedure for dismissal, and minimum wages set by wage orders. On top of pay, employers deduct and remit NSSF contributions, SHIF contributions and PAYE income tax, and the Affordable Housing Levy where it applies. This article is general information, not legal advice. Rates and wage orders change, so confirm the current position with a Kenyan advocate, the Ministry of Labour, NSSF, the Social Health Authority and KRA. Last verified October 2026. ## A Kenya employment contract template you can copy ```

CONTRACT OF EMPLOYMENT This Contract is made on [DATE] BETWEEN: [EMPLOYER NAME], of [address] ("Employer") AND [EMPLOYEE NAME], ID [number], of [address] ("Employee") 1. POSITION AND DUTIES The Employer employs the Employee as [JOB TITLE], reporting to [ROLE], with the duties set out in [the job description]. 2. COMMENCEMENT AND PROBATION Employment begins on [START DATE]. The first [N] months (maximum six) are a probation period, which either party may end on [seven] days notice. 3. PLACE AND HOURS OF WORK The place of work is [location]. Normal hours are [hours] per week, with [one] rest day each week. 4. REMUNERATION The Employer pays a gross salary of KES [amount] per month, by [method], on or before the [N]th of each month, subject to PAYE, NSSF, SHIF, the housing levy where applicable, and lawful deductions. 5. STATUTORY DEDUCTIONS AND CONTRIBUTIONS The Employer will deduct and remit the Employee's statutory contributions and pay the employer's share for NSSF and SHIF as the law requires. 6. LEAVE Annual leave: [21] working days of paid leave after 12 months of service. Sick leave, public holidays, and maternity or paternity leave apply as the Employment Act provides. 7. CONFIDENTIALITY The Employee will keep the Employer's confidential information secret during and after employment and use it only for the Employer's business. 8. INTELLECTUAL PROPERTY Work the Employee creates in the course of employment belongs to the Employer, and the Employee assigns such rights to the Employer. 9. TERMINATION AND NOTICE After probation, either party may end the contract on [N] [days / one month] written notice, or pay in lieu, and never less than the statutory minimum. Termination must be for a fair reason and follow a fair procedure. The Employer may dismiss summarily for gross misconduct after a fair hearing. 10. RESTRICTIVE COVENANTS [Non-solicitation of clients and staff for [N] months after employment. Any restraint must be reasonable to be enforceable.] 11. DISCIPLINE AND GRIEVANCE The Employer's disciplinary and grievance procedures apply. 12. GOVERNING LAW This Contract is governed by the laws of Kenya. Signed: For the Employer: __________ Employee: __________ Name / designation / date Name / date

- **Probation (clause 2).** Probation is capped and uses a shorter notice. Probation does not remove statutory protections, so keep the process fair.
- **Remuneration and statutory deductions (clauses 4 and 5).** Pay must meet the applicable minimum wage order. SHIF replaced NHIF in 2024, and NSSF contributions follow the tiered bands under the 2013 Act. Confirm the current SHIF rate, the NSSF bands and whether the housing levy applies, since these figures change.
- **Leave (clause 6).** The statutory floor is at least 21 working days of paid annual leave after twelve months of service. State sick, maternity and paternity leave in line with the Act.
- **Termination (clause 9).** Kenyan law requires both a valid reason and a fair procedure to dismiss. Notice must meet the statutory minimum. A dismissal that skips a fair hearing can be found unfair even where there was a good reason.
- **Restrictive covenants (clause 10).** A non-compete or non-solicit must be reasonable in scope, time and area to be enforced. A blanket ban on working in the industry is likely to fail. ## Common mistakes to avoid - **No written contract for a role lasting three months or more.** This shifts the burden of proof onto the employer and breaches the Act.
- **Using the wrong statutory deductions.** NHIF no longer exists; SHIF replaced it in 2024. Deducting the old figure, or missing NSSF or the housing levy, creates liability. Confirm current rates.
- **Dismissing without a fair procedure.** A valid reason is not enough on its own. Follow a fair process, including a hearing, or risk an unfair termination claim.
- **Paying below the wage order.** Minimum wages are set by order and vary by sector and location. Check the applicable order.
- **An unreasonable non-compete.** Overbroad restraints are hard to enforce. Keep them narrow and tied to a genuine interest. ## A note on jurisdiction and current law Kenyan employment sits on the Employment Act 2007, the Labour Relations Act and the social scheme statutes, with the Employment and Labour Relations Court enforcing fair termination. The numbers move: SHIF replaced NHIF in 2024, NSSF contributions step up through phased bands, and the housing levy and wage orders change. Because coverage and the current figures turn on the role and the sector, confirm the position with a Kenyan advocate and the relevant authorities before you rely on a clause. Adira is built around Indian corporate law first and is architected to expand. Deeper, verified Kenyan employment coverage is on the roadmap rather than live today, so treat this template as a sound starting point and have local counsel check anything sensitive. ## Where a contract workspace helps Hiring is repetitive, and that is where errors slip in. Every contract needs the same spine, the right notice, the correct SHIF, NSSF and housing levy position, the leave figure, and a signed copy you can find. The work that outlasts drafting one contract is keeping that spine consistent across every hire and tracking probation ends and renewals. Keeping the drafting, review and signed versions in one AI workspace tuned to how your company hires means the notice, statutory deductions and leave terms stay consistent across every Kenyan contract, with edits made in plain language. [Adira](https://adiralaw.com) is one workspace built to work this way. This template alone is enough to put a fair Kenyan employment contract in place. *This article is general information, not legal advice. Statutory rates, wage orders and termination rules change, so have a qualified Kenyan advocate review anything important. Last verified October 2026.*