HR software for Kenyan SMBs
Run compliant HR for your Kenyan business without building everything from scratch. Leave, contracts, records, and people profiles aligned with the Employment Act 2007 and the 2024 statutory reforms.
HR in Kenya: what you need to know
Kenyan employment law is anchored in the Employment Act 2007, with the Labour Relations Act, the Occupational Safety and Health Act, and the Work Injury Benefits Act sitting alongside it. For most SMB owners in Nairobi, Mombasa, or Kisumu, the Act is the document that defines day-to-day obligations: contracts, leave, notice periods, and termination.
Payroll sits on a four-agency structure. PAYE goes to the Kenya Revenue Authority. NSSF moved to a two-tier structure in February 2024, with contribution limits rising each year. SHIF replaced NHIF in October 2024. The Affordable Housing Levy launched in March 2024. All four are remitted monthly by the 9th.
Enforcement is active. The Employment and Labour Relations Court hears employee disputes, the Data Protection Commissioner handles data complaints, and the Ministry of Labour manages inspections. Documentation is what separates a defensible employer from an expensive one.
Employment Act 2007 (Cap 226)
The Employment Act is the primary law governing employment in Kenya. It applies to all national-system employees with narrow exceptions, and sits above the contract, the award, and any company policy. Missing any statutory minimum is grounds for a claim at the Employment and Labour Relations Court.
- Written contract required for any employment over three months (Section 9) with ten mandatory clauses in Section 10
- Probation capped at six months, extendable by another six with written consent (Section 42)
- Monthly-paid employees require 28 days written notice of termination (Section 35)
- Fair hearing required before termination under Section 41 even during probation
- Redundancy requires one month notice plus 15 days pay per year of service as severance (Section 40)
Statutory bodies and regulators
KRA
Kenya Revenue Authority
Collects PAYE personal income tax and the Affordable Housing Levy. Employers register via iTax and remit both monthly by the 9th.
NSSF
National Social Security Fund
Kenya's statutory retirement scheme. Two-tier contribution structure, 6% each from employer and employee up to the upper earnings limit.
SHA
Social Health Authority
Administers SHIF, which replaced NHIF in October 2024. Employee-only contribution of 2.75% of gross salary with a KES 300 minimum.
ELRC
Employment and Labour Relations Court
Hears employee disputes over contracts, unfair termination, and statutory entitlements. Compensation of up to twelve months wages is a common award.
ODPC
Office of the Data Protection Commissioner
Regulates the Data Protection Act 2019. Handles registration, inspections, and complaints related to personal data processing.
Statutory leave entitlements
| Leave type | Entitlement |
|---|---|
| Annual leave | 21 working days after 12 months of continuous service |
| Sick leave | 14 days per year (7 full pay plus 7 half pay) under Section 30 |
| Maternity leave | 3 months (90 days) fully paid |
| Paternity leave | 2 weeks (14 days) fully paid |
| Public holidays | 12 gazetted days per year |
Data protection
Data Protection Act 2019
Kenya's Data Protection Act covers every piece of personal data an employer holds. Data controllers must register with the ODPC above a threshold, limit data collection to what is necessary, keep data secure, and respond to employee access requests within statutory timeframes.
How Cedrios supports Kenya HR
time off
Pre-configured with Kenyan statutory leave types. Employees request leave from their phone, managers approve with one tap, and balances update automatically against the Employment Act 2007 minimums.
Explore featurepeople
One clean record per person with KRA PIN, NSSF number, SHIF registration, and bank details all in the right fields. No more scattered spreadsheets when an inspector asks for three years of records.
Explore featuredocuments
Store contracts, IDs, and certifications with expiry alerts and role-based access. Meets the Data Protection Act 2019 requirements for access controls and audit trail on employee records.
Explore featurecompliance
Kenya-specific compliance defaults built in. Audit logs, retention policies, and role-based access aligned with the Employment Act, the Data Protection Act 2019, and ELRC expectations for documentation.
Explore featureFree tool
Calculate Kenya leave entitlements
Free Kenya leave calculator pre-loaded with Employment Act 2007 entitlements. Enter a start date and see annual, sick, maternity, and paternity leave totals.
Open the calculatorIn-depth guides for Kenya employers
PAYE, NSSF, SHIF, and Housing Levy: The Complete 2026 Guide for Kenyan Employers
A practical guide to Kenya's four main statutory payroll deductions in 2026, covering current rates, employer obligations, and common SMB pitfalls.
ComplianceKenya Employment Act 2007: What Every SMB Owner Should Know
A plain-language guide to the Employment Act 2007 for Kenyan SMB owners, covering contracts, leave, hours, termination, and the obligations you have to get right.
HR ManagementHow to Hire Your First Employee in Kenya: A Step-by-Step Legal Guide for SMBs
A practical walk-through of hiring your first Kenyan employee in 2026, covering offer letters, contracts, statutory registrations, and your first payroll run.
ComplianceTerminating Employment in Kenya: Legal Process and Best Practices
A careful guide to ending employment in Kenya legally in 2026, covering notice periods, fair procedure, redundancy, summary dismissal, and final dues.
HR TipsFree Kenyan Employment Contract Template: Compliant with the Employment Act 2007
What a compliant Kenyan employment contract must include under the Employment Act 2007, with annotated sections and a free template you can generate in minutes.
ComplianceHow to Set Up Leave Policies for Your Business in Kenya (2026 Guide)
A practical guide to setting up compliant leave policies for your Kenyan business — covers annual leave, sick leave, maternity, paternity, and public holidays under the Employment Act 2007.
CompliancePOPIA, NDPR, Kenya DPA — What Every African Employer Must Know in 2026
Five African countries now have active data protection laws with real fines. Here's what they require from HR teams.
Frequently asked questions about HR in Kenya
What is the minimum annual leave entitlement in Kenya?
+
Under the Employment Act 2007, employees are entitled to 21 working days of paid annual leave after 12 months of continuous service. You can offer more; you cannot offer less.
What are the maternity leave entitlements in Kenya?
+
Female employees are entitled to 3 months (90 calendar days) of fully paid maternity leave, in addition to annual leave. Employers cannot deduct maternity leave from annual entitlement.
What statutory deductions apply to Kenyan payroll in 2026?
+
Four main items: PAYE (personal income tax to KRA), NSSF (two-tier retirement scheme, 6% each side, capped at KES 108,000 upper limit from February 2026), SHIF (2.75% of gross, employee only, KES 300 minimum), and the Housing Levy (1.5% each from employer and employee). All are remitted by the 9th of the following month.
What data protection laws apply to HR data in Kenya?
+
The Data Protection Act 2019 governs personal data processing, including employee records. The Office of the Data Protection Commissioner regulates compliance and handles complaints. Employers must limit collection, keep data secure, and respond to employee access requests.
How long must I keep employee records in Kenya?
+
The Employment Act requires records to be kept for the duration of employment. In practice, keeping records for at least five years after termination aligns with the statute of limitations for most employment disputes and is the standard retention period used by well-run Kenyan employers.
Does Cedrios support Kenya-specific payroll calculations?
+
Cedrios currently supports Kenyan leave management, contracts, documents, and people records. Integrated payroll (PAYE, NSSF, SHIF, Housing Levy) is on the roadmap. Our payroll calculator handles the statutory figures in the meantime.
Can I manage a team split across Kenya and other countries with Cedrios?
+
Yes. Cedrios supports multi-country operations with per-country leave rules, contract templates, and compliance defaults. A single Cedrios account can cover a team spread across Kenya, Nigeria, South Africa, and other African markets.
Ready to modernize your Kenyan HR?
Start with the free tier, pre-configured for Kenya. Add your people, switch leave to Cedrios, and keep your records in one place.