Kenyan employment contract checklist

Under the Employment Act 2007, a job lasting three months or more must have a written contract. Go through this before you sign. Two offers with the same headline figure can be worth quite different amounts.

The pay structure

• What is the basic salary? Not the gross; the basic.
• What are the allowances, itemised? House, transport, airtime.
• Is the figure gross or net? Offers are usually quoted gross.

Why it matters: NSSF is charged on pensionable pay, while PAYE, SHIF and the Housing Levy are charged on gross pay. Work out what you will actually take home with the worked example in PAYE, NSSF, SHIF and the Housing Levy.

The basics

• Job title and duties, specific enough to mean something
• Start date, and the end date if it is a fixed-term contract
• Place of work, and whether you can be transferred
• Reporting line
• For foreigners: who applies for, and pays for, the work permit

Time

• Working hours, and whether overtime is paid. The general wage rules pay overtime at one and a half times the normal rate, and double on rest days and public holidays.
• Annual leave. At least 21 working days a year.
• Sick leave. At least 7 days on full pay and 7 on half pay a year, after two months’ service.
• Maternity leave. 3 months on full pay.
• Paternity leave. 2 weeks on full pay.

Ending it

• Probation. Up to 6 months, extendable once by up to six more with your agreement.
• Notice period, both ways. At least 28 days for someone paid monthly.
• Payment in lieu of notice - is it allowed?
• Redundancy. The legal minimum severance is 15 days’ pay for each completed year of service. Does the contract offer more?

Benefits

• Medical cover. Is private insurance provided on top of SHIF? Does it include your family? What are the inpatient and outpatient limits?
• Pension. Is there an employer pension scheme on top of NSSF, and how much does the employer put in?
• Bonus or commission. Contractual or discretionary? Discretionary means it may never arrive.
• Relocation, housing and school fees, if you are moving for the job.

The clauses to read twice

• Restraint of trade. How long, what scope, where? Overbroad restraints are often unenforceable, but arguing that is expensive.
• Confidentiality and intellectual property. Who owns what you create?
• Training bonds. If the employer pays for training, must you repay it if you leave early?
• Deductions. What can be taken from your pay, and on what authority?

Before you sign

• Read the whole thing
• Ask about anything unclear in writing, and keep the reply
• Check that everything promised verbally is in the document
• Keep a signed copy

After you start

• Check your first payslip against the offer
• Check NSSF and SHIF contributions are arriving in your NSSF and SHA records. Employers occasionally deduct and fail to pay over.
• Get your P9 at the end of the year for your tax return

Working in Kenya PAYE, NSSF, SHIF and the Housing Levy