An employment handbook Kenya employers adopt is the single document that tells staff what the rules are, how decisions are made and what happens if rules are broken. The Employment Act, 2007 does not use the word handbook, but it does require several things that a handbook is the natural place to record, including written particulars of employment, a statement of disciplinary rules and, for larger employers, a sexual harassment policy. This guide explains what the Act requires, what a well-built handbook should contain and how to use it so that it protects the business in a dispute.
Why an employment handbook Kenya businesses can rely on matters
Employment disputes usually turn on whether the employer followed a fair process and whether the employee knew the rules. A handbook that employees have received and acknowledged in writing is strong evidence on the second question. It also forces management to decide policy once, rather than case by case, which makes decisions more consistent and harder to challenge as arbitrary.
A handbook is not a substitute for a contract. It supplements the contract, and any term in it that conflicts with the Act will not help you. Draft it to sit alongside the contract and to match the statute, and review it whenever the law changes.
What the Employment Act requires you to document
Several provisions of the Act can be satisfied or supported through the handbook. We reviewed the Kenya Law text of the Act updated on 26 April 2024, so confirm the current version before you finalise any policy.
- Written contracts. Section 9 requires a written contract of service where the engagement is for a period or number of working days equivalent to three months or more, among other cases.
- Particulars of employment. Section 10 requires a written contract to state specified particulars, which may be given in instalments, but no later than two months after the employment begins.
- Disciplinary rules. Section 12 requires the statement of particulars to specify the disciplinary rules applicable to the employee, or to refer the employee to a document that is reasonably accessible to them and contains the rules. It must also say to whom the employee may apply if dissatisfied with a disciplinary decision, or to raise a grievance. A handbook is the obvious accessible document.
- Sexual harassment policy. Under section 6(2), an employer with twenty or more employees must, after consulting employees or their representatives, issue a policy statement on sexual harassment. Section 6(3) lists what the statement must contain, including the definition in section 6(1), a statement that every employee is entitled to work free of sexual harassment, how complaints can be brought, and that the employer will not disclose the complainant’s name or the circumstances except as necessary for disciplinary action.
Core sections of an employment handbook Kenya employers should include
Terms and conditions. Cover probation, working hours, overtime, pay dates and methods, deductions and benefits. Make sure each item is consistent with the contract and the Act.
Code of conduct. Set out standards on use of company property, confidentiality, conflicts of interest, gifts and hospitality, social media and dealings with clients and suppliers. Be specific, because vague rules are difficult to enforce.
Disciplinary procedure. Define misconduct categories and the sanctions that may follow, the investigation steps and who decides. This section must fit section 41 of the Act, discussed below.
Grievance procedure. Explain how an employee raises a complaint, who deals with it first, the time for a response and how to escalate. A working internal route reduces the number of disputes that go to the Employment and Labour Relations Court.
Leave. State the statutory minimums and any more generous company terms. See the next section.
Data and technology. Describe acceptable use of systems and how staff data is handled. Align it with your obligations as a data controller, which we cover in our regulatory compliance work.
Health, safety and wellbeing. Record your safety arrangements, incident reporting and any wellbeing support. Check the current occupational safety and health legislation that applies to your workplace, since duties differ by industry.
Leave entitlements under the Act
These minimums are verified against the Act and should not be undercut.
- Annual leave. Section 28 gives an employee, after every twelve consecutive months of service, not less than twenty-one working days of leave with full pay.
- Sick leave. Section 30 gives an employee, after two consecutive months of service, not less than seven days with full pay and then seven days with half pay in each twelve-month period, subject to a medical certificate.
- Maternity leave. Section 29 gives a female employee three months of maternity leave with full pay, and the right to return to the same or a reasonably suitable job on terms not less favourable.
- Paternity leave. Section 29 gives a male employee two weeks of paternity leave with full pay.
Aligning the disciplinary section with section 41
Section 41 is the provision most often tested in court. Before terminating an employee for misconduct, poor performance or physical incapacity, the employer must explain, in a language the employee understands, the reason for which it is considering termination. The employee is entitled to have another employee or a shop floor union representative of their choice present. The employer must also hear and consider any representations the employee makes.
Your handbook should describe these steps in plain terms and your managers should follow them every time. A procedure that exists on paper but is not followed is no defence. Document each stage: the notice of the allegation, the meeting, the representations and the decision.
Rolling out your employment handbook Kenya staff will follow
Having a handbook is not enough, you must be able to show employees received it. Give each new hire a copy, obtain a signed acknowledgement, and keep it on file. When you update the handbook, repeat the process and consult where the Act requires it, as it does for the sexual harassment policy. Review the handbook at least once a year and after any legislative change, and keep old versions so you can show which rules applied at the time of a dispute.
Where your business is unionised or has a collective bargaining agreement, check that the handbook does not cut across it. Where it operates in more than one country, adapt the handbook for each jurisdiction rather than copying the Kenyan text.
How We Can Help
Clay & Associates Advocates drafts and reviews every employment handbook Kenya clients use, along with contracts and policies for Kenyan employers. We can audit your existing documents against the Employment Act, prepare disciplinary and grievance procedures, and advise on dismissals and employee disputes. See our litigation and dispute resolution practice, our corporate and commercial practice, our fees, or contact us to discuss your business.
Sources: Employment Act, 2007 (Kenya Law)
Frequently asked questions
Is an employment handbook compulsory in Kenya?
The Employment Act does not require a document called a handbook. It does require written particulars, a statement of disciplinary rules and, for employers with twenty or more employees, a sexual harassment policy, which a handbook can contain.
How much annual leave must an employee get?
Not less than twenty-one working days with full pay after every twelve consecutive months of service, under section 28.
What must happen before dismissing an employee for misconduct?
Under section 41 the employer must explain the reason in a language the employee understands, allow a colleague or union representative to be present and consider the employee’s representations.
Does the handbook form part of the contract?
That depends on how the contract and handbook are drafted. State clearly in both documents how they relate, and have employees sign an acknowledgement.
