Make a role redundant in Kenya, the right way.

Answer a few questions and the toolkit builds your evidence pack — a genuine redundancy, notice to the union and the labour officer, fair selection and the correct severance. Kenya requires that notification for every redundancy.

Kenya — the Employment Act 2007 (s.40): notify the union and the labour officer, select fairly and pay 15 days’ pay per year of service plus notice. Disputes go to the Employment and Labour Relations Court.

Your figures & obligations

The exact numbers and rules that apply — worked out for your situation and jurisdiction.

Every document, written for you

The letters, records and decision — drafted for your situation, ready to send. Not a checklist.

Track it to completion

Save your plan, tick off each step with dates and evidence — proof you ran a proper process.

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Redundancy, done right — for Kenyan employers

In Kenya a redundancy is the loss of a role that has become superfluous to the business (Employment Act 2007, s.40). It carries a payment and a mandatory notification: severance of 15 days’ pay per year, one month’s notice, and notice to both the union and the labour officer — for every redundancy, whatever the numbers. This free AI toolkit walks you through a compliant redundancy and builds the evidence pack.

The redundancy process, step by step

Genuine redundancy — record that the role is genuinely superfluous to the business (s.2); a redundancy is about the post, not the person.
Notify the union and the labour officer — under s.40(1)(a)-(b), notify the union and the area labour officer at least one month ahead (a union member), or notify the employee personally and the labour officer (non-union). This applies to every redundancy, whatever the numbers.
Fair selection — select with due regard to seniority, and to the skill, ability and reliability of each employee (s.40(1)(c)).
Notice & severance — give one month’s notice (or one month’s pay in lieu) and pay severance of 15 days’ pay for each completed year of service.
Final pay — settle the severance, notice pay and any accrued leave (s.40(1)(e)-(g)).

Severance pay

Statutory severance is 15 days’ pay for each completed year of service (Employment Act 2007, s.40(1)(g)). On top of the severance an employee is owed one month’s notice or one month’s pay in lieu and any accrued leave cashed out. A contract or collective agreement can provide more.

Where the redundancy is caused by the employer’s insolvency, s.40(2) does not apply and Part VIII governs instead. Redundancy severance is taxable and is subject to PAYE.

Notice periods

Monthly-paid employee

1 month (28 days) written notice, or pay in lieu

Employment Act 2007, s.35(1)(c) — a longer contractual notice period prevails. Notice may be paid in lieu.

Notifying the union & the labour officer

Kenya sets no headcount threshold — every redundancy, even of a single role, must be notified. Where the employee is a union member, notify the union and the area labour officer at least one month before the termination; where the employee is not unionised, notify the employee personally and the labour officer. A redundancy that skips this notification, or that lacks a genuine operational reason and fair selection, can be challenged as an unfair termination before the Employment and Labour Relations Court.

Common questions

How much severance pay is due?

15 days’ pay for each completed year of service (s.40(1)(g)), in addition to one month’s notice or pay in lieu and any accrued leave. A contract or collective agreement can provide more.

Who do I have to notify?

The union and the area labour officer, at least one month before the termination, where the employee is a union member; the employee personally and the labour officer where the employee is not unionised. This applies to every redundancy, regardless of how many roles are affected.

How do I select who is made redundant?

With due regard to seniority, and to the skill, ability and reliability of each employee (s.40(1)(c)). The employer carries the burden of showing a genuine operational reason and a fair procedure.

Is severance taxed?

Yes. Redundancy severance is taxable in Kenya and is subject to PAYE.

Reference: Employment Act 2007, ss.35, 40 & 43; labour.go.ke. General information for employers, not legal advice.