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The letter says "redundancy". Don't pack a single box yet.
Kenya Employment Act section 40 sets the rules an employer must follow before declaring anyone redundant. In short: notice to your union and the labour officer at least a month ahead (or, if you're not in a union, written notice to you and the labour officer), fair selection, cash for unused leave, a month's notice or pay in lieu, and severance pay of at least 15 days' pay for every completed year of service. That's the floor, not a favour.
Redundancy in Kenya Means "No Fault"
Section 2 of the Employment Act, 2007, under Kenyan law, defines redundancy as the loss of a job "by involuntary means through no fault of an employee", where the employer initiates the termination because the employee's services have become superfluous.
"No fault" means redundancy is not a dismissal for poor performance or misconduct. It is not a verdict on your work. "Superfluous" means the role itself is no longer needed, perhaps after a restructuring or closure. Whether it's a multinational in Nairobi or a small firm in Nakuru, section 40 applies.
Kenya Employment Act Section 40: Six Conditions, No Shortcuts
Under section 40(1), an employer may not terminate a contract on the grounds of redundancy unless it meets all of these conditions. All of them:
- Notice to the right people. If you're a union member, the employer must notify your union and the local labour officer of the reasons for and extent of the redundancy, at least a month before the intended termination date. If you're not in a union, the employer must notify you personally in writing, and the labour officer.
- Fair selection. The employer must have due regard to seniority in time and to each affected employee's skill, ability and reliability.
- No penalty for being in or out of a union. Where a collective agreement sets out redundancy benefits, the employer can't disadvantage you for being, or not being, a union member.
- Unused leave paid in cash. Any leave due to you must be paid out.
- Notice or pay in lieu. At least one month's notice, or one month's wages instead.
- Severance pay. At least 15 days' pay for each completed year of service.
These are minimums. Your contract or a collective bargaining agreement (CBA) may give you more. Read yours. Terminations caused by an employer's insolvency fall under a separate part of the Act.
Redundancy Pay in Kenya: Do the Maths Yourself
Here's an imaginary example. Achieng is an accounts assistant in Kisumu. She has worked for six years and four months, and she has eight days of unused leave. These details are invented for illustration only.
- Severance: 15 days' pay × 6 completed years = 90 days' pay. The extra four months don't count: the Act says "completed" years.
- Notice pay in lieu: one month's wages.
- Unused leave: 8 days' pay.
The Act doesn't spell out how to turn a monthly salary into "a day's pay", so ask your employer to show the daily rate they used, in writing, and check every line against your payslip. Make sure salary for days you've already worked is included too.
Tax may apply. Kenya Revenue Authority guidance on lump-sum payments lists severance pay among the payments your employer must deduct tax from before paying out, and says payment in lieu of notice is taxable.
After a Redundancy Notice: Build Your File
Feelings can wait. Evidence can't.
- Get the letter. Ask for the redundancy notice in writing, with the date, the reason, and the termination date.
- Ask how you were selected. Request the criteria used.
- Check the maths. Compare the employer's figures against the example above, using your own payslip.
- Check your NSSF record. NSSF issues a free statement of account on demand. Get one to confirm every month's contribution was actually remitted.
- Ask for your certificate of service. Under section 51, your employer must give you one if you worked for four consecutive weeks or more. It states your dates of employment and the nature of your work. Failing to issue it is an offence.
Keep copies of your contract, payslips and emails. Phone photos count.
Section 40 Wasn't Followed? You Have Options, and a Deadline
Start with a calm, written query to HR. Many calculation mistakes get fixed here.
If that doesn't work, you have two formal routes. Under section 86 of the Act, you can complain to a labour officer at your county labour office, or file a claim at the Employment and Labour Relations Court. Your union, a lawyer or a legal aid clinic can help you choose.
Watch the clock. If you believe you were unfairly terminated, section 47(1) gives you three months from the date of dismissal to complain to a labour officer. Section 89 requires court claims under the Act to be brought within three years of the act complained of, or within twelve months after a continuing injury ends. Don't let a deadline decide your case.
This article explains the law in general terms. For advice on your own case, speak to a labour officer or a qualified employment lawyer.
After Redundancy in Kenya: Aim Higher
Redundancy says something about a role, not about you.
Treat your notice period as a head start. Update your CV while your achievements are fresh, and ask for a reference while goodwill is high. "My role was made redundant in a restructuring" is a complete, honest answer. Our guide on how to explain gaps in your employment history shows you how. When you're ready, our return to work guide covers rebuilding confidence and momentum.
People who've just lost a job are a favourite target for scammers. Legitimate employers never charge a fee to apply or be hired. Learn to spot fake job offers before you pay.
Know your rights. Check your numbers. Then aim for a step up, not just a replacement. Your skills left the building with you. Where are you taking them?
