Every working relationship in Kenya — whether you are hiring your first employee or starting a new job — should be governed by a written employment contract. Yet thousands of Kenyans work under verbal agreements or poorly drafted letters that leave both parties exposed when disputes arise.
The Employment Act, Cap. 226 of 2007 sets out clear minimum requirements for employment contracts in Kenya. Ignore them and you risk fines, tribunal orders, or court judgments against you. Get them right and you protect both the employer and the employee from day one.
This guide covers the five things every Kenyan employment contract must legally include — whether you are hiring in Nairobi, Mombasa, Kisumu, or anywhere else across the country.
The Employment Act 2007 (revised 2012) is the primary legislation governing employment relationships in Kenya. It is supplemented by the Labour Relations Act 2007, the Work Injury Benefits Act 2007, and various subsidiary regulations.
Who Needs a Written Employment Contract in Kenya?
Under Section 9 of the Employment Act 2007, any employment contract that lasts more than three months must be in writing. This applies to every category of worker: permanent staff, contract employees, casual workers engaged for more than one month, and part-time employees.
Even for short engagements under three months, a written contract is strongly advisable. It eliminates the ambiguity that leads to disputes over pay, duties, and termination terms.
The 5 Must-Have Clauses
Names, Addresses & Date of Commencement
The contract must clearly identify both parties — the employer's full legal name (including business registration number if applicable) and the employee's full name and ID number. The date employment begins must also be stated. Under Section 10(1)(a) of the Employment Act, this is a mandatory disclosure. Without it, the employment relationship has no legally defined starting point for calculating notice periods, leave, or gratuity.
Job Title, Description & Place of Work
The contract must specify the employee's position or job title and the nature of their duties. Where the employee will be based — or whether they may be required to work at multiple locations — must also be stated. This protects employers from claims of unfair reassignment and protects employees from being asked to perform work outside their agreed role without proper process.
Remuneration: Salary, Allowances & Payment Schedule
This is the most frequently disputed clause in Kenyan employment contracts. The contract must state the gross salary, how and when it will be paid (weekly, monthly), and any allowances payable (house allowance, transport, medical). Kenya's minimum wages are gazetted annually by the Ministry of Labour — your contract must not pay below the applicable minimum for the industry and job grade. Leaving salary vague or "to be agreed" is a legal risk for both parties.
Working Hours, Leave & Public Holidays
The Employment Act caps normal working hours at 52 hours per week (or 60 hours for certain industries). The contract must state the employee's working hours and their entitlement to annual leave (minimum 21 days per year after 12 months of continuous employment), sick leave (7 days fully paid, 7 days half-paid per year), and maternity leave (3 months for female employees). Public holidays as gazetted must also be observed.
Notice Period & Termination Conditions
Both parties must know how the employment relationship can be lawfully ended. The Employment Act sets minimum notice periods: 28 days for monthly-paid employees, 7 days for weekly-paid employees. The contract should state the grounds for summary dismissal (gross misconduct), the disciplinary process, and whether a payment in lieu of notice is permissible. An employment contract without a clear termination clause exposes employers to wrongful dismissal claims at the Employment and Labour Relations Court.
Beyond the five mandatory items, a well-drafted Kenyan employment contract should also include a confidentiality clause, a probation period clause (maximum 6 months under the Act), NSSF and NHIF contribution acknowledgment, and a dispute resolution clause specifying the Employment and Labour Relations Court.
What Happens If Your Employment Contract Is Missing These Clauses?
An employment contract that fails to meet the minimum requirements of the Employment Act 2007 does not automatically become void — but it creates serious legal exposure. The Employment and Labour Relations Court (ELRC) has consistently ruled in favour of employees when employers rely on incomplete or ambiguous contracts.
Common consequences include:
- Orders to pay compensation equivalent to 12 months' gross salary for unfair termination claims
- Liability for unpaid leave, overtime, and allowances going back years
- Fines of up to KES 100,000 for employers who fail to provide written contracts under Section 9
- Inability to enforce non-compete or confidentiality clauses that were never formally agreed in writing
Verbal Contracts: Are They Legal in Kenya?
Verbal employment contracts are legally recognised in Kenya for engagements under three months. However, proving the terms of a verbal agreement in a court or tribunal is extremely difficult. When a dispute arises — and it often does — it becomes one person's word against another's.
For any working relationship that extends beyond a month, the practical advice from Kenyan employment lawyers is straightforward: always get it in writing.
Employment Contract vs. Offer Letter — What's the Difference?
Many Kenyan employers issue an offer letter at the point of hiring, then follow it with a formal employment contract once the employee joins. This is an acceptable and common practice. However, if the employee starts work and a formal contract is never signed, the offer letter — or even the email exchange — can be treated as the employment contract by the ELRC.
To avoid this, issue your formal employment contract on or before the employee's first day. Ensure it is signed by both parties and that each party retains a copy.
Get a Lawyer-Reviewed Employment Contract Template
Sheria.ke's Employment Contract template is drafted by Ochieng Omollo & Co. Advocates and includes all 5 mandatory clauses, a probation clause, confidentiality provisions, and is updated for Kenya's 2026 minimum wage gazette.
Download the Template →Frequently Asked Questions
Can an employer change the terms of an employment contract in Kenya?
No — not unilaterally. Any variation to an employment contract requires the agreement of both parties. An employer who changes salary, duties, or hours without the employee's written consent may face a claim for constructive dismissal at the Employment and Labour Relations Court.
Does a Kenyan employment contract need to be witnessed or notarised?
No. An employment contract in Kenya does not need to be witnessed, notarised, or filed with any government authority to be valid. It simply needs to be signed by both the employer and the employee.
What is the minimum wage in Kenya in 2026?
Kenya's minimum wages are set by the Minister of Labour through an annual gazette notice and vary by job category and location. General labourers in Nairobi receive a higher minimum than equivalent workers in rural areas. Always check the current gazette order before finalising a salary clause.
Can a Kenyan employment contract be in Swahili?
Yes. There is no legal requirement for employment contracts to be in English. A contract in Kiswahili is legally valid. What matters is that both parties understand and sign the document — if there is any risk of misunderstanding, it is good practice to provide a bilingual version.