Understanding Leave Entitlements Under Kenyan Law
Leave management is one of the most important responsibilities for any employer operating in Kenya. The Employment Act 2007 sets out minimum leave entitlements that every employer must provide, regardless of the size of the business. Failure to comply can result in legal disputes, penalties, and damage to your employer brand.
Many small and medium businesses in Kenya still track leave informally, relying on verbal agreements or basic spreadsheets. This approach creates confusion, disputes, and the risk of non-compliance. Understanding the legal requirements is the first step toward building a leave policy that works for both your business and your employees.
Annual Leave
Under Section 28 of the Employment Act, every employee is entitled to a minimum of 21 working days of paid annual leave after completing 12 consecutive months of service. The leave accrues at a rate of 1.75 days per month. Employers and employees may agree on when the leave is taken, but the employer cannot unreasonably withhold it.
Annual leave that is not taken within a leave year can be carried forward by agreement between the parties. However, it is good practice to encourage employees to use their leave within the year to prevent burnout and avoid accumulating large leave balances that become a financial liability. If the contract is terminated before leave is taken, the employer must pay the employee in lieu of the unused days.
Sick Leave
Section 30 of the Employment Act provides for sick leave after an employee has completed two consecutive months of service. An employee is entitled to a maximum of 30 days of sick leave with full pay and 15 days with half pay in each 12-month period. The employee must produce a medical certificate from a qualified medical practitioner if the absence exceeds two consecutive days.
Employers should have a clear policy on how to report sick leave and what documentation is required. It is advisable to accept sick notes from recognized hospitals and clinics. Tracking sick leave patterns can help identify workplace health issues or cases where the policy may be misused, allowing you to take proactive measures.
Maternity Leave
Section 29 of the Employment Act grants female employees three months (approximately 90 calendar days) of maternity leave with full pay. The employee must give at least seven days' notice or provide a medical certificate indicating the expected date of delivery. Maternity leave may commence at any time within 14 days before the expected date of birth.
An employer cannot terminate an employee for taking maternity leave, and the employee is entitled to return to the same position or a comparable one after the leave period. Additionally, the law prohibits requiring a pregnant employee to perform work that is harmful to her health. Employers should plan for maternity cover to ensure business continuity during the absence.
Paternity Leave
Male employees are entitled to two weeks (14 calendar days) of paternity leave with full pay under the Employment Act. This leave should be taken within the period surrounding the birth of the child. The employee must notify the employer in advance and provide proof of the birth, such as a birth notification from the hospital.
While the law prescribes a minimum of 14 days, some employers offer extended paternity leave as part of their employee benefits package. Progressive paternity leave policies can improve employee morale and demonstrate a commitment to work-life balance, which strengthens your employer value proposition in a competitive market.
Compassionate and Other Leave Types
While the Employment Act does not explicitly mandate compassionate or bereavement leave, most Kenyan employers include it in their HR policies. The standard practice is to offer between 3 and 5 days of paid compassionate leave for the death of an immediate family member. Some organizations also provide leave for other compassionate reasons such as serious illness of a close relative.
Other types of leave that employers commonly offer include study leave, sabbatical leave, and unpaid leave for personal reasons. These are typically governed by the company's internal policies rather than statute. Having clear, documented policies for all leave types reduces ambiguity and ensures consistent treatment across the organization.
Summary of Leave Entitlements
| Leave Type | Duration | Pay | Legal Basis |
|---|---|---|---|
| Annual Leave | 21 working days per year | Full pay | Section 28, Employment Act 2007 |
| Sick Leave | 30 days full + 15 days half | Full then half pay | Section 30, Employment Act 2007 |
| Maternity Leave | 3 months (90 calendar days) | Full pay | Section 29, Employment Act 2007 |
| Paternity Leave | 2 weeks (14 calendar days) | Full pay | Employment Act 2007 |
| Compassionate Leave | 3-5 days (company policy) | Full pay (typically) | Company policy / CBA |
| Study Leave | Varies (company policy) | Varies | Company policy |
Building a Leave Management System That Works
Managing leave across a growing team requires more than a shared spreadsheet. You need visibility into leave balances, approval workflows, and reporting capabilities to ensure compliance. A proper leave management system automates accruals, tracks balances in real time, and provides both managers and employees with a self-service portal.
Vendly includes a complete leave management module designed for Kenyan businesses. It handles all statutory leave types, automates accrual calculations, and integrates directly with payroll so that leave days are accurately reflected in salary processing. Your team can request, approve, and track leave from a single dashboard.
