Human Resources Policy (Kenya)

A Human Resources Policy in Kenya sets out the rules and standards the organisation expects those it covers to follow.

A Kenya Human Resources Policy serves multiple legal functions. First, it provides the written particulars of employment that Section 10 of the Employment Act No. 11 of 2007 requires an employer to give every employee within two months of commencing employment — including the employer's name, the job title, the date employment commenced, the remuneration, and the terms relating to hours, leave, and termination. Second, it establishes the disciplinary and grievance procedures that the Employment and Labour Relations Court (ELRC), established under the Employment and Labour Relations Court Act No. 20 of 2011, expects employers to follow before terminating an employee. Failure to follow fair disciplinary procedures can render a termination unfair under Section 45 of the Employment Act No. 11 of 2007 regardless of whether valid grounds for termination existed.

The Labour Institutions Act No. 12 of 2007 establishes the National Labour Board, the Salaries and Remuneration Commission for public officers, the Industrial Court (now the ELRC), and the Conciliation, Mediation and Arbitration mechanisms for resolving employment disputes. The HR Policy must align with any applicable Wages Order issued under the Regulation of Wages and Conditions of Employment Act Cap. 229 by the Labour Commissioner for the relevant sector — for example, the General Wages Order, the Agricultural Sector Wages Order, or the Catering and Hotel Industries Wages Order.

The Occupational Safety and Health Act No. 15 of 2007, administered by the Directorate of Occupational Safety and Health Services (DOSHS) within the Ministry of Labour, requires every employer with more than five employees to establish a Safety and Health Committee and to maintain a written occupational health and safety policy under Section 13 of the Act. This OSHA policy component must be part of or appended to the employer's HR Policy. Employers must also register with DOSHS and display their OSHA registration certificate at the workplace.

The Work Injury Benefits Act No. 13 of 2007, administered by the Director of Occupational Health and Safety, requires employers to insure all employees against work-related injuries and diseases with a registered insurer and to report workplace accidents to DOSHS within 24 hours under Section 22. The HR Policy must reference the employer's work injury insurance arrangement and the procedure for reporting workplace injuries.

Kenyan HR Policies also address the National Cohesion and Integration Act No. 12 of 2008, which prohibits employment discrimination on the grounds of ethnicity, and the Employment Act No. 11 of 2007 which prohibits discrimination under Section 5 on the grounds of race, sex, pregnancy, marital status, health status, ethnic or social origin, colour, age, disability, religion, conscience, belief, culture, dress, language, or birth. The HR Policy's equal opportunity and anti-discrimination provisions must reflect these statutory prohibitions.

The National Industrial Training Authority (NITA), established under the National Industrial Training Act Cap. 237, levies an Industrial Training Levy of KES 50 per employee per month on employers with five or more employees. An employer can claim reimbursement against approved training expenditure only if the training is documented in the employer's HR and training policy, the training provider is NITA-accredited, and training records are maintained as required by NITA regulations. An HR Policy that includes a training and development section is therefore directly relevant to the employer's ability to reclaim the NITA levy. The National Employment Authority (NEA), established under the Kenya National Employment Authority Act No. 3 of 2016, maintains the National Employment Register and requires employers to notify it of all vacant positions and all foreign nationals employed on Class G work permits. The NEA approves the employment of foreign nationals in occupations restricted to Kenya citizens unless exceptional circumstances are demonstrated. Kenya's HR Policy framework has been significantly influenced by Employment and Labour Relations Court (ELRC) judgments since the Court's establishment under the Employment and Labour Relations Court Act No. 20 of 2011. Leading ELRC decisions on discrimination under Section 5, redundancy procedure under Section 40, and unfair dismissal under Section 45 of the Employment Act No. 11 of 2007 have shaped what employers must include in their disciplinary and grievance procedures. A well-drafted Kenya HR Policy that reflects current ELRC jurisprudence is an employer's most effective defence against employment claims filed before the Court. The Social Health Insurance Act 2023, which established the Social Health Authority (SHA) to replace the National Hospital Insurance Fund (NHIF), requires all employers to deduct SHA contributions at 2.75% of gross pay from each employee and remit monthly. The HR Policy must reference this obligation alongside the other statutory deductions.

A Human Resources Policy in Kenya is required whenever an employer has more than one employee, and is particularly critical in the following circumstances.

A Kenya HR Policy is needed when a business registers with the Business Registration Service (BRS) and takes on its first permanent employees. Section 10 of the Employment Act No. 11 of 2007 requires that written terms of employment be provided to employees within two months of engagement, and the HR Policy provides the overarching framework from which individual contracts and appointment letters draw their terms.

An HR Policy is required when an employer faces a claim before the Employment and Labour Relations Court (ELRC) sitting in Nairobi, Mombasa, Kisumu, Nakuru, or any other designated circuit. The ELRC requires employers to demonstrate that they followed their documented disciplinary and grievance procedures before terminating an employee. An employer without a documented HR Policy is at a severe disadvantage in ELRC proceedings for unfair termination under Section 45 of the Employment Act No. 11 of 2007.

A Kenya HR Policy is needed when a company is registered by the National Industrial Training Authority (NITA) under the National Industrial Training Act Cap. 237 and is required to submit its training policy as part of the levy exemption or reimbursement application. NITA's Industrial Training Levy, payable monthly, is rebated against qualifying training expenses documented in accordance with the employer's HR and training policy.

An HR Policy is required when an employer applies for a work permit or dependent pass for a foreign national under the Kenya Citizenship and Immigration Act No. 12 of 2011. The Department of Immigration Services requires evidence that the employer is a properly constituted organisation with documented employment practices before issuing a Class G permit to a foreign employee.

A Human Resources Policy is needed when an employer is subjected to a labour inspection by a Labour Officer appointed under the Labour Institutions Act No. 12 of 2007. Labour Officers have power under Section 44 of the Labour Institutions Act to inspect employer records, interview employees, and issue compliance notices. A documented HR Policy demonstrates that the employer is aware of its statutory obligations and is managing compliance proactively.

An HR Policy is required when an employer registers with the Kenya Revenue Authority (KRA) for PAYE purposes and takes on its first employees. The KRA employer registration process requires confirmation that the employer has documented employment terms as required by Section 10 of the Employment Act No. 11 of 2007. An HR Policy provides the master document from which individual appointment letters and employment contracts draw their terms, confirming consistency across the workforce. The Policy is needed when an employer applies for ISO 9001 Quality Management System certification through the Kenya Bureau of Standards (KEBS) or an accredited certification body, since ISO 9001 requires documented human resources procedures including competence, training, and awareness processes as part of the quality management system. An HR Policy is required when a company seeks listing on the Nairobi Securities Exchange (NSE) under the Capital Markets Authority (CMA) Regulations — the NSE Listing Rules require listed companies to maintain documented governance and HR policies as part of their corporate governance framework. The CMA and NSE conduct periodic governance assessments of listed companies, and inadequate HR documentation is treated as a corporate governance deficiency that may affect the company's compliance rating and share price.

A Kenya Human Resources Policy under the Employment Act No. 11 of 2007 must contain the following essential elements.

Scope and Application: Statement of which employees and locations the policy covers, the effective date, and the authority under which it is adopted. Reference to the Employment Act No. 11 of 2007, the Labour Institutions Act No. 12 of 2007, the Work Injury Benefits Act No. 13 of 2007, and the Occupational Safety and Health Act No. 15 of 2007 must appear in the scope section.

Recruitment and Selection: Procedures for advertising vacancies, shortlisting, interviewing, and offering employment; equal opportunity commitments under Section 5 of the Employment Act No. 11 of 2007; requirements for pre-employment medical examinations; probation period provisions (maximum 6 months under Section 42(1) of the Employment Act); and background verification procedures compliant with the Data Protection Act No. 24 of 2019 administered by the Office of the Data Protection Commissioner (ODPC).

Terms and Conditions of Employment: Minimum wages referencing the relevant Wages Order under Cap. 229; hours of work (maximum 52 hours per week under Section 27 of the Employment Act); overtime entitlement and rates; housing, transport, and medical allowances where applicable; and the payroll deduction schedule — PAYE under Income Tax Act Cap. 470, NSSF under the NSSF Act No. 45 of 2013, Housing Levy under the Affordable Housing Act 2024, and SHA contributions under the Social Health Insurance Act 2023.

Leave Entitlements: Annual leave (minimum 21 working days per year under Section 28 of the Employment Act No. 11 of 2007); sick leave (7 days full pay and 7 days half pay per year under Section 30); maternity leave (3 months full pay under Section 29); paternity leave (2 weeks under Section 29A); compassionate leave; and public holiday entitlements under the Public Holidays Act Cap. 110.

Discipline and Grievance: The disciplinary process — counselling, written warning, final warning, and termination — with the right of the employee to be heard before any disciplinary action under Section 41 of the Employment Act No. 11 of 2007; the grievance procedure allowing an employee to raise complaints with the immediate supervisor, HR, and ultimately to refer unresolved disputes to the ELRC or a labour officer; and the timelines for each step.

Termination and Redundancy: Notice periods — one month for employees paid monthly, one week for casual employees — under Section 35 of the Employment Act No. 11 of 2007; payment in lieu of notice; severance pay of 15 days' wages per year of service on redundancy under Section 40; and the procedure for declaring redundancy including consultation with the employees or their union and notification to the Labour Commissioner.

Data Protection and Confidentiality: Employee data handling obligations under the Data Protection Act No. 24 of 2019; the ODPC registration requirement where personal data is processed; and confidentiality obligations on employees during and after employment. The forms-legal.com Kenya HR Policy template covers all mandatory elements under the Employment Act No. 11 of 2007 and includes model disciplinary and grievance flowcharts approved for use before the Employment and Labour Relations Court.

Payroll Statutory Compliance Matrix: The HR Policy must include or reference a payroll compliance section setting out all statutory deduction rates applicable to Kenya employees: PAYE under Schedule 1 of the Income Tax Act Cap. 470 at graduated rates from 10% to 35%; NSSF contributions under the NSSF Act No. 45 of 2013; Social Health Authority contributions at 2.75% of gross pay under the Social Health Insurance Act 2023; and the Affordable Housing Levy at 1.5% employee plus 1.5% employer under the Affordable Housing Act 2024. Anti-Discrimination and Equal Opportunity Statement: The HR Policy must contain an explicit equal opportunity and non-discrimination commitment referencing Section 5 of the Employment Act No. 11 of 2007 and the National Cohesion and Integration Act No. 12 of 2008. The policy should state the employer's commitment to merit-based hiring, promotion, and remuneration, and the procedure for reporting discrimination to the National Cohesion and Integration Commission (NCIC). Sexual Harassment Policy: Section 6 of the Employment Act No. 11 of 2007 prohibits sexual harassment in the workplace and requires employers to take steps to prevent it. The HR Policy must define sexual harassment, identify the reporting channels including a confidential HR hotline and a designated Sexual Harassment Complaints Officer, and set out the investigation and disciplinary process. Employees who make bona fide sexual harassment complaints must be protected from retaliation under the non-victimisation provisions of the Employment Act. The forms-legal.com Kenya HR Policy template covers all mandatory elements under the Employment Act No. 11 of 2007, the Labour Institutions Act No. 12 of 2007, the Occupational Safety and Health Act No. 15 of 2007, and the Data Protection Act No. 24 of 2019, with model ELRC-compliant disciplinary and grievance flowcharts. Whistleblower and Witness Protection: The HR Policy should reference the Bribery Act No. 47 of 2016 and the Public Officer Ethics Act No. 4 of 2003, which together protect employees who report corruption or ethical violations in the workplace from retaliation. The employer should designate a confidential whistleblower reporting channel — an email address, hotline, or third-party ethics hotline — and commit to investigating all reports within 30 days. Employees who report in good faith must not be dismissed, demoted, or otherwise victimised as a consequence of their disclosure.