Transfer Letter (Kenya)

A Transfer Letter in Kenya conveys a defined interest from the assignor to the assignee and fixes the effect of that transfer.

Section 10 of the Employment Act No. 11 of 2007 requires that every employer provide each employee with a written statement of the particulars of employment, including the place of work, before or on the date of commencement of employment. Where an employer wishes to change the employee's place of work — one of the particulars required under Section 10 — the change must be communicated in writing. A Transfer Letter satisfies this obligation by formally varying the contractual term relating to place of work.

The Labour Relations Act No. 14 of 2007, administered jointly by the Ministry of Labour and the Employment and Labour Relations Court (ELRC), protects employees against transfers used as a form of victimisation or constructive dismissal. Section 45 of the Employment Act No. 11 of 2007 prohibits unfair dismissal, and where a transfer amounts to a fundamental and unilateral alteration of an employee's terms and conditions of employment — for example, transferring an employee to a substantially lower-paying position or to a location that makes continued employment impractical — the Employment and Labour Relations Court may treat such a transfer as constructive dismissal entitling the employee to remedies under Section 49 of the Employment Act.

The National Employment Authority (NEA), established under the National Employment Authority Act No. 3 of 2016, maintains records of employment but does not directly regulate individual transfers. Where a transfer involves a change of employer — for example, a transfer between two separate legal entities within a corporate group — the requirements of Section 9 of the Employment Act No. 11 of 2007 regarding continuity of service and transfer of employment obligations apply. The employee's continuous service period, accrued annual leave under Section 28 of the Employment Act, and accrued gratuity under Section 35 must not be diminished by the transfer.

Where employees are covered by a Collective Bargaining Agreement (CBA) registered with the Employment and Labour Relations Court under Section 59 of the Labour Relations Act No. 14 of 2007, transfer procedures and conditions are typically regulated by the CBA. Employers must comply with the CBA provisions before issuing a Transfer Letter to a unionised employee, including any required consultation with the recognised trade union.

The National Hospital Insurance Fund (NHIF) Act Cap. 255 and the National Social Security Fund (NSSF) Act No. 45 of 2013 require that employee deductions continue without interruption during a transfer. Where the transfer involves a change of payroll entity, the employer must update NHIF and NSSF registration records to confirm the employee's contributions are correctly credited. A Transfer Letter that triggers a change in pay structure — for example, through a transfer allowance or cost-of-living adjustment — must specify the new gross salary and the basis for any additional allowances.

A Transfer Letter Kenya is required whenever an employer decides to redeploy an employee within the organisation, whether for operational, disciplinary, promotional, or restructuring reasons.

A Transfer Letter is needed when a Kenyan bank or financial institution relocates a branch employee to a different branch city. Financial sector employers regulated by the Central Bank of Kenya are required to maintain adequate staffing at each licensed branch, and transfers are a routine operational tool. The Transfer Letter documents the employer's decision, communicates the effective date, and confirms whether the employer will meet relocation expenses.

A Transfer Letter is required when a Kenyan company undergoes a merger or acquisition under the Competition Act No. 12 of 2010 and employees are reassigned to new operational units. In such transactions, the target company's employees may be transferred to the acquiring company's payroll, and a Transfer Letter — together with a new or amended employment contract — documents the transition and preserves continuous employment rights under Section 9 of the Employment Act No. 11 of 2007.

A Transfer Letter is needed when a government ministry or state corporation transfers a civil servant or parastatal employee to a different posting under the Public Service Commission Rules. The Kenya Public Service Commission (PSC), established under Article 233 of the Constitution of Kenya 2010, has power to transfer public officers, and Transfer Letters in the public service follow a specific format prescribed by the PSC.

A Transfer Letter is required when an employer transfers an employee as part of a performance management process — moving the employee to a position or location where their skills are better matched, or separating an employee from a team following a workplace investigation under the Employment Act No. 11 of 2007.

A Transfer Letter is needed when a multinational company operating in Kenya deploys a local employee to an international assignment or brings an expatriate employee into a Kenyan role. Such cross-border transfers must comply with the Kenya Immigration Act No. 34 of 2011, particularly regarding work permits under Section 37, and the Transfer Letter is part of the documentation submitted to the Department of Immigration Services.

A Kenya Transfer Letter under the Employment Act No. 11 of 2007 must contain the following essential elements to be legally effective and to protect both employer and employee.

Employer and Employee Identification: The full name of the employer organisation, BRS registration number (for companies), and address; the full name of the employee, their employee number or staff identification, their current job title, and their National Identity Card (NIC) number or KRA PIN for payroll purposes.

Date of the Letter and Effective Transfer Date: The date the Transfer Letter is issued and the specific effective date on which the transfer takes effect. The effective date must give the employee reasonable notice — typically not less than the notice period in the employment contract or collective agreement — to make any necessary personal arrangements, particularly where the transfer involves relocation to a different city or county.

New Position and Department: The title of the new role, the department or business unit to which the employee is being transferred, the name and title of the new reporting manager, and the new place of work including the physical address. Where the new role carries a different job grade, the grade designation should be stated.

Salary and Benefits Variation: Whether the transfer results in any change to the employee's basic salary, allowances, or benefits package. The Employment Act No. 11 of 2007 requires written notice of any change to remuneration. A transfer must not reduce the employee's salary without the employee's written consent, as such a unilateral reduction may constitute constructive dismissal under Section 45 of the Employment Act. Any transfer allowance, housing allowance, or cost-of-living differential applicable to the new location must be specified.

Relocation Assistance: Whether the employer will provide relocation expenses, and if so, the scope — packing and transport of household goods, temporary accommodation, school fees assistance for dependants, or a lump-sum relocation grant. The relocation policy reference or the specific amounts and conditions should be stated in or attached to the Transfer Letter.

Continuity of Service: A statement confirming that the employee's continuous service period for purposes of annual leave entitlement under Section 28 of the Employment Act No. 11 of 2007, service pay under Section 35, and any other accrued benefits will be preserved and unaffected by the transfer.

Reporting Instructions: The date, time, and person to whom the employee should report at the new station; and details of handover responsibilities at the current station.

Employee Acknowledgement: A signature block for the employee to acknowledge receipt of the Transfer Letter, confirming the terms of the transfer. Where an employee objects to the transfer, they should do so in writing within a specified period, failing which the transfer terms are deemed accepted. The forms-legal.com Kenya Transfer Letter template includes all sections required under the Employment Act No. 11 of 2007 and best practice for Kenyan employers.

Additional compliance elements for a Transfer Letter (Kenya) used in Kenya include: Under the Employment Act No. 11 of 2007, the Employment and Labour Relations Court (ELRC) adjudicates workplace disputes in Kenya. Section 35 of the Employment Act 2007 governs termination of employment. The National Social Security Fund Act No. 45 of 2013 mandates employer contributions to NSSF. The Social Health Insurance Fund (SHIF) replaced NHIF in 2024. The Kenya Revenue Authority (KRA) administers PAYE under the Income Tax Act (Cap. 470). Forms-legal.com provides this template as a starting point for Kenya-compliant documentation.