Doing Business in Kenya - RSM International

are precluded by the laws of the countries of their acquired domicile from holdingdual citizenship, persons who have held work permits for at least seven years andhave been continuously resident in Kenya for the 3 years immediately preceding themaking of the application, children of citizens who are born outside Kenya and haveacquired citizenship of the domicile and the spouses of Kenyan citizens married forat least three years are eligible to be issued with a permanent residence certificate.5.3 Labour LawEmployment relations in Kenya are regulated by a number of sources includingconstitutional rights, statutory rights, as set out in statutes and regulations; rightsset by collective agreements; and individual labour contracts. Following are some ofthe Kenyan legislation enacted relating to employment and related matters:• The Employment Act, 2007 (which repealed the then Employment Act) whichcame into force on 2nd June 2008.• The Occupational Safety and Health Act, 2007 (which repealed the Factoriesand Other Places of Work Act) which came into force on 26th October 2007.• The Work Injury Benefits Act No. 13 of 2007 (which repealed the Workman’sCompensation Act) which came into force on 2nd June 2008.• The Labour Institutions Act, 2007 (which repealed the Regulation of Wages andConditions of Employment Act (Chapter 229, Laws of Kenya)) which came intoforce on 2nd June 2008.The legal requirements under these statutes are interpreted and enforced by theIndustrial Court, and in some cases by the ordinary courts. International standards,especially ILO Conventions ratified by Kenya are used by the Government and courtsas guidelines.5.3.1 Employment ContractsIn Kenya, employment contracts are governed primarily by the Employment Act aswell as the principles of common law. The employer is mandated by law to prepareand provide written contracts for all employees hired for more than 3 months at atime.Employment contracts must contain all employment particulars including the name,age, permanent address and sex of the employee, the name of the employer, thejob description of the employment, the date of commencement of the employment,the form and duration of the contract, the place of work, the hours of work, theremuneration, scale or rate of remuneration, the method of calculating thatremuneration and details of any other benefits, the intervals at which remunerationis paid.Employment terms are negotiated by the employee and employer subject to theminimum prescribed by the Employment Act.DOING BUSINESS IN KENYA65