Doing Business in Kenya - RSM International

5.3.2 WagesAlthough the Employment Act does not make any specific provisions for wages, allwages are subject to the minimum wage provided for in the Regulations of Wagesand Conditions of the Employment Act and the minimum wage guidelines issued andrevised yearly by the Ministry of Labour. These guidelines outline the occupationsand the rate of payment on monthly/daily/hourly basis.In practice, there are two major classes of employees - the management cadre (whoprimarily are not unionised by choice) and the junior staff who are unionised. Thewages paid to non-unionised staff is negotiated between the employer and theemployee and is contained in the employment contract. For employees that optto join relevant trade unions, wages are normally negotiated by their union andcontained in the respective Collective Bargaining Agreement (CBA).5.3.3 Working HoursThe normal working week is outlined by the specific wage regulations order for thegiven industry but is not more than 52 hours spread over 6 days of the week.5.3.4 OvertimeFor the management staff, it is usual practice for the wages negotiated to contain theaspect of overtime and as such it is not paid as a separate entitlement.However, for the junior staff, overtime is paid at the rates of one and one-half timethe basic hourly rate on weekdays, and at the rate of twice the basic hourly rateon Sundays and public holidays. There are different Regulations of Wages Orders inforce, covering different sectors of the economy.5.3.5 LeaveAnnual LeaveUnder the Employment Act, every employee shall be entitled to no less than 21working days of annual leave with full pay. Where the employee works for less thana year, the number of days will be reduced accordingly. This is a minimum and manycontracts and collective agreements provide for annual leave of between 30 to 45days. On average, Kenyan employees enjoy annual leave of 24 days.Sick LeaveUnder the Employment Act, an employee is entitled to paid sick leave after a periodof 2 consecutive months of service. The minimum period of entitlement is 7 dayswith full pay and 7 days with half-pay for every 12 months. The longest period ofentitlement is 30 days with full pay and 15 days with half-pay. The employee ishowever expected to produce a certificate of incapacity to work signed by a dulyqualified medical practitioner.66DOING BUSINESS IN KENYA