Every employment relationship in Kenya must be governed by a written contract for formal positions. The Employment Act 2007 is the primary legislation, and it sets minimum standards that no contract can fall below — regardless of what the employer and employee agree to in writing.
A valid employment contract in Kenya must specify: the names of employer and employee, the date employment begins, the job title and duties, the place of work, the remuneration (base salary, any allowances, and payment frequency), working hours, leave entitlements (annual, sick, maternity/paternity), and the notice period required for termination. In many cases the contract follows the offer letter that precedes it, which should already set out the key commercial terms so the contract can formalise them.
Beyond the legal minimums, a well-drafted contract also covers: probation period (typically 3–6 months), confidentiality obligations, intellectual property ownership (critical for roles that produce written work, software, or research), non-solicitation clauses, and the dispute resolution process.
Common errors in Kenyan employment contracts: failing to specify whether allowances are consolidated into the salary or separate (which has NSSF and NHIF implications), using notice periods shorter than the Act requires, including non-compete clauses that are too broad to be enforceable, and not updating contracts when roles change materially. Once both parties are ready to execute, you can sign the final document electronically without needing to print.
For simple, short-term, or freelance arrangements, a service agreement rather than an employment contract is often more appropriate — it governs a deliverable rather than an ongoing employment relationship and does not carry the same statutory obligations. Once signed, both parties should retain a copy; if the arrangement involves ongoing work, you may also need to raise an invoice for freelance or contractor work at the end of each billing period.