A Simple Guide to Staying Compliant & Protected Statutory payments in Kenya are legal requirements. They protect employees and ensure employers operate within the law. Understanding them helps: ✔ Employers avoid penalties ✔ Employees understand their payslip
What You'll Learn
Critical Statutory Payments & Deductions
in Kenya
A Simple Guide to Staying Compliant & Protected
Statutory payments in Kenya are legal requirements.
They protect employees and ensure employers operate within the law.
Understanding them helps:
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1⃣ National Social Security Fund (NSSF)
National Social Security Fund
NSSF provides retirement benefits to employees.
Contribution Structure:
This ensures income security after retirement.
2⃣Social Health Insurance Fund (SHIF)
Social Health Authority (SHA)
SHIF provides national health insurance coverage.
Key Points:
3⃣ Pay As You Earn (PAYE)
Kenya Revenue Authority
PAYE is income tax deducted directly from salary.
How it works:
This funds public services and national development.
4⃣ Employee’s Compensation Fund
Employers contribute to cover employees for:
Contribution rates depend on industry risk level.
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5⃣ Statutory Maternity & Paternity Leave
Under Kenyan law:
Paid directly by the employer.
These provisions promote family stability and work-life balance.
6⃣ Statutory Annual Leave
Employees are entitled to:
Employees receive full pay during leave.
This supports rest, productivity, and well-being.
7⃣ Public Holiday Pay
Employees must receive their regular pay for official public holidays that fall within their work schedule.
This ensures income stability even on non-working public days.
📌 Why Compliance Matters
For Employers:
For Employees:
Final Takeaway
In Kenya, statutory payments like:
Are not optional — they are legal obligations and worker protections.
Staying informed ensures both businesses and employees operate confidently and lawfully.
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