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2 Oct 2026
By RecruitFinds
Getting a job offer is exciting, but accepting the offer without reading the employment contract carefully can create problems later. In Kenya, employers use different types of employment arrangements, including fixed-term contracts, permanent employment and casual employment. Each arrangement can affect how long the job lasts, how termination works, notice is given, and what employment benefits you may receive.
The Employment Act, 2007 provides minimum employment protections, while the actual contract can provide additional terms as long as they do not take away rights provided by law. For a job seeker, understanding the wording of an offer letter is therefore just as important as checking the salary.
A fixed-term contract is an employment agreement that has a defined beginning and ending date. For example, an employer may offer you a 12-month contract running from January 1 to December 31.
The important point is that the contract has a known expiry date. Kenyan courts have repeatedly recognized that a genuine fixed-term contract generally comes to an end when the agreed period expires. An employer does not ordinarily have to renew it simply because the employee performed well or has worked under several previous contracts.
This does not mean fixed-term employees have no employment rights. During the period of employment, they are still employees and are entitled to statutory protections applicable to them.
A fixed-term contract should clearly state the duration of employment and, where applicable, the conditions for early termination. The Employment Act requires employment particulars to include the expected duration where employment is not intended to be indefinite and, for a fixed-term arrangement, the date on which it will end.
Before signing a fixed-term contract, look for:
The exact start and end dates.
Whether the contract can be terminated before the expiry date.
The notice period for early termination.
Whether there is a probationary period.
Whether renewal is automatic, discretionary or subject to a new agreement.
Your salary and payment dates.
Leave entitlement.
Any gratuity or other contractual benefits.
The circumstances under which the employer can terminate the agreement.
One major red flag is language suggesting that your contract will automatically be renewed without clearly explaining the conditions. A renewal clause does not necessarily guarantee that another contract will be offered. Kenyan case law generally treats renewal as a separate contractual decision unless the agreement creates a specific obligation.
Permanent employment generally refers to employment without a predetermined end date. Instead of saying that the job ends after six months or one year, the employment continues until either the employee resigns, the employer lawfully terminates the employment, or another lawful event brings the relationship to an end.
Permanent employment does not mean that an employer can never terminate your employment. The Employment Act establishes rules concerning termination and dismissal, including notice and, in applicable cases, procedural and substantive requirements.
For contracts where salary is paid monthly, the statutory notice period under section 35 is generally 28 days unless the contract provides for a longer notice period. A contract can therefore provide, for example, one month, two months or another longer period.
An employee may also leave without serving the notice period if the applicable legal or contractual arrangement allows payment in lieu of notice.
When reviewing a permanent employment offer, do not focus only on the word "permanent." Check the actual terms governing resignation, termination, probation, leave, benefits and disciplinary procedures.
Casual employment is different from simply having a short contract.
Under the Employment Act, casual employment generally involves payment at the end of each day for work that is not expected to continue for more than 24 hours at a time. However, the law also provides circumstances in which an arrangement described as casual can become a term contract.
Section 37 is particularly important. Where a casual employee works for a period or number of continuous working days equivalent to at least one month, or performs work that cannot reasonably be expected to be completed within a period equivalent to three months or more, the law provides for conversion to a contract where wages are paid monthly.
This means a worker should not assume that an employer can keep someone on a "casual" arrangement indefinitely simply by repeatedly calling the job casual.
The Court of Appeal has also recognized that once the statutory conditions for conversion are met, the employee may become entitled to terms and conditions applicable under the Employment Act.
Notice is one of the most important sections of an employment contract.
For employees paid monthly, section 35 of the Employment Act provides a minimum 28-day notice period where the contract does not provide for a longer period. Contracts can provide for a longer notice period.
Your contract should therefore tell you what happens if you want to resign and what happens if the employer wants to terminate the employment.
For a fixed-term contract, however, do not automatically assume that the normal notice rules mean the employer must give you notice when the contract simply reaches its agreed expiry date. Kenyan court decisions have generally held that a fixed-term contract expires by effluxion of time, unless the contract itself provides otherwise.
This distinction is important.
A contract ending on its stated expiry date is different from an employer deciding to terminate a contract before that date.
Another common mistake is assuming that only permanent employees receive leave.
The Employment Act provides an annual leave entitlement of at least 21 working days after every 12 consecutive months of service. The Act also contains provisions dealing with leave where employment ends after at least two completed months during a leave-earning period.
Other statutory leave rights can also apply depending on the circumstances, including maternity, paternity and sick leave.
For example, the Employment Act provides for two weeks of paternity leave with full pay and, after two consecutive months of service, sick leave of at least seven days with full pay followed by seven days with half pay in each 12-month period, subject to the statutory requirements.
Therefore, when reviewing an offer, check whether the contract clearly explains your leave arrangements rather than assuming that a fixed-term or other non-permanent arrangement automatically removes statutory rights.
If an employer says the job is temporary but the offer does not clearly state how long the employment will last, ask for clarification.
You should know what happens if either side wants to end the employment before the expected end date.
Phrases such as "renewable depending on performance" should not be interpreted as a promise of renewal. Ask who makes the decision, when renewal is considered and whether a new contract will be required.
If you are working regular hours, performing continuing duties and the arrangement keeps being extended, ask why you are being classified as a casual employee. Section 37 contains circumstances in which casual employment is converted into a term contract.
Check whether the amount quoted is gross salary or the amount you will actually receive after statutory and other lawful deductions.
If an employer promises a particular allowance, bonus, insurance benefit, commission or other benefit, ask whether it should be included in the written agreement or accompanying policy.
Be cautious about clauses giving the employer extremely broad discretion to terminate employment without explaining the applicable procedure or contractual terms.
A legitimate employment offer should give you an opportunity to read and understand the terms. If something is unclear, ask questions before signing rather than relying on verbal explanations.
Before accepting a job in Kenya, check these items:
Job title and responsibilities.
Employer's legal name.
Work location.
Start date.
End date, if applicable.
Gross salary and payment frequency.
Working hours.
Probation period.
Notice period.
Termination conditions.
Annual leave.
Sick leave and other applicable statutory leave.
Allowances and benefits.
Disciplinary procedure.
Renewal conditions for fixed-term contracts.
Any restrictions or obligations that continue after employment ends.
If any important term is missing, ask the employer or HR department to clarify it before you sign.
The biggest mistake a job seeker can make is looking only at the salary figure when evaluating an employment offer. The type of contract can affect how long the job is expected to last, how termination works and what you should expect when the agreement reaches its end.
A fixed-term contract has a defined duration and will generally expire on the agreed date unless the contract provides otherwise. Permanent employment has no predetermined expiry date but can still be ended according to the law and the employment contract. Casual employment is designed for specific short-term circumstances, and the Employment Act provides mechanisms for conversion where the statutory conditions are met.
Before signing any offer letter, read the entire document, not just the salary section. Pay particular attention to the start and end dates, notice requirements, termination clauses, leave provisions, benefits and renewal language.
When you understand exactly what you are agreeing to, you can enter a new job with clearer expectations and fewer surprises.
