Redundancy & Severance Calculator Kenya
Estimate statutory severance and common redundancy dues, then run a guided check of the core notice, selection and process requirements under section 40 of Kenya's Employment Act.
Estimate your redundancy package
For monthly-paid employees. The result is a gross planning estimate before statutory deductions and does not determine whether the redundancy is lawful.
How redundancy and severance work in Kenya
Section 2 of the Employment Act defines redundancy as an involuntary loss of employment through no fault of the employee, initiated by the employer where the employee's services have become superfluous. Section 40 then sets conditions that must be satisfied before terminating employment on account of redundancy.
Advance notice of the intended redundancy
Where the employee is a union member, section 40 requires notice to the union and the labour officer of the reasons for and extent of the intended redundancy not less than one month before the intended termination. For a non-union employee, written notice is given personally to the employee and to the labour officer. This intended-redundancy notification is distinct from the employee's termination notice or wages in lieu.
Selection criteria
Where employees must be selected from an affected class, section 40 requires due regard to seniority in time, skill, ability and reliability. If a collective agreement sets redundancy benefits, the employee should not be disadvantaged for being or not being a union member.
Leave, notice and severance
Any leave due is to be paid off in cash. The Act also requires not less than one month's notice or one month's wages in lieu and severance at not less than fifteen days' pay for each completed year of service. The calculator keeps those components separate.
Completed years
The statutory wording uses “each completed year of service.” The calculator therefore excludes the incomplete final part of a year from the statutory severance formula. A contract or CBA may provide a more favourable formula.
Consultation
Kenyan redundancy decisions repeatedly emphasise consultation as part of a fair redundancy process and as one of the purposes of advance notice. The checker flags an absence of meaningful consultation as an issue for review without treating that answer alone as a final legal conclusion.
Daily-rate assumption
For a monthly-paid employee, the calculator uses monthly pay divided by 30 for the daily estimate. Kenyan employment decisions frequently use this approach, but the applicable salary basis and divisor can depend on the contract, CBA and facts.