Kenya redundancy calculator: what an employer must pay when a job is declared redundant
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 20 Oct 2026.Declared redundant in Kenya? Section 40 of the Employment Act sets three payments: at least fifteen days’ pay for each completed year of service, one month’s notice or a month’s wages instead, and any leave due paid in cash. On KSh 50,000 a month after eight full years that is KSh 200,000 of severance, counting a day as a thirtieth of the month.
2026 · Rates and rules read from Employment Act, 2007 (No. 11 of 2007), section 40, Kenya Law (as amended to 26 April 2024) on 20 Oct 2026; they may have changed since.
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This calculator works out the minimum redundancy dues that section 40 of Kenya's Employment Act, 2007 makes a condition of terminating a job on account of redundancy.
Severance. Section 40(1)(g) requires "severance pay at the rate of not less than fifteen days pay for each completed year of service". Only completed years count: eight years and seven months is eight years. The calculator multiplies fifteen days by a day's pay and by the completed years.
What it does not do. Tax on the payment, more generous collective agreements, termination on insolvency (Part VIII), pay for days worked in the last month and the notification and selection rules of section 40(1)(a)-(c) are left out. The Act was read on Kenya Law on 20 October 2026 in its version amended to 26 April 2024; it may have changed since. These are estimates, not legal advice.
The rest of the article, and all 6 questions about Kenya Severance Pay Calculator (Redundancy), are on the Kenya Severance Pay Calculator (Redundancy) page.
Section 40(1)(g) of the Employment Act sets at least fifteen days' pay for each completed year of service. Multiply a day's pay by 15 and by the completed years: on KSh 60,000 a month, counting a day as a thirtieth, eight years give 15 × 2,000 × 8 = KSh 240,000.
Section 40 lists three payments: severance of at least fifteen days' pay per completed year, one month's notice or one month's wages in lieu of notice, and any leave due paid off in cash. The calculator adds the three; a collective agreement may give more than this minimum.
Severance counts completed years only, so eight years and eleven months is paid as eight. The calculator shows the extra months next to the result so you can see how close the next year is; a contract or agreement may still count part years.
The calculator shows the amounts before tax and does not work out any tax on them, because the Employment Act section it follows says nothing about tax. Ask the employer or the Kenya Revenue Authority how your payment is treated; the Kenya PAYE calculator shows the monthly tax bands.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Kenya Severance Pay Calculator (Redundancy) and anybody who knows can answer. No account needed.
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