Kenyan redundancy dues: 15 days’ pay a year, a month’s notice pay and leave, by section 40
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 20 Oct 2026.Under section 40 of Kenya's Employment Act an employee declared redundant gets at least fifteen days' pay for each completed year of service, one month's notice or a month's wages in lieu, and untaken leave in cash. On KSh 60,000 a month after 8 full years, severance is KSh 240,000.
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.
Type the monthly pay and the start and last dates of work.
Add the leave days earned and not taken, and say whether you worked the month’s notice.
Pick how a day’s pay is worked out: monthly pay divided by 30 or by 26.
Read the severance, notice pay, leave pay and the total the Act sets as a minimum.
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.
A day's pay. The Act does not say how a day's pay is worked out from a monthly wage. The calculator divides the monthly pay by 30 by default and lets you choose 26, the working-day basis some employers use. On KSh 60,000 that is KSh 2,000 or KSh 2,307.69 a day, and the choice changes the result by about 15%, so use the basis in your contract or agreement.
Notice. Section 40(1)(f) requires not less than one month's notice or one month's wages in lieu of notice. Turn on "I worked the month's notice" if you did, and the wages in lieu drop out.
Leave. Section 40(1)(e) requires leave due to be paid off in cash. Type the days earned and not taken; they are paid at the same day's pay.
Example. KSh 60,000 a month from 1 March 2018 to 30 September 2026 is 8 completed years: 15 × 2,000 × 8 = KSh 240,000 severance, plus KSh 60,000 in lieu of notice and KSh 20,000 for 10 leave days, KSh 320,000 in all.
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.
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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 under section 40(1)(g) is counted per completed year, so less than one full year gives none. The month's notice or wages in lieu and the untaken leave are still due, and the calculator shows both when the service is under a year.
The Employment Act does not say. Dividing by 30 counts calendar days; dividing by 26 counts working days and gives about 15% more. The calculator uses 30 unless you switch it, so check your contract, collective agreement or payslip for the basis your employer applies.
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.
Same job, other tools: Salary After Tax Calculator – Old regime or new regime, and what each leaves you every month · Earned Leave Encashment Calculator – Earned or privilege leave turned into rupees at your basic pay and DA · Leave Encashment Tax Calculator – The exempt and the taxable halves of a leave payout, with the rule that capped it · Last Working Day Calculator – The exact date your notice ends, counted in calendar days · Notice Period Buyout Calculator – What an employer recovers for the notice days you do not serve.
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