Severance Pay Calculator (Kenya, 2026)
Kenyan redundancy severance pay = at least 15 days' pay for each completed year of service (Employment Act 2007, section 40(1)(g)), on top of one month's notice or pay in lieu and payment for unused leave. Employees outside NSSF or any pension or provident scheme who leave by notice get service pay at the same 15 days a year under section 35.
· Calculated with AiStaffo
The rules in Kenya
| Law | Employment Act, 2007, sections 35 and 40 |
|---|---|
| Redundancy severance (s.40(1)(g)) | Not less than 15 days' pay for each completed year of service |
| Service pay (s.35(5)) | At least 15 days' pay per completed year when a contract ends by notice, but only for employees who are not members of NSSF, a pension or provident fund, or a gratuity or service-pay scheme |
| Daily pay | Monthly pay ÷ 30 |
| Pay used | Last monthly pay; where housing is not provided, courts have added a housing allowance to basic pay |
| Part years | Only completed years count |
| Also payable on redundancy | One month's notice or one month's pay in lieu, and cash for unused annual leave |
| Notice to authorities | At least one month's written notice of the redundancy to the employee (or union) and the Labour Officer |
Worked example
Monthly pay KES 60,000, declared redundant after 6 years and 9 months. Only completed years count, so 6 years are used.
Daily pay 60,000 ÷ 30 = KES 2,000. 2,000 × 15 days × 6 years = KES 180,000, plus one month's notice pay and unused leave.
Severance or service pay?
Severance pay is for redundancy only. Service pay is a separate right for employees who leave by notice and are not covered by NSSF or any pension, provident, gratuity or service-pay scheme; since NSSF membership is compulsory for most employees, few qualify. Neither is due on resignation by an employee who is in NSSF, or on summary dismissal for gross misconduct.
For employers: gratuity is one line of what a role costs
Gratuity, leave, statutory contributions and notice periods all sit on top of salary. Routine back-office roles such as data entry, follow-ups, reconciliations and reporting can be handed to AI workers that carry none of these costs. Book a free automation audit and we will put your own figures on it.
Please note: this calculator follows the published law and common practice as checked on 21 October 2026. It is a guide, not legal advice. Contracts can give more than the legal minimum, and special cases (part-time work, free zones, disputes) can change the figure, so confirm the final amount with your HR team or a lawyer before paying or accepting a settlement.
Sources
Questions people ask
How is severance pay calculated in Kenya?
Do I get severance pay if I resign in Kenya?
What else is paid on redundancy?
Is severance pay calculated on basic or gross pay?
Do part years count?
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