Under section 40 of the Employment Act, an employer declaring an employee redundant must pay severance of at least 15 days’ pay for each completed year of service, give at least one month’s notice or pay in lieu, and pay out accrued leave in cash.
How it is worked out
The calculator treats a day’s pay as monthly pay ÷ 30. Your contract or CBA may give more, and leave pay is extra. Severance on redundancy is a statutory minimum; your employer must also follow the notice and selection rules in section 40.
Frequently asked questions
How much is severance pay in Kenya?
At least 15 days’ pay for each completed year of service on redundancy.
Is notice extra?
Yes. At least one month’s notice or wages in lieu, plus accrued leave.
More: All guides · Tax calculators · PAYE calculator
Sources
- Employment Act, 2007 (Kenya Law) (checked 13 October 2026)


