Finance

Severance Pay Calculator Kenya (Redundancy)

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.

Estimate only. Rates checked 13 Oct 2026.

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

Norah Waceke

About Author

Norah Waceke is a business journalist and editor at Business Radar with more than eight years of experience covering Kenya's economy, companies and markets. She previously worked at Kenyans.co.ke, one of the country's leading digital news platforms, where she reported on business, finance and current affairs. A graduate of Multimedia University of Kenya, Norah focuses on clear, accurate reporting that helps readers understand the money stories shaping their lives and businesses.

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