Salary Deductions in Kenya: 9 Things Employers Can’t Do

Updated 2 November 2026

Salary deductions in Kenya are tightly limited by section 19 of the Employment Act, 2007: an employer may only deduct items on the Act’s list, the total of all deductions at any one time may not exceed two-thirds of your wages, and money deducted for NSSF, SHIF, a Sacco, a loan or a court order must actually be paid over, or the employer commits an offence. Anything outside those rules, such as a “fee” for giving you the job or a fine for being late beyond a day’s pay, is not allowed.

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Below are nine things Kenyan employers cannot legally do with your pay, each taken directly from the Employment Act, with the section number so you can check it yourself. Updated November 2026. Source: Employment Act, 2007 (Kenya Law), sections 17, 19 and 20.

What salary deductions in Kenya are allowed?

Section 19(1) lists the only deductions an employer may make from wages. Everything else is unlawful unless another written law, a collective agreement or a court order authorises it.

To see how statutory deductions such as PAYE, SHIF, NSSF and the Housing Levy reduce your pay, run your gross figure through our PAYE calculator for Kenya.

9 things Kenyan employers can’t do with your salary

1. Take more than two-thirds of your wages. Section 19(3) says the total of all deductions at any one time “shall not exceed two-thirds of such wages”, unless the Cabinet Secretary prescribes otherwise. In practice you must take home at least a third of your pay.
2. Charge you for getting or keeping the job. Section 19(2) bans any deduction “as an advance of wages in consideration of, or as a reward for, the provision of employment” or for retaining you in employment. Section 17(4) also makes it an offence to promise money on condition that someone takes up a job.
3. Keep deducted money instead of remitting it. Under section 19(4) and (5), an employer who deducts pension, statutory, Sacco or loan money and fails to pay it over on time commits an offence, punishable by a fine of up to KSh 100,000, up to two years in jail, or both. Section 19(6) lets the court order a refund to you and payment to the intended beneficiary from the employer’s own funds.
4. Fine you more than a day’s pay for each day absent. Section 19(1)(c) caps absence deductions at one day’s wages for each full working day you are away without leave or lawful cause.
5. Make you pay for accidental damage. Section 19(1)(b) only covers loss or damage caused by your wilful default, and even then only a reasonable amount.
6. Recover till shortages from anyone. Section 19(1)(d) applies only where your contract specifically entrusts you with receiving, keeping and paying out money.
7. Take a big employer loan from your whole salary. Section 19(1)(h) caps loan recovery at 50% of wages remaining after all other deductions, and needs a written agreement. Section 17(9) adds that an advance above one month’s wages (two months’ wages under a written contract) cannot be recovered in court.
8. Tell you where to spend your pay. Section 17(11) forbids an employer from limiting how you dispose of your wages, or forcing you to spend them at a shop or business in which the employer has an interest.
9. Pay you without a payslip. Section 20 requires a written statement at or before each payment showing gross pay, each deduction and its purpose. Casual, piece-rate and short-term (up to six months) workers are excluded. Our first payslip guide explains each line.

How wages must be paid

Section 17 requires the full wage to be paid in Kenyan currency, in cash, into a bank or building society account you choose, by cheque or money order, or to someone you authorise in writing. Wages must be paid on a working day during working hours, and an employer may not pay you in a bar or any place where alcohol is sold unless you work there. Wilful failure to pay is an offence carrying the same KSh 100,000 fine or two-year jail term.

Worked example: the two-thirds cap

Say your gross monthly pay is KSh 45,000. The most all deductions together can take at one time is two-thirds, or KSh 30,000, leaving at least KSh 15,000. If a Sacco loan, an employer loan and statutory deductions would add up to more than KSh 30,000, the excess cannot lawfully come off that month’s wages. The employer still keeps any right to recover a genuine debt by other lawful means, as section 19(3) states.

What to do if salary deductions in Kenya break these rules

• Ask for an itemised payslip (section 20) and compare each deduction with the list above.
• Check remittances yourself. Look up your NSSF statement and your Sacco or HELB statement to confirm money deducted actually arrived. Unremitted loan deductions can also hurt your credit record; see our CRB guide.
• Raise it in writing with HR, quoting the section.
• Report to the county labour office (the State Department for Labour) or file a claim at the Employment and Labour Relations Court. If you are leaving, our notice pay calculator and severance pay calculator show what you should be paid on exit.

Frequently asked questions

What is the maximum salary deduction allowed in Kenya?

All deductions together at any one time may not exceed two-thirds of the employee’s wages, under section 19(3) of the Employment Act, unless the Cabinet Secretary prescribes a different amount.

Can my employer deduct money for a broken item?

Only a reasonable amount, and only if the loss or damage was caused by your wilful default (section 19(1)(b)). Accidental damage is not covered.

Can an employer deduct salary for lateness or absence?

For unauthorised absence, the deduction is capped at one day’s wages for each full working day missed (section 19(1)(c)).

What happens if my employer deducts NSSF but does not remit it?

It is an offence under section 19(5), punishable by a fine of up to KSh 100,000, up to two years in prison, or both, and the court can order the employer to pay the money from its own funds.

Sources: Employment Act, 2007, sections 17, 19 and 20 (Kenya Law), read 2 November 2026. This is general information, not legal advice.