Pay & working terms · 3 min read
Salary deductions in Kenya: what your employer may and may not take
The full list of deductions section 19 of the Employment Act allows, the limits on loans and absence, the two-thirds cap, and the deductions that are never allowed.
Your employer must pay your wages in full, but the Employment Act lists specific deductions it may make. Anything outside that list, or above the limits, needs a lawful basis. Here is the list with the limits beside each item.
Deductions the law allows
- Contributions to a provident fund, superannuation scheme or other approved scheme you agreed to join (section 19(1)(a)).
- A reasonable amount for damage to or loss of the employer's property caused by your wilful default (section 19(1)(b)).
- Up to one day's wages for each full working day you are absent without leave or lawful cause (section 19(1)(c)).
- A cash shortage caused by your negligence or dishonesty, where your contract specifically makes you responsible for handling money (section 19(1)(d)).
- Wages paid to you in error (section 19(1)(e)).
- Amounts authorised by law, a collective agreement, a wage determination, a court order or an arbitration award, such as PAYE, NSSF, SHIF and the housing levy (section 19(1)(f)).
- Amounts you asked for in writing, where the employer has no interest in them (section 19(1)(g)).
- Repayment of a loan from the employer under a written agreement, up to fifty per cent of the wages left after other deductions (section 19(1)(h)).
The limits
All deductions at any one time may not exceed two thirds of your wages, unless the Cabinet Secretary has prescribed a different amount (section 19(3)).
An employer may never deduct anything as a reward for giving you a job or keeping you in it (section 19(2)).
Common problems
- A uniform or training fee taken from your first pay, with no written agreement: ask which part of section 19 it falls under.
- Cash shortages taken from a cashier whose contract does not say they handle money: section 19(1)(d) requires that.
- Deductions for breakages that were accidents rather than wilful default.
- A salary advance repaid faster than agreed in writing.
Ask payroll in writing for the basis of any deduction you do not recognise. Keep the payslip and the answer.
Sources and further reading
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Frequently asked questions
What deductions can an employer make from salary in Kenya?
Only those in section 19 of the Employment Act, such as statutory deductions, agreed pension contributions, wilful damage, absence without leave, cash shortages for staff entrusted with money, overpayments, written requests and loan repayments.
What is the maximum an employer can deduct?
All deductions at one time may not exceed two thirds of your wages (section 19(3)).
Can an employer deduct a fee for giving me the job?
No. Section 19(2) bars any deduction as a reward for providing or keeping employment.