Career advice · Updated October 2026

Termination Notice in Kenya: Notice Periods, Pay in Lieu and Resignation Rules

Whether you are resigning or your employer is letting you go, the first practical question is how much notice has to be given. Termination notice in Kenya is governed by sections 35, 36 and 38 of the Employment Act, 2007. The rules apply to both sides, so they decide how long an employee must keep working after resigning, as well as how much warning an employer must give. Here is how they work, with examples you can apply to your own payslip.

Minimum notice depends on how often you are paid

Section 35(1) links the minimum notice to your pay cycle, not to your seniority or years of service:

For most salaried people the figure that matters is 28 days. Notice is counted from the day after it is given: notice handed over on 3 November ends on 1 December.

The Act sets a floor, not a ceiling. Section 35(2) says these minimums do not apply where your contract provides a longer written notice period. One month is common; three months is usual for senior managers, and many public service and bank contracts set their own terms. If your contract gives more notice than the Act, the contract applies to both of you.

Notice under section 35(1)(b) and (c) must be in writing. Section 35(3) adds that if an employee cannot understand the notice, the employer must make sure it is explained orally in a language the employee understands.

Pay in lieu of notice

Section 36 lets either party end the contract immediately by paying the other the remuneration that would have been earned during the notice period. Note the word remuneration. Section 2 defines it as the total value of all payments in money or in kind arising from the employment, so pay in lieu should normally include regular allowances such as house allowance, not just basic salary.

A quick example: Wanjiru earns a basic salary of KSh 50,000 plus a KSh 10,000 house allowance and her contract requires one month’s notice. If the employer asks her to leave the same day, pay in lieu should be one month’s remuneration, KSh 60,000 before PAYE and other statutory deductions. Run the figure through our net salary calculator to see the take-home amount, or use Business Radar’s notice pay calculator to compare notice periods.

Resigning: what you owe your employer

Because section 35 binds both parties, an employee on a monthly contract who resigns must give at least 28 days’ written notice, or longer if the contract says so. If you need to leave sooner, you have three options:

1. Agree a shorter notice period with your employer in writing. This is the cleanest route.
2. Pay in lieu under section 36: you pay, or let the employer offset from your final dues, the pay for the unserved notice.
3. Use accrued leave, if your employer agrees, to cover part of the notice period. Our annual leave guide explains how leave days build up.

Walking out without notice is a breach of contract and can also be treated as absence without leave, which section 44(4)(a) lists as possible gross misconduct. Resign in writing, keep a stamped or emailed copy, and note the date your last day falls on.

When the employer waives your notice

A common scenario: you resign giving a month’s notice and HR tells you to clear your desk today. Section 38 deals with this directly. Where an employee gives notice and the employer waives all or part of it, the employer must pay the employee the remuneration for the notice period not served, unless the two agree otherwise. So unless you sign something saying you accept leaving early without pay, you should be paid for the rest of the notice.

Notice is not the same as a fair reason

Many employers believe that giving a month’s notice, or paying a month’s salary, ends any argument. It does not. Section 35(4)(a) preserves the employee’s right to challenge the fairness of a termination even where notice was given. An employer who ends a contract still has to prove a valid and fair reason and follow a fair procedure under sections 41, 43 and 45. Our guide to unfair termination in Kenya explains that test and the compensation available.

The reverse also applies. Section 35(4)(b) keeps the right of either side to end the contract without notice for a cause recognised by law, such as gross misconduct under section 44. See our guide to summary dismissal for what qualifies and the hearing that is still required.

Fixed-term contracts that simply run to their end date usually end without notice unless the contract requires it; check the renewal and notice clauses in your letter of appointment.

Service pay and other money due when notice ends

Section 35(5) entitles an employee whose contract is ended under section 35(1)(c) to service pay for every year worked. Section 35(6) switches that off for anyone who is a member of NSSF, a registered pension or provident fund, a gratuity or service pay scheme under a collective agreement, or a more favourable employer scheme. Because most formal-sector employees contribute to NSSF, statutory service pay is often not due, but a contract or CBA can still provide gratuity.

At the end of the notice period you should also receive:

• salary for the days worked up to your last day;
• pay for earned but untaken annual leave;
• any notice pay owed under section 36 or 38;
• refunds or benefits your contract provides, such as gratuity; and
• a certificate of service under section 51, if you worked for four consecutive weeks or more.

Our terminal dues guide covers each item, and the terminal dues calculator adds them up for you.

Notice during probation

Probation is the exception. Section 42(4) lets either party end a probationary contract with not less than seven days’ notice, or by the employer paying seven days’ wages in lieu. Probation cannot exceed six months, extendable once by up to six months with the employee’s agreement. Read more in our probation period guide.

If notice is not given or not paid

An employee dismissed without the notice they were entitled to can claim notice pay as part of the remedies under section 49(1)(a). Raise it in writing with HR first, then take it to the county labour officer or the Employment and Labour Relations Court. Section 89 generally requires a claim within three years. For an overview of all your rights at work, see our plain-English guide to the Employment Act.

Serving notice and job hunting? Update your CV with our free CV builder and browse the latest jobs in Kenya.

Key takeaways

• Minimum notice in Kenya depends on the pay cycle: none for daily pay, one pay period for weekly or fortnightly pay, and 28 days for monthly pay.
• A longer notice period in your contract overrides the statutory minimum, and it binds both employer and employee.
• Either side can end the contract immediately by paying remuneration for the notice period, including regular allowances.
• If your employer cuts short the notice you gave, it must pay for the unserved period unless you agree otherwise.
• Giving notice does not make a termination fair: a valid reason and fair procedure are still required.

Frequently asked questions

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