Legal Requirements
Kazisafi is designed to keep your payroll and HR operations compliant with Kenyan labor law. This page covers the key legal requirements Kazisafi enforces and how it supports your compliance obligations.
The One-Third Rule (Employment Act, Section 19(3))
Section titled “The One-Third Rule (Employment Act, Section 19(3))”Kenyan law requires that an employee’s total deductions never exceed two-thirds of their gross pay. Every employee must take home at least one-third of their gross salary.
How Kazisafi Enforces This
Section titled “How Kazisafi Enforces This”- During payroll calculation, Kazisafi checks that the sum of all deductions (statutory and voluntary) does not exceed two-thirds of gross pay.
- When creating payroll components, Kazisafi validates that adding a new deduction would not push total deductions beyond the allowed limit.
- Compliance alerts notify you if any employee’s deductions would breach the one-third rule, preventing the payroll run from being finalized until the issue is resolved.
Statutory Leave Minimums
Section titled “Statutory Leave Minimums”The Employment Act prescribes minimum leave entitlements that every employer must provide. Kazisafi enforces these as floors: you can offer more, but never less.
| Leave Type | Minimum Entitlement |
|---|---|
| Annual Leave | 21 working days per year |
| Sick Leave | 14 days per year (after 2 months of service) |
| Maternity Leave | 90 calendar days |
| Paternity Leave | 14 calendar days |
Public Holidays
Section titled “Public Holidays”Kenya observes a number of gazetted public holidays each year. Kazisafi handles these automatically.
- Automatic updates: public holidays are kept current for each calendar year.
- Leave calculations: public holidays that fall within a leave period are excluded from the count of leave days used.
Government Reporting
Section titled “Government Reporting”Kazisafi generates the reports you need to file with government agencies.
| Report | Agency | Purpose |
|---|---|---|
| P10 | Kenya Revenue Authority (KRA) | Monthly PAYE returns |
| NSSF Report | National Social Security Fund | Monthly pension contributions |
| SHIF Report | Social Health Insurance Fund | Monthly health insurance contributions |
| HELB Report | Higher Education Loans Board | Loan repayment deductions |
These reports can be generated directly from the payroll module after each pay run, ready for submission.
Audit Trail
Section titled “Audit Trail”Kazisafi maintains a comprehensive audit trail to support compliance reviews, audits, and dispute resolution.
Payroll Records
Section titled “Payroll Records”Every payroll calculation is stored with a full breakdown including:
- Gross pay components and their amounts
- Each statutory deduction and how it was calculated
- Voluntary deductions and employer contributions
- Net pay after all deductions
You can revisit any past payroll run and see exactly how every figure was arrived at.
Salary History
Section titled “Salary History”All changes to an employee’s salary are tracked over time, including the previous and new amounts, the effective date, who made the change, and the reason.
Leave Request Tracking
Section titled “Leave Request Tracking”Every leave request is recorded with:
- The employee who made the request
- The dates and leave type
- The approver who approved or declined the request
- The date and time of the decision
Data Retention
Section titled “Data Retention”Kazisafi preserves all records permanently, even when they are no longer in active use. When something is removed from day-to-day views, it is kept in the background rather than permanently deleted.
- Employee records are preserved even after an employee exits the company.
- Payroll history is never deleted, ensuring records are always available for past periods.
- Leave records remain accessible for historical reporting.
This ensures your data is always available for compliance purposes, audits, and legal proceedings.