Filing Your Employee Returns

The Employment Act of Kenya requires employers to file employee returns with the National Employment Authority (NEA) every year. The returns should indicate the number of employees employed by the company within the year and those who left the employment, including their full name, age, sex, occupation, date of employment, nationality, educational level and reasons for the termination where applicable.

Filing employee returns in Kenya is mandatory for employers with 25 employees and above. The returns should be filed before 31st January of the next year. Failure to file returns and make the periodic notifications is an offence under the employment act, and employers found guilty upon conviction are liable to a fine not exceeding one hundred thousand shillings or to imprisonment for a term not exceeding six months or both.

NEA is a government agency created under the National Employment Authority Act to ensure employment management, including:

1. advising the government on the creation of employment policies and strategies;
2. enhancing access to employment for the youth, minorities and marginalised groups;
3. maintaining a database of Kenyans seeking employment;
4. circulating employment vacancies for access by all Kenyans;
5. creating a platform to facilitate access to employment opportunities for all Kenyans in both public and private sectors;
6. conducting  periodic surveys on labour market skills requirements and facilitating continuous training to improve employee’s skills;
7. registering persons seeking employment;
8. facilitating placement of students in internship positions or tertiary institutions; and
9. encouraging equity and diversity in employment for all Kenyans.

In addition to filing the annual employee returns with NEA every year, the law requires employers to notify the director of employment (who is yet to be appointed) of the termination of every employee within two weeks of such termination. Employers are also required to notify the director of employment when a vacant position has been filled or abolished within two weeks of the position being filled or abolished. So far, it is not clear whether these periodic notifications should be made to NEA in the absence of a director of employment.

Employees seeking employment opportunities are required to register with NEA in order to gain access to the employment opportunities database.

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