Casual Worker Pay in Kenya: Minimum Wages, Overtime, Rest Days and Statutory Deductions

Last reviewed: September 2026

Casual labour is frequently described as a simple arrangement: engage a worker for the day, agree on a daily rate and pay them when the work is complete.

In practice, casual worker pay in Kenya is rarely that simple.

The employer must establish whether the agreed rate complies with the applicable minimum wage, whether housing has been accounted for, whether overtime or rest-day pay is due and which statutory deductions and employer contributions apply.

The amount paid directly to the worker may therefore differ from both the worker’s gross earnings and the employer’s total labour cost.

Poor casual payroll management can expose an organisation to:

• Minimum-wage claims
• Unpaid overtime and rest-day claims
• Incorrect statutory deductions
• Interest and penalties on unremitted contributions
• Disputes over days or hours worked
• Claims that workers were improperly classified as casuals
• Unexpected liabilities following labour inspections or employee claims

This guide explains how employers should approach casual worker pay in Kenya in 2026.

Casual worker pay in Kenya: the key points

Employers should remember five important principles:

1. There is no single minimum wage for every casual worker in Kenya.
2. Minimum wages vary according to occupation, sector and location.
3. Overtime, rest-day work and public-holiday work may attract higher rates.
4. Calling someone a casual worker does not automatically exempt their earnings from statutory deductions.
5. A worker’s wage is not the same as the employer’s total workforce cost.

A compliant payroll process must therefore answer more than one question. It must establish who worked, where they worked, what work they performed, how many ordinary and overtime hours they completed and which deductions or contributions apply.

Who is considered a casual worker in Kenya?

Under Kenya’s Employment Act, a casual employee is generally an individual engaged on terms providing for payment at the end of each day and who is not engaged for more than 24 hours at a time.

However, the casual label does not remain valid indefinitely.

Section 37 of the Employment Act may convert casual employment into term employment where the worker:

• Works continuously for at least one month; or
• Performs work that cannot reasonably be completed within three months.

Once conversion occurs, the worker may become entitled to protections associated with term employment, including notice, rest days, leave and other employment benefits.

Employers should therefore determine employment status before processing payroll. Paying a worker daily does not necessarily mean that the individual remains a genuine casual employee.

We explore this question in detail in our companion article,When Does Casual Employment Become a Term Contract in Kenya? Section 37 Explained.

The relevant definitions and conversion rules can be reviewed in the officialEmployment Act, 2007.

Is there one minimum daily wage for casual workers in Kenya?

No.

Kenya does not prescribe one universal casual worker rate. The correct minimum depends on:

• The worker’s occupation
• The industry or sector
• The geographical location
• Whether the worker is paid monthly, daily or hourly
• Whether housing is provided or included
• The applicable Regulation of Wages Order

An employer should not select a convenient daily figure and apply it to every cleaner, loader, guard, farm worker, machine operator or hospitality employee.

The first step is to identify the correct wage order and occupational category.

Selected minimum daily wages in Kenya for 2026

The Regulation of Wages(General)(Amendment) Order, 2026 was gazetted on 26 June 2026 and took effect from 1 May 2026.

Below are selected minimum daily rates from the General Wage Order. The prescribed daily rates are inclusive of housing allowance.

These are selected examples, not the complete wage schedule. Employers should consult the officialRegulation of Wages(General)(Amendment) Order, 2026 before setting or reviewing wages.

Separate wage orders apply to certain sectors.

For example, agricultural employers should consult theRegulation of Wages(Agricultural Industry)(Amendment) Order, 2026. Under that order, the prescribed minimum consolidated wage for an unskilled agricultural employee is KES 9,196.93 per month or KES 386.24 per day.

Employers should avoid relying on the General Wage Order where a more specific industry order applies.

For a wider analysis of the latest rates, read our guide onKenya’s new minimum wage for 2026.

Do casual worker daily rates include housing allowance?

Under the 2026 General Wage Order:

• The prescribed monthly minimum wage is exclusive of housing allowance.
• The prescribed daily and hourly minimum rates are inclusive of housing allowance.

This distinction is important.

Where a monthly employee is not provided with suitable housing, the employer must generally pay a housing allowance or use a properly documented consolidated wage that includes a housing component.

For genuine daily-paid casual workers, employers should not automatically add a second housing allowance to a prescribed daily rate that is already stated to be inclusive of housing.

However, the wage records and engagement terms should make the basis of payment clear. A payroll entry that merely states“daily pay” may create uncertainty about what the rate was intended to cover.

Employers should also avoid converting a monthly minimum wage into a daily wage by simply dividing or multiplying it. Monthly, daily and hourly figures in the wage schedule are prescribed pay categories and may not produce equivalent amounts when mechanically converted.

When does overtime apply to casual workers?

Casual workers can qualify for overtime pay.

The fact that a worker is paid daily does not give the employer an unlimited right to extend the working day without additional compensation.

Under the General Wage Order, overtime is generally payable at:

Employers should first determine the normal working hours under the applicable wage order, contract or sector rules.

Under the General Wage Order, the ordinary working week is generally limited to 52 hours spread over six days. Different rules can apply to night workers and employees governed by sector-specific wage orders.

It is therefore unsafe to assume that:

• Every hour after 5 p.m. is automatically overtime;
• Overtime only begins after eight hours in every occupation;
• A flat daily rate covers any number of hours; or
• Casual workers are not entitled to overtime.

The applicable working-hour rules must be checked for the particular employment.

The detailed overtime provisions are contained in theRegulation of Wages(General) Order.

How should the normal hourly rate be calculated?

Where an employee is paid by the hour, the starting point is the employee’s ordinary hourly rate, provided that it is not below the applicable statutory minimum.

For workers paid on another basis, the employer must convert the employee’s basic wage into the normal hourly rate using the method prescribed by the applicable wage order.

Under the General Wage Order, the basic hourly rate for an employee who is not employed by the hour is generally treated as one two-hundred-and-twenty-fifth of the employee’s basic monthly wage.

The overtime calculation should use the employee’s actual applicable basic wage—not a lower minimum-wage figure where the employee is already paid above the minimum.

Simple overtime example

Assume that a worker’s correctly calculated normal hourly rate is KES 200.

If the worker completes three qualifying overtime hours on an ordinary working day:

KES 200× 1.5× 3 hours= KES 900

If the same worker completes three hours on their designated rest day:

KES 200× 2× 3 hours= KES 1,200

The double rate is the total rate for those hours. It should not ordinarily be treated as the normal rate plus a separate double-rate payment, which would incorrectly produce triple pay.

Is Sunday automatically a rest day?

Not necessarily.

The Employment Act entitles an employee to at least one rest day during every period of seven days. However, the employee’s designated rest day may depend on the organisation’s shift arrangement or duty roster.

For example, an employee working in hospitality, security, healthcare, logistics or manufacturing may have a weekday as their rostered rest day.

The payroll question should therefore be:

Did the employee work on their designated rest day?

It should not simply be:

Did the employee work on Sunday?

Employers need clear rosters because a payroll team cannot calculate rest-day pay correctly if it cannot identify each worker’s ordinary working days and designated rest day.

What happens when a casual worker works on a public holiday?

Where the General Wage Order applies, qualifying work performed on a public holiday is payable at twice the normal hourly rate.

Employers should:

• Identify gazetted public holidays correctly.
• Capture the worker’s actual hours.
• Separate public-holiday hours from ordinary hours.
• Apply the correct multiplier.
• Retain attendance and payment records.
• Check whether a sector-specific wage order provides different or additional rules.

A flat daily payment that ignores the public-holiday premium may create an underpayment, even where the ordinary daily rate is above the statutory minimum.

From gross casual pay to net pay

Casual payroll becomes easier to understand when the amounts are separated into three categories.

The basic calculation is:

Gross earnings– lawful employee deductions= net pay

The employer’s total cost is calculated separately:

Gross earnings+ employer contributions+ workforce operating costs= total employment cost

An employer contribution should never be deducted from the worker merely because it increases the cost of employment.

Do statutory deductions apply to casual workers in Kenya?

Potentially, yes.

A casual employment label is not an automatic exemption from NSSF, SHIF, Affordable Housing Levy or PAYE.

The employer must examine:

• Whether an employment relationship exists
• The worker’s actual earnings
• The period covered by the payroll
• Whether multiple daily payments must be aggregated
• The applicable statutory thresholds and contribution rules
• Whether the engagement has converted under Section 37

One of the most common payroll risks occurs when a worker is paid repeatedly during the month but each daily payment is treated as an isolated transaction.

For example, an individual may receive 18 separate daily payments from the same employer. Looking at each payment separately can hide the worker’s total monthly remuneration and lead to incorrect statutory calculations.

A reliable payroll process should aggregate payments against a unique employee identity.

1. NSSF contributions for casual workers

NSSF contributions apply to employees covered by the NSSF Act, and employers should not assume that casual workers are excluded merely because they receive daily wages.

From February 2026, the Year 4 NSSF contribution structure provides for:

• An employee contribution of 6% of pensionable earnings
• A matching employer contribution of 6%
• A Lower Earnings Limit of KES 9,000
• An Upper Earnings Limit of KES 108,000
• A maximum employee contribution of KES 6,480 per month
• A maximum matching employer contribution of KES 6,480 per month

The employer portion is an additional employment cost. It should not be deducted from the employee’s wages.

See the officialNSSF Year 4 contribution notice and our detailed guide to theNSSF rates effective February 2026.

2. SHIF contributions for casual workers

For a salaried household, the Social Health Insurance Fund contribution is generally calculated at 2.75% of gross salary or wages, subject to a minimum contribution of KES 300 per month.

The employee bears the contribution; there is no equivalent matching employer contribution under the current framework.

Employers should calculate the contribution using the relevant aggregated remuneration and remit it within the statutory deadline.

The governing provisions are available in theSocial Health Insurance Regulations.

3. Affordable Housing Levy

The Affordable Housing Levy is calculated as follows:

• Employee contribution: 1.5% of gross salary
• Employer contribution: 1.5% of the employee’s gross salary
• Combined amount: 3% of gross salary

The employee’s 1.5% share is deducted from gross earnings. The employer’s matching 1.5% is an additional employer cost.

The employer must declare and remit both amounts within the required deadline. KRA’s official guidance is available in itsAffordable Housing Levy notice.

4. PAYE

PAYE may apply where the worker’s taxable employment income produces a tax liability after the applicable deductions and reliefs.

The current monthly individual income tax bands range from 10% to 35%:

The current personal relief for a qualifying resident individual is KES 2,400 per month.

Many low-paid casual workers may not ultimately have PAYE payable after applying the tax rules and personal relief. However, the employer should reach that result through a proper payroll calculation—not by assuming that all casual workers are exempt.

PAYE returns and payments are generally due by the ninth day of the following month. Employers should consult the currentKRA PAYE guidance when processing payroll.

Which deductions can an employer make from casual worker pay?

An employer may only make deductions that are authorised by law, a court order, a collective agreement or a valid written arrangement permitted under the Employment Act.

Examples can include:

• Statutory contributions
• PAYE
• Court-ordered deductions
• Recovery of a lawful and documented advance
• Certain authorised employee contributions
• Other deductions expressly permitted by law

Employers should be particularly cautious about deductions for:

• Damaged tools or equipment
• Cash shortages
• Lost stock
• Uniforms
• Personal protective equipment
• Transport
• Meals
• Failure to meet a production target
• Alleged absence or lateness

A deduction should not be made merely because a supervisor believes the worker caused a loss. The employer should establish the facts, observe the applicable process, obtain any necessary authority and document the calculation.

Personal protective equipment required for health and safety should not casually be converted into a worker deduction.

Should casual workers receive payslips?

Section 20 of the Employment Act contains exclusions relevant to genuine casual employees and certain piece-rate, task-rate or short engagements.

Nevertheless, providing an understandable wage statement is a strong payroll control and employment-relations practice.

A casual worker payment statement can show:

• Worker’s name and identification number
• Payroll or assignment number
• Worksite
• Job category
• Dates worked
• Ordinary hours or days
• Overtime hours
• Rest-day or public-holiday hours
• Applicable wage rate
• Gross earnings
• Each employee deduction
• Net pay
• Payment method and reference
• Employer’s name

This information protects both parties.

It helps the worker understand how payment was calculated and gives the employer evidence when a payment is later disputed.

Practical casual wage calculation

Consider a general labourer working in Nairobi under the 2026 General Wage Order.

Assume the worker completes six ordinary days during one week, with no rest-day or public-holiday work.

The prescribed minimum daily rate is KES 868.44, inclusive of housing allowance.

Ordinary earnings:

6 days× KES 868.44=KES 5,210.64

This is the worker’s ordinary gross wage for the six days before any additional earnings or deductions.

If qualifying overtime was worked, it would be calculated separately using the worker’s correct normal hourly rate and the applicable multiplier.

The payroll team would then aggregate the worker’s earnings for the relevant contribution or tax period before determining NSSF, SHIF, Affordable Housing Levy and PAYE.

This example is deliberately limited to the wage calculation. Statutory deductions should not be estimated by applying percentages to an isolated payment without considering the worker’s full payroll-period earnings and the applicable rules.

The payment method does not determine compliance

A worker can be paid through:

• A bank account
• Mobile money
• A payroll card
• A cheque
• Cash

However, using cash or mobile money does not turn the payment into an informal transaction.

The employer should still be able to demonstrate:

• Who received the payment
• What period the payment covered
• How the gross amount was calculated
• Which deductions were made
• Whether the worker confirmed receipt
• Whether statutory amounts were declared and remitted

For mobile-money payments, the transaction reference should be linked to the worker and payroll record. For cash payments, a properly controlled and signed payment schedule is essential.

Common casual payroll mistakes employers should avoid

1. Using one daily rate for every worker

A cleaner, guard, machine operator, waiter and farm worker may fall under different occupational or sector rates.

2. Using an outdated minimum wage schedule

Continuing to use rates that applied before 1 May 2026 can create accumulating wage arrears.

3. Ignoring location-based rates

A rate that is compliant in one area may be below the prescribed minimum in another.

4. Treating the daily rate as an all-inclusive unlimited-hours payment

Ordinary wages do not automatically absorb overtime, rest-day and public-holiday premiums.

5. Calculating every day independently

Repeated daily payments should be connected to one worker record and aggregated where necessary for payroll and statutory purposes.

6. Deducting employer contributions from the worker

The employer’s share of NSSF and the Affordable Housing Levy must remain an employer cost.

7. Paying unidentified workers

Nicknames, duplicate phone numbers and incomplete identification create opportunities for ghost workers, double payments and incorrect statutory reporting.

8. Allowing supervisors to approve their own attendance and payroll

Attendance capture, verification, payroll preparation and payment approval should have appropriate separation of duties.

9. Ignoring Section 37 conversion

A worker may cease to be a genuine casual employee even if the organisation continues paying them daily.

10. Keeping no evidence of payment

An M-Pesa message, unsigned cash list or spreadsheet without approval history may not provide a complete payroll audit trail.

A stronger casual payroll control process

A reliable casual workforce payroll process should include the following controls.

Before deployment

• Verify each worker’s identity.
• Confirm the job category and applicable wage order.
• Communicate the ordinary rate and payment frequency.
• Record the designated rest day.
• Confirm statutory registration details.
• Issue basic engagement and workplace documentation.

During the assignment

• Capture clock-in and clock-out times.
• Record the worksite and supervisor.
• Separate ordinary, overtime and public-holiday hours.
• Require approval for overtime.
• Record absences and replacements.
• Prevent one worker from being registered under multiple identities.

Before payroll is processed

• Reconcile attendance with approved deployment schedules.
• Check the rate against the current wage order.
• Review workers approaching Section 37 conversion.
• Aggregate all payments belonging to the same worker.
• Calculate statutory deductions and employer contributions.
• Investigate unusual hours, duplicate bank accounts or mobile numbers.
• Obtain independent payroll approval.

After payment

• Issue a payment breakdown.
• Reconcile the payroll to bank, mobile-money or cash records.
• File statutory returns.
• Remit deductions and employer contributions on time.
• Retain payment and attendance records.
• Resolve worker queries through a documented process.

How technology improves casual payroll management

Spreadsheet-based casual payroll can work for a very small workforce, but risk increases rapidly as the number of workers, sites, shifts and supervisors grows.

A casual workforce management system can help an employer connect:

• Worker onboarding
• Identity verification
• Deployment
• Time and attendance
• Rate allocation
• Overtime approval
• Payroll processing
• Statutory deductions
• Payment records
• Contract or engagement history
• Section 37 risk alerts
• Management reporting

PiPOHRIS helps organisations centralise these processes and create a clearer audit trail from worker onboarding to final payment.

Technology does not replace the employer’s legal obligations. It makes those obligations easier to apply consistently across multiple workers, locations and payroll periods.

The daily wage is not the total cost of casual labour

When budgeting, employers often multiply the agreed daily rate by the expected headcount and number of days.

That calculation can materially understate the cost.

The complete cost may include:

• Ordinary wages
• Overtime
• Rest-day and public-holiday pay
• Employer NSSF contributions
• Employer Affordable Housing Levy contributions
• WIBA insurance
• Recruitment and mobilisation
• Identity verification
• Induction and training
• Personal protective equipment
• Transport or meals
• Attendance management
• Supervisory time
• Payroll administration
• Worker replacement
• HR technology
• Dispute and compliance management

WIBA-related costs are employer obligations and should not be deducted from workers’ earnings. Employers can review the applicable responsibilities in theWork Injury Benefits Act and our practical guide toWIBA obligations and claims management.

Our next article will examine these costs in detail:The True Cost of Casual Labour in Kenya: What Employers Often Leave Out of Their Budgets.

Frequently asked questions about casual worker pay in Kenya

What is the minimum daily wage for a casual worker in Kenya?

There is no single rate. The applicable minimum depends on occupation, sector and location. Employers should check the current wage order before setting the daily rate.

Are casual workers entitled to overtime?

Yes. Where a casual worker exceeds the applicable normal hours, overtime may be payable at the prescribed rate.

What is the overtime rate in Kenya?

Under the General Wage Order, ordinary overtime is generally paid at 1.5 times the normal hourly rate. Work on the employee’s rest day or a public holiday is generally paid at twice the normal hourly rate.

Is Sunday automatically paid at double rate?

Not automatically. Double-rate treatment generally applies when Sunday is the worker’s designated rest day or is also a public holiday. The roster determines the normal rest day.

Does the daily minimum wage include housing allowance?

Under the 2026 General Wage Order, prescribed daily and hourly minimum rates are inclusive of housing allowance. Prescribed monthly minimum wages are exclusive of housing allowance.

Must casual workers contribute to NSSF?

Casual status does not automatically remove NSSF obligations. Employers should assess coverage and calculate contributions under the current NSSF rules.

Is SHIF deducted from casual worker pay?

Where the worker is treated as a salaried contributor under the applicable rules, SHIF is generally deducted at 2.75% of gross salary or wages, subject to the minimum monthly contribution.

Does the Affordable Housing Levy apply to casual workers?

An employment label does not by itself create an exemption. Where applicable, the employee contributes 1.5% of gross salary and the employer contributes a matching 1.5%.

Do casual workers pay PAYE?

PAYE depends on taxable remuneration, allowable deductions, applicable tax bands and reliefs. Employers should calculate it from aggregated payroll-period earnings instead of automatically exempting casual workers.

Can an employer deduct the cost of damaged equipment?

A deduction should only be made where it is legally permitted, factually supported and processed in accordance with the Employment Act. Arbitrary deductions can create wage claims.

Can casual workers be paid through M-Pesa?

Yes. However, the employer should link the transaction reference to the worker, payroll period and approved wage calculation.

What happens if a casual worker is employed continuously?

The engagement may convert into term employment under Section 37 of the Employment Act. The employer may then owe additional employment rights and benefits.

Need help managing casual worker payroll?

Casual labour can give an organisation valuable workforce flexibility. That flexibility should not come at the cost of payroll accuracy, worker trust or legal compliance.

ACCUREX helps employers manage casual and outsourced workforces through:

• Labour outsourcing
• Casual worker recruitment and mobilisation
• Employment documentation
• Time and attendance management
• Payroll processing
• Statutory deduction management
• Compliance monitoring
• Workforce reporting
• HR technology through PiPOHRIS

Whether you manage ten casual workers at one site or hundreds across multiple locations, ACCUREX can help you establish a more controlled, transparent and scalable process.

Talk to ACCUREX about a casual payroll and compliance review, a workforce cost assessment or a managed labour-outsourcing solution.

A review can help your organisation identify:

• Incorrect or outdated wage rates
• Unpaid overtime exposure
• Missing statutory deductions
• Section 37 conversion risks
• Weak attendance and payment controls
• Opportunities to automate casual workforce management

ACCUREX— We Build People. We Grow Organizations.

Visit:www.accurex.co.ke
Email:info@accurex.co.ke

This article provides general information and is not a substitute for legal, tax or payroll advice. Wage orders and statutory rates may change, and sector-specific rules may apply. Employers should obtain advice based on their workforce, industry and circumstances.