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:
This guide explains how employers should approach casual worker pay in Kenya in 2026. It builds on our broader employer guide to casual workers in Kenya.
Casual worker pay in Kenya: the key points
Employers should remember five important principles:
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:
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 official Employment 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:
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.
Selected occupation | Nairobi, Mombasa, Kisumu, Nakuru and Eldoret | Former municipalities, Mavoko, Ruiru and Limuru | All other areas |
|---|---|---|---|
General labourer, cleaner, gardener, messenger, house servant or day watchman | KES 868.44 | KES 797.80 | KES 487.94 |
Miner, stone cutter, turnboy, waiter, cook, logger or line cutter | KES 936.88 | KES 828.55 | KES 549.91 |
Night watchman | KES 966.02 | KES 900.31 | KES 554.07 |
Machine attendant, bakery worker, tailor’s assistant or similar worker | KES 982.70 | KES 920.44 | KES 745.15 |
These are selected examples, not the complete wage schedule. Employers should consult the official Regulation of Wages (General) (Amendment) Order, 2026 before setting or reviewing wages.
Separate wage orders apply to certain sectors.
For example, agricultural employers should consult the Regulation 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 on Kenya’s new minimum wage for 2026.
Do casual worker daily rates include housing allowance?
Under the 2026 General Wage Order:
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:
Type of work | Minimum overtime rate |
|---|---|
Time worked beyond the normal working hours | 1.5 times the normal hourly rate |
Work performed on the employee’s normal rest day | 2 times the normal hourly rate |
Work performed on a public holiday | 2 times the normal hourly rate |
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:
The applicable working-hour rules must be checked for the particular employment.
The detailed overtime provisions are contained in the Regulation 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:
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.
Category | Examples |
|---|---|
Gross worker earnings | Ordinary wages, overtime, rest-day pay, public-holiday pay and applicable allowances |
Employee deductions | NSSF employee contribution, SHIF, Affordable Housing Levy employee contribution, PAYE and other lawful deductions |
Employer costs | Employer NSSF contribution, employer Affordable Housing Levy contribution, WIBA cover, PPE, recruitment, supervision, administration and other applicable costs |
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:
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:
The employer portion is an additional employment cost. It should not be deducted from the employee’s wages.
See the official NSSF Year 4 contribution notice and our detailed guide to the NSSF 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 the Social Health Insurance Regulations.
3. Affordable Housing Levy
The Affordable Housing Levy is calculated as follows:
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 its Affordable 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%:
Monthly taxable pay band | Tax rate |
|---|---|
First KES 24,000 | 10% |
Next KES 8,333 | 25% |
Next KES 467,667 | 30% |
Next KES 300,000 | 32.5% |
Income above KES 800,000 | 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 current KRA 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:
Employers should be particularly cautious about deductions for:
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. Employer safety duties are covered in our guide to employer WIBA and safety responsibilities.
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:
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:
However, using cash or mobile money does not turn the payment into an informal transaction.
The employer should still be able to demonstrate:
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
During the assignment
Before payroll is processed
After payment
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:
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:
WIBA-related costs are employer obligations and should not be deducted from workers’ earnings. Employers can review the applicable responsibilities in the Work Injury Benefits Act and our practical guide to WIBA obligations and claims management.
We examine these costs in detail in 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:
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.
A review can help your organisation identify:
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.
Related Reading
The True Cost of Casual Labour in Kenya: What Employers Often Leave Out of Their Budgets
When Does Casual Employment Become a Term Contract in Kenya? Section 37 Explained
Casual Workers in Kenya: What Employers Need to Know About Contracts, Pay, Rights and Compliance
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