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Kenya employers will soon be required to contribute 1% of an employee's gross salary to the fund for workers’ compensation.
 
Through the draft, Workers’ Injury Compensation Bill 2024, members of parliament want employees who get injured on the job to be compensated.  If passed into law, the new Bill will see employer's payroll payments increase even after the government introduced the 1.5% Housing Levy.

Kenyan workers who suffer an injury while working will be subject to compensation via the workers' compensation fund. Workers Compensation Bill 2024 awaits parliament approval.

The fund is set to come into effect, should the proposed Workers Injury Compensation Bill 2024 pass into law.

The draft Workers Injury Compensation Bill 2024 requires all employers in Kenya to contribute 1% of the employee's gross salary into the fund.
 
“An employer carrying on business in Kenya shall, within the prescribed period, submit to the Fund 1% of the gross monthly earnings of every employee as employer monthly contributions,” read the Bill in part.

According to the proposals, no employee is required to contribute to the fund. This means that only employers will shoulder the burden, exerting pressure to payrolls after the government introduced extra taxes similar to the 1.5% Housing Levy.

How will injured employees get compensation? Once an injury is reported at work, the Bill requires employers to report the incident to the fund's authority within seven days. The accident could be acts of violence arising out of or in the course of employment, which results in one or more workers suffering a personal injury, disease, or death and includes a commuting accident.

“The employer in whose service an employee is at the time of the accident shall be liable for the payment of the compensation of the first month from the date of accident, and after the end of the first month, the director-general shall refund the compensation paid by the employer,” the Bill continued in part.

How long will an injured worker receive compensation? The bill further states that the compensation fund will be paid to the injured employee until the end of the disability. If the worker is permanently disabled, he or she will be subject to monthly payments defined by a payout cap and other terms. The Bill, that awaits parliamentary approval, is at the public participation stage that ends on April 30, 2024.

adjustercom, www.adjustercom.com, lonce@adjustercom.com, Lonce Lamonte, journalist