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Can an Employer Deduct for Damaged Company Property in Kenya?

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Employers may seek to recover losses from employees but must follow strict guidelines under Kenyan law.


Instructions to Handle Damage Deductions:


Step 1: Investigate the Incident

  • Gather incident reports and evidence

  • Allow employee to explain or dispute


Step 2: Determine Liability

  • Confirm negligence or default by employee


Step 3: Calculate Reasonable Amount

  • Ensure deduction is proportionate to damage value


Step 4: Obtain Written Consent

  • Employee must agree in writing before deduction


Step 5: Apply Deduction within Legal Limits

  • Ensure total deductions do not exceed two‑thirds of basic pay


Key Takeaways:

  • Deductions for damage require due process.

  • Employee consent and fair calculation are mandatory.

  • Legal cap on deductions must be respected.

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