Can an Employer Deduct for Damaged Company Property in Kenya?

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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