Employment Models in Kenya

Kenya, a country known for its vibrant culture, stunning landscapes, and economic growth, boasts a diverse employment landscape. As the job market evolves, understanding the various employment models becomes crucial for both employers and employees. In this blog, I'll delve into the different employment models in Kenya, shedding light on their characteristics, advantages, and challenges.

What are the different types of employment in Kenya?

The Kenyan labour market offers various employment modules including: 

• Formal Employment
• Informal Employment 
• Freelancing and Gig Economy
• Freelancing and Gig Economy

Let us explore each employment model in the Kenyan labour market in detail.

Formal Employment Model in Kenya:

Formal employment in Kenya is the traditional employer-employee relationship, where individuals are hired by a company and receive a regular salary.

The employees often benefit from job security, legal protections, and access to social security schemes.

Companies deduct taxes and contribute to benefits such as pensions and medical insurance on behalf of their formal employees.

Advantages of Formal Employment in Kenya:

• Job security and stability.
• Access to social security benefits.
• Legal protections.

Challenges of Formal Employment in Kenya:

• Costly for employers due to statutory deductions.
• Limited flexibility for both employees and employers.

Informal Employment Model in Kenya:

This type of employment is prevalent in Kenya, especially in sectors like agriculture and small businesses. Individuals in informal employment often lack formal contracts, and payments are commonly made in cash. This model provides flexibility but may lack benefits associated with formal employment, such as access to social security schemes, legal protection, and so forth.

Advantages of the Informal Employment Model in Kenya:

• Flexibility for both employers and employees.
• Lower costs for employers.

Challenges of the Informal Employment Model in Kenya:

• Lack of job security.
• Limited access to legal protections and benefits.

Temporary or Contract Employment Model in Kenya:

Temporary or contract employment involves hiring individuals for a specific period or project. Contract employees enjoy flexibility but may face uncertainty once their contract expires.

Advantages of the Employment Model in Kenya

• Flexibility for employers in managing workloads.
• Opportunities for varied experiences for employees.

Challenges to the Employment Model in Kenya:

• Job insecurity for employees.
• Limited access to long-term benefits.
   

Freelancing and Gig Economy Employment Model in Kenya:

With the rise of digital platforms, freelancing and gig work have become increasingly popular.

Workers offer their skills and services on a project basis, providing flexibility for both workers and employers. While this model offers autonomy, freelancers may face income volatility and lack certain benefits.

Advantages of the Freelancing Employment Model in Kenya:

• Flexibility in choosing the projects to work on.
• Autonomy and independence.

Challenges of the Freelancing Employment Model in Kenya:

• Income volatility.
• Lack of job security and other benefits.

Conclusion:

In Kenya, navigating the employment landscape involves understanding the nuances of various employment models. Whether one chooses the stability of formal employment, the flexibility of informal or temporary work, or the autonomy of freelancing, it's crucial to be aware of the advantages and challenges associated with each model.