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July 16, 2023
REGULATION OF PRIVATE EMPLOYMENT AGENCIES IN KENYA
It is crucial to comprehend the laws governing private employment agencies in light of the recent cases of Kenyans being conned into paying hundreds of thousands of shillings for jobs in Canada, the United States, the United Kingdom, Australia, Dubai, and Qatar.
REGISTRATION OF PRIVATE EMPLOYMENT AGENCIES
An Agency may be registered by the Director of Employment to carry out business of a private employment if-
- The Agency is duly registered as a limited liability company under the Companies Act 215, and in which at least one Kenyan citizen owns shares.
- The directors of the Agency have attained a KCSE or O-Level certificate and good conduct to be renewed after 12 months (Mandatory).
- The manager in charge of the agency must have a degree in a business related field from a university recognized in Kenya by the CUE.
- The manager must have a relevant experience of at least 3 years.
- The Agency must have a minimum share capital of 5 Million shillings.
- The Agency must deposit Kshs. 1.5 million with a reputable bank or insurance firm in Kenya to be used for the purpose of repatriation, paying wages and other entitlements in for compensation of workers whose contract have been defaulted
These strict laws were enacted following complaints from the public that fake agencies had enticed Kenyans with the promise of well-paying job but instead had either defrauded them of their money or placed them in subpar positions, particularly in the Gulf Countries.
As the Government works to purge the market of fraudulent hiring agencies, only Recruitment Agencies run by business graduates and with at least 5 million shillings in share capital are permitted to hire and place Kenyans in positions abroad, including Canada, the United States, the United Kingdom, Australia, Dubai, and Qatar.