Executive summary

Earlier this year, several Orders relating to the deduction and remittance of union dues and agency fees were published in the Kenya Gazette under the Labour Relations Act, 2007. While these Orders were gazetted in the first quarter of 2025, their compliance requirements remain current and continue to affect employers across various sectors. This alert provides a summary of the key provisions and practical steps for ongoing compliance. Affected employers must adhere to the relevant Orders to avoid violating the Labour Relations Act, which could result in a fine of up to 40,000 shillings.

Detailed discussion

The Kenya Union of Special and Professional Guards (Deduction of Union Dues) Order, 2024

Employers who employ more than five members of the Kenya Union of Special and Professional Guards are required to:

• Deduct 250 shillings from the wages of union members
• Remit the deducted amounts within 10 days of the deduction via crossed cheque or electronic funds transfer to the union's designated bank account (Account number 10021211000018 at Consolidated Bank of Kenya Limited, Harambee Avenue Branch, Nairobi)
• Begin deductions within 30 days of the Order coming into effect
• Notify the union in writing within one month of making the payments
• File returns with the Registrar of Trade Unions at P.O. Box 40326–00100 within one month of making all payments to the union

The Amalgamated Union of Kenya Metal Workers (Deduction of Union Dues) Order, 2024

This Order revokes Gazette Notice No. 72 of 2018, indicating a change in the legal framework governing union dues for this specific union. Employers who employ more than five members of the Amalgamated Union of Kenya Metal Workers are required to:

• Deduct 2% of the monthly consolidated wages (basic wages plus house allowance) of union members, capped at a maximum of 1,500 shillings
• Remit the deducted amounts within 10 days of the deduction via crossed cheque or electronic funds transfer to the union's designated bank account, which is Account number 0102002028800 at Standard Chartered Bank of Kenya, Moi Avenue Branch, Nairobi
• Begin deductions within 30 days of the order coming into effect
• Notify the union in writing within one month of making the payments
• File returns with the Registrar of Trade Unions, at P.O. Box 40326–00100, within one month of making all payments to the union

The Kenya Union of Commercial Food and Allied Workers Union (Deduction of Agency Fees) Order, 2024

The Mwea Rice Growers Multipurpose Co-operative Society Limited is required to:

• Deduct a monthly fee of 2% of the employee's basic wage, subject to a minimum of 200 shillings, from the basic salary of each employee who is covered by the Collective Bargaining Agreement registered by the Employment and Labour Relations Court as RCA. No. 13 of 2023 and is eligible to join the union, but who is not a member of the Kenya Union of Commercial Food and Allied Workers Union or any other trade union
• Begin deductions within 30 days of the order coming into effect
• Remit the deducted amounts within 10 days of the deduction via crossed cheque or electronic funds transfer to the union's designated bank account (Account number 0941822290 at Absa Bank, Queens Way Branch, Nairobi)
• Notify the trade union in writing within one month of making the payments
• File returns with the Registrar of Trade Unions at P.O. Box 40326–00100, Nairobi, within one month of making all payments to the union

The Kenya Tertiary and Schools Workers' Union (Deduction of Union Dues) Order, 2024

Employers who employ more than five members of the Kenya Tertiary and Schools Workers' Union are required to:

• Deduct 2% of the employee's basic salary, subject to a minimum deduction of 200 shillings
• Remit the deducted amounts within 10 days of the deduction via crossed cheque or electronic funds transfer to the union's designated bank account (Account number 10021211000019 at Consolidated Bank of Kenya Limited, Harambee Avenue Branch, Nairobi)
• Begin deductions within 30 days of the order coming into effect
• Notify the union in writing within one month of making the payments
• File returns with the Registrar of Trade Unions, P.O. Box 40326–00100, Nairobi, within one month of making all payments to the union

Implications for employers

Employers should remain attentive to the ongoing compliance requirements introduced by the recent union dues and agency fees deduction Orders. To avoid penalties under the Labour Relations Act, it is essential to ensure timely and accurate deductions, remittances and filings. These administrative obligations may affect payroll processes and employee take-home pay, so employers are encouraged to review their systems and maintain clear records. By proactively aligning payroll and HR practices with the Orders and keeping abreast of regulatory developments, employers can navigate these changes smoothly.