Legal Alerts

Employment Law Alert: Clearance Certificates

The Employment (Amendment) Act 2022 came into force on 22nd April 2022. The Act amends section 9 of the Employment Act of 2007. Employers are now barred from requesting for clearances from applicants unless they intend to enter into an employment contract with them. However, employers can withdraw a contract of service where the employee does not meet the requirements of leadership and integrity under
Chapter Six of the Constitution. This subsection does not apply to state office vacancies since clearances are often a requirement for those applying to fill state office positions.

Clearances serve the purpose of showing that an applicant has been compliant with laws and regulations. Some of these clearances include:
a. A certificate of good conduct from the Director of Criminal Investigations;
b. A certificate from the Ethics and Anticorruption Commission;
c. A certificate from the Credit Reference Bureau;
d. A tax compliance certificate from the Kenya Revenue Authority;
e. A certificate from the Higher Education Loans Board;
f. A certificate from the Law Society of Kenya and the Advocates Complaints Commission, in the case of Advocates.

The Employment (Amendment) Act 2022 has made the issuance of compliance certificates free of charge. Further, entities that issue compliance certificates must accept or reject an application for clearance certificates, within 7 days of receiving it.

The effect of this amendment to applicants is that they have been saved from these recurring costs that have discouraged many from applying for jobs that make clearance certificates a shortlisting prerequisite. They have also been saved from missing out on opportunities for failing to submit clearances because of delays by the issuing entities. On the other hand, employers face the risk of incurring additional recruitment costs where a candidate is rejected for failing to meet the requirements. Nevertheless, employers will be required to amend their policies and practices to incorporate the new provisions.

This alert is for informational purposes only and should not be taken to be a legal opinion. If you have any queries or need clarification on labour and
employment law, contact us on

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