Kenyan workers are set to see a new deduction on their paychecks if a proposed workers’ compensation bill becomes law.
The Workers’ Compensation Fund Bill 2024 aims to establish a mandatory government-run fund to provide benefits for employees who suffer work-related injuries or illnesses.
Under the draft legislation, all employers in both the private and public sectors would be required to contribute a percentage of their workers’ wages to the new Workers’ Compensation Fund.
The bill states that the fund’s sources will include “employers’ mandatory contributions” as well as government appropriations and other revenue streams.
“The objectives of this Act shall be to provide for adequate and equitable compensation for employees who suffer occupational injuries or contract occupational diseases,” the bill outlines. It also seeks to establish a framework for “the effective, prompt and empathetic consideration, settlement and payment of compensation benefits.”
The proposed legislation would apply broadly, covering all workers including those employed on a contract basis or temporary deployment. However, it would exclude members of the Kenyan Defence Forces.
“Any reference in this Act to worker who has been injured shall, when the worker is dead, include a reference to the worker’s representative or dependants or to any other person to whom or for whose benefit compensation is payable,” the bill states.
“This Act shall apply to employers in all private and public sectors, including cooperatives, clubs, groups or any association of persons,” the legislation reads.
The Workers’ Compensation Fund Bill 2024 is currently out for public participation before being considered by Kenya’s parliament. If passed into law, the new payroll deduction could have significant implications for both employees and employers across the country.
