When Can the Corporate Veil be Lifted to Hold Company Directors Accountable?
In Kenya, the corporate veil can shield directors from personal liability, but persistent mismanagement—especially non-remittance of PAYE, NHIF/SHIF, and NSSF—can pierce that shield. This piece explores when veil-piercing applies, how it fits within the Companies Act, Insolvency Act, and Employment Act, and what workers can expect when the veil is lifted
Explainer: When an Employer Deducts but Won’t Remit: What Kenyan Employees Can Do?
When PAYE, NSSF, SHIF/Housing Levy deductions or earned salaries and severance are not remitted, Kenyan employees have recourse. Regulators like KRA, NSSF, and the Labour Office can pursue personal liability for unremitted funds, with potential criminal charges for deliberate non-remittance.
What the Employment Act 2007 Says About Redundancy Terminations
Section 40 the Employment Act 2007 lays the framework to prevent arbitrary layoffs and protect union rights. This piece explains when redundancy counts as termination, the required notice period, fair selection criteria (seniority, skill, reliability), respect for collective agreements, and the minimum severance of 15 days’ pay per year of service. It also highlights employer obligations, and the consequences of improper redundancy planning.