EMPLOYMENT CONTRACT

JOSEPH CHARAGU
 CONTRACT OF EMPLOYMENT

This Agreement made as of the ….. day of …………. 2021 and the provisions of the
Employment Act, 2007, Laws of Kenya,
BETWEEN:
KENYA PORTS AUTHORITY (K.P.A) a limited liability company incorporated in the
Republic of Kenya and whose address is, Mayfair Business Center, P.O. Box 95009-80104,
Mombasa (hereinafter referred to as “the Employer”) OF THE FIRST PART
AND:
JOSEPH CHARAGU of ID Number (ENTER ID NO) and of P.O. Box Number 00-00000
Nairobi, Kenya. (Hereinafter referred to as “the Employee”)

WHEREAS the Employee and the Employer wish to enter into an employment agreement
governing the terms and conditions of employment;

THIS AGREEMENT WITNESSETH that in consideration of the promises and mutual

covenants and agreement hereinafter contained and for other good and valuable consideration
(the receipt and sufficiency of which is hereby acknowledged by the parties hereto), it is agreed
by and between the parties hereto to the following terms and conditions:

1. DEFINITIONS
In this Contract, unless the context otherwise requires:-
1.1 “Appointment” means the term of the contract of service hereby created, the duration of
which ascertainable in accordance with this Contract;
1.2 “Basic Salary” means the amount specified as such in the current Remuneration
Contract;
1.3 “Commencement Date” means 1st of October 2021;
1.4 “Normal Retirement Date” means the date when the Employee attains the age of sixty
(60) years;
1.5 “Party” means either the Employer or the Employee;
1.6 “Parties” means both the Employer and the Employee.

2. TERMS OF EMPLOYMENT
The employment of the Employee shall commence on the ……. day of ……, 2021 for a term of
one year with an option of renewal and/or continue until terminated in accordance with the
provisions of this agreement.

3. DUTIES OF THE EMPLOYEE

The Employee shall carry out the normal duties of an Accountant for the Employer as per the
job description, as may be assigned by the Employer and as described below.

pg. 1
These duties and responsibilities may be amended from time to time at the sole discretion of the
Employer, subject to formal notification of same being provided to Employee. The duties and
responsibilities of the Employee shall be subscribed under Appendix 1 of the agreement.

4. PLACE & HOURS OF WORK

The place of work shall be KENYA PORTS AUTHORITY Offices, Mombasa, Kenya, however
the same does not exclude the employee to work remotely upon authorization of the employer.

The Employee shall observe the standard working hours of the company. The company expects
that the Employee to execute his/her duties and responsibilities within the normal working hours
in the context of Kenya Ports Authority (i.e. morning and night shifts).
Public Holidays: The Company may require you to work on a public holiday due to the nature of
the Company’s business.
Public Holidays shall be those as may be gazetted by the Government of Kenya.
In the event the Employer requires the Employee to work in another country, client site or
location, the place of work shall be the place the Employee has been assigned to perform his
duties by the Employer.
The Hours of work shall be the hours of work at the Place of work

5. PROBATION
The Parties hereto agree that the initial six (6) month period of this agreement is ‘probationary’
in the following respects:
2. the Employer shall have an opportunity to assess the performance, attitude, skills and
other employment-related attributes and characteristics of the Employee;
3. the Employee shall have an opportunity to learn about both the Employer and the position
of employment;
4. the Employer may, upon expiry of the probationary, confirm employment in writing and
stipulate the date on which continuous employment shall begin; and
5. either party may terminate the employment during the initial six (6) month period with
two weeks’ notice, in which case there will be no continuing obligations of the parties to
each other, financial or otherwise.

6. COMPENSATION
6.1 Salary
In consideration of the services provided by the Employee, during the term of his employment,
his basic salary at the commencement of his employment shall be. KES 99,628.00 (Gross) a
month and will be subject to all the statutory deductions in force.

6.2 Benefits
The Employer shall provide the Employee with Medical Insurance Cover. The medical
allowance shall be subject to the Medical Insurance Cover provider and Company handbook.

pg. 2
 6.3 Reimbursements and Expenses for Travel on Duty
The scope of work may require the Employee to work outside K.P.A’s Office. In the event of
such, the Employee’s right to any reimbursements shall be governed by the provisions contained
in the Company Handbook.

7. TERMINATION OF EMPLOYMENT
The Employer may terminate the employment of the Employee at any time by:
7.1 Mutual agreement
This Contract may be terminated by either party giving the other party one (1) months’ notice in
writing or by payment in lieu of notice.
7.2 Discharge for Cause
The Employee may terminate the employment due to a valid reason by giving One (1) month’s
written notice or salary in lieu of such notice. Subject to this, any dues and/or loans taken from
the Company must be settled before resignation.
In addition, the Employer may terminate this employment by way of summary dismissal due to
any of the reasons listed herein below:
i. the Employee commits a material breach of his obligations and duties, willfully
disobeys the lawful orders and instructions of the Company or is absent from his
duties without leave; or
ii. the Employee is or becomes intoxicated at work; or
iii. insubordination by the Employee; or
iv. employee willfully neglects to perform any work which was his duty to perform, or if
he carelessly and improperly performs any work which from its nature it was his duty
under his contract to have performed carefully and properly; or
v. the Employee becomes abusive and/or violent to the employer or other employees; or
vi. dishonesty that amounts to gross misconduct as decided by the employer; or
vii. gross misconduct or gross dereliction of duty by the Employee; or
viii. fraud, misrepresentation or other acts of moral turpitude or criminal conduct by the
Employee; or
ix. the Employee shall become bankrupt or be guilty of any grave or willful misconduct
which in the opinion of the Employer has injured or is likely to injure the Employer
or its business; or
x. a medical officer of or acting on behalf of the Employer should verify that the
Employee is by reason of ill health or injury incapable of rendering further
satisfactory services to the Employer; or
xi. a material breach by the Employee of any term of this agreement.
The Employer shall observe all company procedures as outlined in the Company handbook prior
to summarily dismissing an Employee.

8. LEAVE
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 8.1 Annual Leave
On completion of every Twelve (12) months of service, the Employee shall be entitled to a paid
leave of Twenty-One (21) days. The leave entitlement shall accrue for the period worked and the
notice period, in case of termination, shall not be included for the purposes of calculating the
leave. Leave may not be accumulated and if not taken during the year in which it is due, the days
shall be forfeit and compensation given to the Employee accordingly.

8.2 Sick Leave

The Employee who falls sick and is unable to carry out his duties by reason of illness for which
he is not in any way at fault shall be entitled after two consecutive months of service with the
Company, to sick leave of seven (7) days with full pay, and thereafter to sick leave of seven days
(7) with half pay in each period of twelve months of consecutive service, subject to production of
a certificate of incapacity to work signed by a duly registered medical practitioner. An employee
is not entitled to claim for any extra payment as a result of not using up his sick leave.

8.3 Maternity & Paternity Leave

A female Employee shall be entitled to three (3) months maternity leave with full pay. On expiry
of a female Employee’s maternity leave, the Employee shall have the right to return to the job
which she held immediately prior to her maternity leave or to a reasonably suitable job on terms
and conditions not less favorable than those which would have applied had she not been on
maternity leave.
Where the maternity leave has been extended with the consent of employer, or immediately on
expiry of maternity leave before resuming her duties a female Employee proceeds on sick leave
or with the consent of the Employer on annual leave, compassionate leave, or any other leave,
the three (3) months maternity leave shall be deemed to expire on the last day of such extended
leave.

8.4 Paternity Leave

A male Employee shall be entitled to two (2) weeks paternity leave with full pay.

8.5 Notification of sickness

Should the Employee be in a position where he is unable to attend work due to sickness and his
absence has not previously been duly authorized, he must inform his manager of the fact of his
absence and the full reasons for it as soon as is reasonably practical. The Employee shall be
required to provide a medical certificate proving the reason for his absence.
Immediately following the Employee’s return to work after a period of absence which has not
previously been authorized by his manager, he is required to complete a self-certification form
stating the dates of and the reason for his absence, including details of sickness on non-working
days as this information is required by the company for calculating statutory sick pay
entitlement. Self-certification forms will be retained in the company's records.

pg. 4
 8.6 Notification of any other absence
Should the Employee be in a position where he is unable to attend work for any reason and his
absence has not previously been duly authorized he must inform his manager of the fact of his
absence and the full reasons for it as soon as is reasonably practical.
Immediately following the Employee’s return to work after a period of absence which has not
previously been authorized by his manager, he is required to complete a self-certification form
stating the dates of and the reason for his absence as this information is required by the Company
for calculating annual leave balance. Self-certification forms will be retained in the Company's
records.
9. OTHER EMPLOYMENT
The Employee must devote the whole of his time, attention and abilities during the hours of work
for K.P.A to his duties for the company. He may not, under any circumstances, whether directly
or indirectly, undertake any other duties, of whatever kind, during the hours of work for the
company.
The Employee may not without the prior written consent of his manager, which will not be
unreasonably withheld, engage, whether directly or indirectly, in any business or employment
which is similar or in any way connected to or competitive with the business of K.P.A or which
could or might reasonably be considered by others to impair his ability to act at all times in the
best interest of the company outside the hours of work for the company.

10. NON-COMPETE CLAUSE

The Employee acknowledges that the Company is in a highly competitive industry and that his
leaving the Company to join a competing business would jeopardize the Company’s Client
Confidences, Confidential Information and client relationships. Accordingly, the Employee
agrees, subject to the provisions below, including those relating to payments that may be due to
the Employee, that during his employment with the Company, and for a period of three (3)
months after the date of termination of employment for any reason (the “Non-Compete Period”),
the employee will not directly or indirectly own, invest in, render any services or provide advice
to, or act as officer, director, employee, or independent contractor for, any person or entity that
competes with the Company in the products or services it offers to its clients including any
subsidiary or related company or related business of such person or entity. The Employee
acknowledges that given the nature of the business of the Company and the geographical market
of the Company combined with his role and responsibilities, the period of three (3) months is
reasonable.

11. NON–SOLICITATION CLAUSE

The Employee also agrees that for the one (1) year period following the termination of
employment for whatever reason, the Employee will not directly or indirectly (i.e., through a
third party, such as a colleague or recruiter) solicit, recruit, hire or seek to hire (whether on his
own behalf or on behalf of some other person or entity) any person who is at that time (or was

pg. 5
during the prior six (6) months) an employee, consultant or independent contractor of the
Company.

12. CONFIDENTIALITY

It is recorded that for the purpose of this agreement, confidential information shall mean and
include: any information of whatever nature, which has been or may be obtained by the
Employee from the Employer, whether in writing or in electronic form or pursuant to discussions
between the Parties, or which can be obtained by examination, testing, visual inspection or
analysis, including, without limitation, scientific, business or financial data, know-how,
formulae, processes, designs, sketches, photographs, plans, drawings, specifications, sample
reports, models, customer lists, price lists, studies, findings, computer software/s, inventions or
ideas, concepts, compilations, studies and other material prepared by or in possession or control
of the recipient which contain or otherwise reflect or are generated from any such information as
is specified in this definition.
Each Employee shall hold in confidence all confidential information received from the Employer
and Client/s, and shall not divulge the confidential information to any person, including any
other employee/s, except for those employees who are directly involved with the execution of
that relevant agreement.
Each Employee shall return to the company upon request and, in any event, upon the termination
of his employment, all documents and tangible items which belong to the company or which
contain or refer to any confidential information and which are in his possession or under his
control.
The Employee shall, if requested by the company, delete all confidential information from any
re-usable material and destroy all other documents and tangible items which contain or refer to
any confidential information and which are in his possession or under his control.

13. LIABILITY
Should the Employee’s conduct, actions or failure to act lead to any loss to K.P.A, monetary or
otherwise, the Employee shall bear the liability and the means to rectify the loss to the extent of
indemnifying K.PA.
It is recorded that for the purpose of this agreement, conduct shall include sabotage, conspiracy,
gross negligence, fraud and/or unlawful conduct; and while theses are only indicative examples,
they do not comprise an exhaustive list.

14. DISCIPLINARY ISSUES

14.1 Discipline
14.1.1 If in the opinion of the Employer any damage arises from any disregard or failure on
the part of the Employee to comply with any instructions or from any neglect of duty
whatsoever on his/her part, he/she shall be liable to a deduction from his/her salary to

pg. 6
 make good the damage or any part thereof. The Employer shall determine the amount
deductible, but it shall be fair and reasonable.

14.1.2 If the Employee after signing this Employment Contract neglects, or refuses, or
becomes unable to perform any of his/her duties or fails to comply with the rules and
regulations from any cause (excepting ill health not caused by his/her own
misconduct), the Employer shall terminate this Employment Contract forthwith and
all rights and advantages accruing to him/her by virtue of this Employment Contract
shall cease.

14.1.3 The employer shall investigate into the misconduct and while the Employer is still
investigating the Employee may be suspended from performing his/her duties until
the investigation is concluded.

14.1.4 The Employee is required to acquaint himself/herself with the disciplinary procedures
as laid down by the Employer. (See the Basics of Disciplinary Procedures and
Disciplinary Actions on Appendix 2). The Employee is required to read and
understand these procedures before signing this Employment Contract.

14.1.5 The Employee shall in all respects adhere to the terms and conditions of this
Employment Contract and so shall the Employer, failure to which this Employment
Contract shall be terminated by either side.

15. INTELLECTUAL PROPERTY RIGHTS

The Employee acknowledges that any and all of the Intellectual Property Rights including
trademarks, trade names, copyright and other rights used or embodied in or in connection with
the software/s, are and will remain the sole property of K.P.A.
The Employee acknowledges that intellectual property rights deriving from the work performed
by him, as an individual or in collaboration, throughout the duration of his contract and that are:
i. the result of the activities directly or indirectly of subject-matter of the contract or
related thereto,
ii. in execution of his duties, or
iii. under instruction of the Company, belong exclusively to the Company,
throughout the duration of these rights, for the maximum extent, in all
jurisdictions, for the maximum period of time permissible, in all modes of
exploitation and with the ability to subsequent assignment to third parties.
The Employee must guarantee his cooperation/assistance, without receiving additional
compensation, to that expressly and explicitly agreed upon in this agreement to the extent
required for the effectiveness of the rights of the Company including the signing and execution
of all such documents or the performance of all such acts necessary for the Company’s ability to
seek or obtain in any jurisdiction the registration of intellectual property rights outlined in this
Clause. The Employee shall abstain from any act that may, in any way, adversely affect the
attainment and preservation of such rights.
pg. 7
The Employee shall not cause or permit anything which may damage or endanger the
Company’s intellectual property or assist or allow others to do so.
The Employee shall not use the Company’s intellectual property except directly in the
performance of his contract of employment.

16. EQUIPMENT AND RESOURCES PROVIDED TO THE EMPLOYEE

The Employee must make his best efforts to look after all documents, equipment and materials
he may receive from the Company, and to preserve them in good condition.
The use of these tools shall be solely and exclusively for corporate and professional purposes, as
a work tool or instrument for the performance of the duties inherent to his work post.
Notwithstanding the above, it shall be considered acceptable for the Employee to use the said
tools for personal purposes, provided that such use is minimal and to the extent strictly
necessary. In any event, the Employee is not permitted to view, download, send or receive illegal
material or to save on the Company’s computer files that are not related to his employment
activities.

17. SEVERABILITY
Each paragraph of this agreement shall be and remain separate from and independent of and
severable from all and any other paragraphs herein except where otherwise indicated by the
context of the agreement. The decision or declaration that one or more of the paragraphs are null
and void under any enactment or rule of law shall have no effect on the remaining paragraphs of
this agreement and it is hereby agreed and understood that each party to this contract is fully
aware of his or her rights under the Employment Act in place for the time being.

18. NOTICE
Any notice required to be given hereunder shall be deemed to have been properly given if
delivered personally, Electronic Mail or sent by pre-paid registered mail as follows:
a. to the Employee: P.O Box Number 000-00000 Nairobi, Kenya. ENTER EMAIL
HERE
b. to the Employer: P.O. Box 95009-80104, Mombasa, Kenya. ca@kpa.co.ke
And if sent by registered mail shall be deemed to have been received on the 4 th business day of
uninterrupted postal service following the date of mailing. Either party may change its address
for notice at any time, by giving notice in writing to the other party pursuant to the provisions of
this agreement.

19. MISCELLANEOUS
The Employee shall be required to comply with all Company policies, ethics and rules and
regulations.
The Contract may only be amended or modified by virtue of a written document signed by or on
behalf of the Parties.
pg. 8
The Contract constitutes the entire agreement between the Parties in relation to its content and
revokes and replaces any previous contracts or agreements of any type, whether verbal or
written, in relation to its content between the Parties or previous job offer.

20. INTERPRETATION OF AGREEMENT

The validity, interpretation, construction and performance of this agreement shall be governed by
the Laws of Kenya. This agreement shall be interpreted with all necessary changes in gender and
in number as the context may require and shall ensure to the benefit of and be binding upon the
respective successors and assigns of the parties hereto.
This Contract shall be read and interpreted together with the Employee Handbook provisions.

IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed as of
the_______ Day of ___________________, 2021.

Signed by
(Full Names of Employee): JOSEPH CHARAGU

Signature:

Date:

Signed by and sealed with the Seal of KENYA PORTS AUTHORITY

(Full Names) DIRECTOR

Signature: Date:

(Full Names) DIRECTOR

Signature: Date:

on behalf of the KENYA PORTS AUTHORITY

In the presence of:

Name:

Address:

Title:

Signature:

Date:

pg. 9
 APPENDIX 1
ROLE AND RESPONSIBILITIES

1. Accurately perform daily reconciliations of bank transactions, petty cash, cheque and

credit card transactions.

2. Prepare monthly payroll returns, manage statutory deductions and reconcile the tax

ledgers.

3. Maintaining accounts receivable and accounts payable.

4. Match all supplier invoices and delivery notes/job cards received with the corresponding

LPOs.

5. Ensure the finance and accounting policies and procedures are adhered to.

6. Preparing accounts for annual audits and working with external auditors.

7. Preparing payment vouchers in accordance with the laid down rules and regulations;

8. Entering primary data and balancing of cashbooks, imprest and advances ledgers;

9. Issuing receipts for inward payments;

10. Preparing and updating creditor ledgers;

11. Preparing and updating debtors’ ledgers;

12. Processing Imprest /travel advances and following up on surrenders;

13. Making petty cash payments and reimbursements after receipt of approvals;

14. Undertaking bank deposits and cash withdrawals;

15. Providing safe custody of records and assets under him/her;

16. Writing cheques and posting payments and receipting vouchers in the cash books;

17. Paying staff claims as per the approval;

18. Preparing and filling records on payments/cash receipts

pg. 10
 APPENDIX 2
DISCIPLINARY PROCEDURES AND ACTIONS

The Employee shall abide by the laid down rules and procedures and any deviations from the
expected behavior shall render the Employee liable to disciplinary actions as follows:

Any of the following matters may amount to Gross Misconduct and therefore justify Summary
dismissal of an Employee, which shall constitute a lawful dismissal:
i. Absence from work station without lawful cause or express permission of the immediate
supervisor (72 hours).
ii. Being intoxicated either by alcohol or drugs and an Employee rendering himself/herself
unwilling and or incapable of properly performing his/her work.
iii. An Employee wilfully neglects to perform his/her work which is his/her duty to perform
or carelessly and improperly performs any work which from its nature it was his/her duty
under this Employment Contract.
iv. An Employee uses abusive or insulting language or behaves in a manner insulting to
his/her Employer or to a person in authority over him/her by his Employer.
v. An Employee knowingly fails or refuses to obey lawful and proper command, which was
within the scope of his/her duty to obey, issued by the Employer or a person placed in
authority over him by his/her Employer.
vi. An Employee is arrested under any written law for any offence punishable by
imprisonment and the Employee is not within ten (10) days either released on bail or
bond or otherwise set free.
vii. An Employee convicted by a court of law of an offence directly connected with the
Employee's duties for which he/she is punished with a term of imprison or which reflects
adversely on the honesty or moral integrity of the employee.
viii. An Employee knowingly misappropriates/defrauds, and or steals from the Employer.
ix. An Employee improperly discloses information about the affairs of the Employer.
x. An Employee sleeps on duty, when he/she is supposed to be working thereby
endangering the safety of others.
xi. An Employee is dishonest in the course of his/her duties.
xii. An Employee who is greatly indebted.
xiii. Fighting and assault or engaging in riotous and or unlawful strikes.
xiv. Harassment of other and female workers.

The list given above forms the basis of disciplinary procedures. In all cases where a serious
offence has been committed the Employer shall give consideration to dismissal action with loss
of all privileges as an appropriate disciplinary action.

pg. 11
 GENERAL RULES FOR CONDUCT

Except for situations defined above under Disciplinary offences that constitute gross misconduct
punishable by summary dismissal, breaking the following rules shall amount to misconduct and
dismissal may follow Final Warning.

a) Punctuality

An employee who is perpetually late for his duties, thereby failing to observe working
hours.

b) Refusal to take alternative duties

An employee who refuses to take alternative duties as instructed by his/her seniors.

c) In none performance of duties

In a case where an Employee fails to meet the set targets.

d) frequent absence from duty without permission

in a case where an Employee frequently absents himself/herself from duty without

express permission from immediate supervisor or lawful cause.

e) Private interests and private activities

An Employee engages in private interests and private activities that conflict with his/her
official duties at Kenya Ports Authority.

The list is not exhaustive; many more instances may be included as time goes by.

pg. 12
 DISCIPLINARY PROCEDURES
Except where the offence warrants summary dismissal, the disciplinary procedures will demand
that a Warning system be followed as follows:

1. First Warning

1. Where the offence committed is not serious, but the offender needs to know the
views of the Management, such an offender will be given a verbal warning by
immediate supervisor. A note will be made on the file that a Verbal Warning was
given. The note will be dated.

2. If the offence is serious the Employee will be served with a First Written Warning,
which will state the details of the offence.

2. Second Warning

If the Employee does not heed the First Warning and commits an offence similar to the
first one, that warranted the First Warning, such an Employee will be served with a
Second Warning.
3. Third and Final Warning

An Employee who refuses to heed First and Second Warning will be served with the
Third and Final Warning. Should such an Employee fail to heed the Third and Final
Warning, the Employee will be liable to Dismissal without further reference to him/her.

pg. 13
 SALARY BREAKDOWN

Name: JOSEPH CHARAGU

Title: POSITION

Department: E.G ACCOUNTS

Basic Salary Range (Per Month): __Ksh. 99,628.00_________________

We are pleased to confirm the following salary as per contract, effective __________

Salary Per Month Kshs

DEDUCTIONS FOR SALARY
DESCRIPTION AMOUNT (KSHS)
GROSS PAY 99,628.00
NSSF 1,080.00
Total Deduction 24,627.75
NHIF 1,600.00
PAYE 21,947.75
NITA 50.00
PERSONAL RELIEF 2,400.00
NET PAY 75,000.25

All above is subject to applicable tax deductions instituted by the Kenya Revenue Authority of
Kenya.

Yours Sincerely,

KENYA PORTS AUTHORITY

pg. 14