This study investigated the influence of laissez-faire leadership on labor turnover within Kenyan parastatals, using the Postal Corporation of Kenya (PCK) as a case study. A descriptive research design was adopted, utilizing a census sampling technique to collect data from all 96 employees of PCK’s Eastern Region through structured questionnaires. Data was analyzed using both descriptive and inferential statistics with the Statistical Package for Social Sciences (SPSS) version 25. The findings revealed that laissez-faire leadership was prevalent, characterized by limited supervisory monitoring, passive involvement in daily operations and delayed intervention in conflicts. These practices created an environment of role ambiguity and perceived managerial neglect. Correlation and regression analyses confirmed a significant positive relationship between laissez-faire leadership and labor turnover, indicating that its prevalence directly contributed to increased employee exit intentions and actual turnover. The study concludes that the hands-off approach inherent in laissez-faire leadership is detrimental to employee retention in structured public sector environments like PCK. It recommends that parastatals actively discourage leadership disengagement by promoting active supervision, timely feedback and greater managerial accountability to mitigate staff attrition and enhance organizational stability.