President William Ruto has announced a sweeping wage adjustment for Kenyan workers, unveiling a 12 per cent general increase for workers and a higher 15 per cent rise for agricultural employees.
Speaking during the 2026 Labour Day celebrations in Vihiga County, President Ruto stated that the wage increment marks a major policy shift aimed at easing cost‑of‑living pressures for households across the country.
The wage review comes after months of sustained lobbying by labour unions, who argued that rising inflation and living costs had eroded workers’ purchasing power.
The new wage order is expected to boost disposable incomes for millions of employees in both urban and rural areas, with employers now required to adjust salaries in line with the prescribed increments.
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Days before the Labour Day celebrations, the Federation of Kenya Employers (FKE) had opposed calls for a significant rise in minimum wages, urging the government to cap any increment at no more than five per cent. Employers warned that steep wage hikes would raise the cost of doing business, particularly for Small and Medium‑Sized Enterprises (SMEs) already grappling with global economic pressures. Instead, FKE had called for targeted tax relief for low‑income earners and structural reforms to ease operational costs.
On the other hand, labour unions had intensified pressure for a much higher adjustment. The Central Organisation of Trade Unions (COTU) pushed for a wage increase of up to 23 per cent, framing the demand as necessary to cushion workers against rising living costs and restore purchasing power.
By settling on a 12 per cent general increase and a 15 per cent rise for agricultural workers, the government has sought to strike a balance between union demands and employer concerns. The announcement now sets the stage for the implementation of a new wage order in the coming months, with employers expected to comply.
By Masaki Enock
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