President William Ruto has announced a 12 per cent increase in minimum wages for Kenyan workers, alongside a higher 15 per cent increment for agricultural labourers, in a move aimed at cushioning workers against the rising cost of living.
The announcement, made during the 2026 Labour Day celebrations held in Vihiga County, marks one of the key highlights of this year’s national event, which brought together government officials, labour leaders and workers from across the country.
Speaking during the celebrations, President Ruto said the decision followed consultations with workers’ representatives, particularly the Central Organisation of Trade Unions (COTU), who had been pushing for wage adjustments amid increasing economic pressure.
“I am pleased to announce a 12 per cent increase in general wages and a 15 per cent increase in agricultural wages to all Kenyan workers,” the President said.
The directive means that millions of workers across both formal and informal sectors will see an increase in their earnings, with the agricultural sector receiving a higher boost due to its critical role in the country’s economy.
The Head of State noted that the wage review is intended to improve workers’ welfare, as many households continue to struggle with the high cost of essentials such as food, fuel and housing.
COTU Secretary General Francis Atwoli welcomed the move, noting that labour unions have consistently called for better pay to match the rising cost of living. He expressed optimism that the increase would offer some relief to workers across various sectors.
However, employers have previously expressed concerns over wage adjustments, warning that sharp increases could place additional strain on businesses, especially small and medium enterprises still recovering from recent economic challenges.
Federation of Kenya Employers (FKE) Chief Executive Officer Jacqueline Mugo had earlier cautioned that while wage reviews are necessary, there is a need to strike a balance between supporting workers and sustaining businesses facing high operational costs, taxation and market uncertainties.
Despite these concerns, President Ruto assured workers that the government remains committed to protecting their rights and improving working conditions. He said the government will continue working closely with COTU, FKE and the Ministry of Labour to ensure labour laws are fully implemented and enforced.
In addition, the President announced progress in strengthening worker protections through international frameworks, revealing that the National Labour Board has completed the adoption process of key International Labour Organisation conventions.
These include agreements focused on promoting decent work for domestic workers and eliminating violence and harassment in the workplace, signalling a broader commitment to improving labour standards in the country.
As the new wage directive takes effect, attention now shifts to its implementation and the impact it will have on both workers and businesses across Kenya.
