“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,” President Ruto announced.
He noted that the wage adjustment was intended to improve the welfare of workers amid the rising cost of living, which has affected households across the country in recent months.
According to the directive, the 15 per cent increment will specifically apply to workers in the agriculture sector, while the 12 per cent increase will cut across most sectors of the economy.
This will effectively raise minimum earnings for millions of workers in both formal and informal employment.
The announcement was made during national celebrations that brought together government officials, labour leaders, and workers from different parts of the country to mark Labour Day, which is observed annually to honour the contribution of workers to national development.
COTU Secretary General Francis Atwoli has for years been advocating for wage reviews, arguing that the cost of basic commodities such as food, fuel, rent, and transport has significantly increased, putting pressure on workers’ incomes.
The union has consistently pushed for salary adjustments to match inflation and improve the purchasing power of employees across various sectors.
However, even as the government moved to implement the wage increase, employers have previously raised concerns about the potential impact on businesses.
They warned that such increments could strain operations, particularly for small and medium-sized enterprises that are still recovering from economic challenges.
Business representatives have argued that while wage increases are important for workers’ welfare, they should be balanced with productivity and the ability of firms to sustain payroll costs without risking job cuts or closures.