William Ruto announced a 12% increase in minimum wages for Kenyan workers and a higher 15% rise for agricultural labourers on Thursday, as the government moves to cushion households against rising living costs.
The directive, unveiled during Labour Day celebrations in Vihiga County, follows sustained lobbying by unions, including the Central Organisation of Trade Unions (COTU), which has called for wage adjustments amid higher prices for essential goods such as food, fuel, and housing.
“I am pleased to announce a 12 per cent increase in general wages and a 15 per cent increase in agricultural wages,” Ruto said in an address to workers and union leaders.
The general wage increase will apply across most sectors of the economy, while the larger adjustment targets farm workers, a key segment of Kenya’s labour force. The changes are expected to raise minimum earnings for millions of workers in both formal and informal employment.
However, business groups have cautioned that higher wage bills could add strain to companies grappling with elevated operating costs. The Federation of Kenya Employers (FKE) has warned that some firms remain under pressure from taxation and economic headwinds, with some facing restructuring or closure.
FKE Chief Executive Jacqueline Mugo said last month that while a wage review was due the last adjustment was made two years ago policymakers should strike a balance between worker welfare and business sustainability.
Ruto said his administration would work with unions, employers, and the labour ministry to ensure compliance with labour laws and strengthen enforcement.
He also pointed to progress in adopting international labour standards, saying Kenya’s National Labour Board had completed steps toward ratifying conventions of the International Labour Organization on domestic workers’ rights and the elimination of workplace violence and harassment.
