President William Ruto at the Labour Day celebrations in Chavakali, Vihiga.
The minimum monthly wages of workers will rise by up to Sh4,363.31 in line with changes announced by President William Ruto during Friday’s Labour Day fete.
President Ruto announced a 15 percent increase in the basic minimum wages for workers in the agricultural industry and a 12 percent rise for urban workers in other sectors of the economy.
“In recognition of the sacrifice, resilience, and immense contribution of our workers to the growth and stability of our economy, I am pleased to announce a 12 percent increase in general wages and a 15 percent increase in agricultural wages,” said President Ruto during the Labour Day address in Vihiga.
The changes, when effected, will see general labourers, including cleaners, sweepers, gardeners, house servants, day guards, and messengers get a rise of between Sh1,031.58 and Sh4,363.31. Kenya's minimum wage varies by sector and location, covering about 45 separate categories.
The increment fell short of the 23 percent that the Central Organization of Trade Unions (Cotu-K) Secretary-General Francis Atwoli was pushing for, amidst opposition from the Federation of Kenya Employers (FKE), which proposed an increment of not more than five percent.
President Ruto appeared to strike a middle ground by approving a more modest adjustment to appease both Cotu and FKE. The President’s previous increment was in 2024 at six percent.
Employee unions were pushing for pay rises to improve workers’ welfare, but FKE was opposed to the proposal, urging the State to first fix structural challenges in the economy, including delays in processing tax refunds and settling bills when firms trade with government entities.
Under President Ruto’s announcement, workers who will see the highest rise, in absolute terms, will be grade I artisans, cashiers, drivers of heavy commercial vehicles, and salespersons working within cities - Nairobi, Mombasa, Kisumu, Nakuru, and Eldoret. Their minimum pay will rise by Sh4,363.31 to Sh40,724.23 from the current allowed minimum of Sh36,360.92.
In the agricultural sector, the smallest rise in absolute terms will go to unskilled employees at Sh1,200 to Sh9,197 a month, while the highest beneficiaries will be drivers of lorries and cars with a rise of Sh1,758 to Sh13,477.
Outside the agricultural sector, the minimum legal pay is usually pegged on location, with those working within cities getting a higher pay compared with those working within the former municipalities and town councils of Mavoko, Ruiru, and Limuru. Those working in all other areas get less.
General labourers, including cleaners, sweepers, gardeners, children’s ayahs, house servants, day watchmen, and messengers within cities, will see a Sh1,933.65 increment to a minimum pay of Sh18,047.40 a month.
Miners, stonecutters, turn boys, waiters, cooks, night watchmen, machine attendants, bakery workers, and tailor assistants working in areas outside cities, former municipalities, and town councils will be on the list of those whose minimum pay rise will be below Sh2,000.
The minimum pay of general labourers, including cleaners, sweepers, gardeners, child carers, house servants, day guards, and messengers outside cities, former municipalities, and town councils will be Sh9,628.07 from the current Sh8,596.49.
The pay rise may be bad news for machinists, shoe upper preparers, chaplis makers, vehicle service workers at petrol and service stations, bakery plant hands, laundry operators, junior clerks, and wheeled tractor drivers in cities since their minimum pay will rise from Sh23,350.21 to Sh2,501.81, ushering them into the Pay-as-you-earn tax band.
Other categories of workers whose minimum pay will cross into the taxation band are pattern designers and storekeepers in former municipalities, where the lowest wages will jump to Sh25,412.61 from Sh22,689.83.
Grade III artisans, tailors, and drivers of medium-sized vehicles in towns outside cities and former municipalities will also enter the taxation band as their minimum pay crosses the Sh24,000 threshold, which is the maximum that workers in Kenya can draw without tax.
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