Kenya formalises 12 percent minimum wage increase for workers

Labour Cabinet Secretary Alfred Mutua signed legal notices on May 7 effecting a 12 percent rise in general minimum wages and 15 percent for agricultural workers. The move follows President William Ruto's Labour Day announcement and aims to address rising living costs.

The government has formalised wage adjustments for Kenyan workers across sectors. Mutua stated that the notices align with the May 1 directive and have been sent to the Attorney General’s Office for gazetting.

Mutua noted the changes will guide private and public employers in updating payrolls and salaries. He gave an example of a Ksh50,000 earner gaining Ksh6,000 to reach Ksh56,000.

Reactions remain divided. The Federation of Kenya Employers indicated adjustments apply only to minimum wages under existing laws. In contrast, the Central Organisation of Trade Unions maintained the increase covers general wages and will apply once gazetted.

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President Petro addresses a lively rally supporting Colombia's 23.7% minimum wage increase, as business leaders warn of job losses amid government suspension.
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Government defends 23.7% minimum wage increase after suspension

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The Council of State provisionally suspended the decree setting a 23.7% minimum wage increase for 2026, but the government and labor representatives seek to maintain it. President Gustavo Petro called for a national mobilization on February 19 to defend the vital wage. Fenalco warned of risks to over 700,000 formal jobs.

President William Ruto announced a 12% general wage increase and 15% for agricultural workers during Labour Day celebrations in Vihiga on May 1, 2026. The hike raises the minimum wage to Sh4,363.31 for lower-level workers. The move has sparked optimism among employees despite falling short of union demands.

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Three days after President William Ruto's Labour Day announcement of a 12% wage increase for all workers and 15% minimum wage hike for agricultural sector employees, workers must wait for legal steps before changes take effect in payslips.

In an update to its February provisional suspension of Colombia's 23.7% minimum wage increase for 2026, the Council of State dismissed government appeals, keeping the original decree suspended but maintaining the transitory increase via Decree 159 of 2026. Labor Minister Antonio Sanguino affirmed the measure's continuity pending a final merits ruling.

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The government has outlined new conditions that must be fulfilled before implementing its planned reductions in key taxes, including Pay As You Earn (PAYE), Value Added Tax (VAT), and income tax, as it seeks to balance fiscal sustainability with taxpayer relief. The policy shift comes nearly three weeks after assurances from President William Ruto and Treasury Cabinet Secretary John Mbadi that the administration was committed to lowering major taxes to ease the cost of living. Treasury Principal Secretary Chris Kiptoo stated that the tax reduction plans will depend on the expansion of the tax base.

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