President William Ruto announced a 12 per cent wage increase for all workers on May 1, 2026. Employees expecting immediate changes in May payslips will have to wait. The announcement requires several legal steps before becoming binding.
President William Ruto announced a 12 per cent wage increase for all workers and a 15 per cent minimum wage increment for agricultural sector workers during Labour Day celebrations on May 1, 2026. Employees had anticipated seeing the changes in their May payslips.
However, the announcement signals government intent but is not yet legally enforceable. It must first be formally published in the Kenya Gazette to become binding. After gazettement, employers and labour unions must negotiate how the increase applies, including whether it affects basic salary, allowances, or both.
"Unions and employers must agree on how and where the 12 per cent is applied including whether it affects basic pay, allowances, or both," the report explains.
Central Organisation of Trade Unions (COTU) Secretary General Francis Atwoli clarified over the weekend that the increase is a general wage hike for all Kenyan workers, not just a minimum wage adjustment. “The President was clear. This is a general wage increase for all Kenyan workers. It is not restricted to minimum wage earners as some employers are suggesting,” Atwoli said. He urged the Federation of Kenya Employers (FKE) to recognize it as such.
