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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Treasury Cabinet Secretary John Mbadi reviewing PAYE tax relief documents in a government office
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Mbadi: PAYE tax relief proposal still under active consideration

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Treasury Cabinet Secretary John Mbadi has confirmed that the government’s earlier proposal to raise the PAYE tax-free threshold from KSh 24,000 to KSh 30,000 remains under consideration, despite its absence from the draft Finance Bill 2026.

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.

National Treasury Cabinet Secretary John Mbadi has reassured Kenyans that the proposed PAYE tax relief for low earners remains on track, even though it was omitted from the Finance Bill 2026.

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