President William Ruto announced a 12 per cent increase in general wages and a 15 per cent rise in agricultural wages for Kenyan workers.
Speaking during Labour Day celebrations held in Vihiga County on Friday, Ruto said the move is aimed at improving workers’ livelihoods across the country.
“I am pleased to announce a 12% increase in general wages and a 15% increase in agricultural wages to all Kenyan workers. Happy Labour Day and may we continue building this nation together for this and future generations as we strive to transform Kenya into a developed economy within our lifetime,” said Ruto.
In addition to the wage increment, Ruto also announced a new government-backed healthcare arrangement targeting public servants.
“The government has initiated an agreement that will ensure a zero co-payment, walk-in-walk-out experience for all teachers and public officers,” he added.
The announcement comes a day after the Federation of Kenya Employers rejected calls for a higher wage increase, urging the government to cap any adjustment at no more than five per cent.
FKE warned that such a move would represent a significant policy shift requiring broad stakeholder consultation and careful assessment due to its far-reaching implications.
The federation argued that a sharp wage increase could drive up the cost of doing business at a time when global economic pressures are already straining employers, particularly small and medium-sized enterprises.
FKE also called for tax relief measures targeting low-income earners, alongside structural reforms aimed at reducing the cost of doing business and supporting enterprise sustainability.
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