Labour Cabinet Secretary Alfred Mutua has signed legal notices to implement a 12 percent general wage increase and a 15 percent pay rise for agricultural workers, weeks after the commitments were announced by President William Ruto during this year’s Labour Day celebrations.
The Labour Ministry said the wage adjustments are intended to improve workers’ living standards, increase disposable income, and support economic growth as the country continues to grapple with the high cost of living.
In a statement issued on Thursday, Mutua confirmed that the legal notices had already been signed and forwarded to the Attorney General’s office for gazettement before implementation begins.
“I have signed two legal notices effecting a 12% increase in General Wages and 15% in Agricultural workers pay in line with Labour Day,” he said.
The Labour Cabinet Secretary explained that the revised wage structures will create new minimum wage rates across different sectors while also guiding employers in the private sector as they review salaries under their human resource policies.
“These adjustments set new minimum wages across various sectors and will guide the Private Sector as they review staff remuneration under their H.R. policies,” Mutua stated.
According to the ministry, the government expects the wage increase to go beyond improving employee welfare and also strengthen economic activity by increasing spending power among workers.
“This increase will put more money in the pockets of workers across the country. We expect it to boost consumer spending and accelerate economic growth,” he said.
The wage review follows announcements made by President Ruto during the 2026 Labour Day celebrations held in Vihiga County on May 1, where he declared a 12 percent increase in general wages and a separate 15 percent rise for agricultural workers.
During the celebrations, the President said the move was aimed at easing pressure on workers facing rising prices of basic goods and services.
“I am pleased to announce a 12 percent increase in general wages and a 15 percent increase in agricultural wages to all Kenyan workers,” President Ruto said during the celebrations.
The announcement came after sustained calls by Central Organisation of Trade Unions Secretary General Francis Atwoli for salary adjustments to help workers cope with increasing expenses on food, fuel, transport, and housing.
After the President’s declaration, questions emerged over whether the 12 percent increase applied only to minimum wage earners or extended to all workers across different salary levels.
Atwoli later clarified that the directive was a general wage increase and not only a review of the statutory minimum wage structure. He maintained that employees across different salary categories should benefit from the adjustment.
“There is a difference between minimum wage and a general wage increase,” Atwoli explained, maintaining that the adjustment applies broadly across sectors and salary brackets.
The clarification triggered disagreement with the Federation of Kenya Employers, which argued that government wage directives have traditionally applied to statutory minimum wages and do not automatically affect negotiated salaries or contractual earnings.
Despite the differing interpretations, the signing of the legal notices by the Labour Ministry is expected to provide formal guidance on how the wage adjustments will be implemented across sectors.
The agricultural sector received the highest increase at 15 percent amid continued concern over low pay for farm workers and the rising cost of living in rural areas.
Labour unions have welcomed the government’s decision, describing it as a response to the financial strain facing workers, while employers continue assessing the possible impact of the new wage structure on business operations and labour costs.
Attention is now shifting to the gazettement process and how employers in different sectors will apply the revised wage rates in the coming weeks.