Ruto Announces 12% Minimum Wage Increase for Workers: What It Means

President William Ruto has announced an upward revision of minimum wages for Kenyan workers, marking one of the key policy announcements during this year’s Labour Day commemorations held in Vihiga County.

The Head of State made the declaration while presiding over the 60th Labour Day celebrations at Chavakali Boys High School.

In his address, he confirmed differentiated increases across sectors.

“I am pleased to announce a 12 per cent increase in general wages and a 15 per cent increase in agricultural wages to all Kenyan workers,” President Ruto announced.

The announcement follows sustained pressure from labour representatives, particularly the Central Organisation of Trade Unions (COTU), which has consistently argued that earnings have lagged behind the rising cost of living.

COTU Secretary General Francis Atwoli had previously pushed for a more aggressive upward revision.

“If you grant workers at least a 23 per cent minimum wage increase, your government will remain stable. Former President Kibaki offered wage increases of 22 per cent, 18 per cent, and 14 per cent, and things worked well. I believe you can do even more,” Atwoli stated.

New directive now places the general economy-wide adjustment at 12 percent, while agricultural workers, often among the lowest paid, receive a 15 percent boost.

Employers Warn of Cost Pressures

Despite the announcement, employer bodies have previously raised concerns about the economic implications of wage hikes.

The Federation of Kenya Employers (FKE) has cautioned that many businesses remain financially strained following prolonged economic shocks.

FKE Chief Executive Officer Jacqueline Mugo noted in an earlier briefing on April 24, 2026, that firms continue to face structural pressures.

“As a federation of Kenyan employers, we are aware that the last review for minimum wage increases was done two years ago,” she stated.

“But we are also aware that businesses are struggling, and we will be appealing to the government to balance the interests of businesses and the interests of employees,” she added.

Housing Program Modifications

Apart from wages, another significant announcement made by President Ruto on Labour Day is concerning adjustments made to the Affordable Housing Program.

This includes a cut in the deposit required to be paid before receiving a house from 10 percent to 5 percent.

Additionally, President Ruto made it clear that anyone earning salary will qualify based on the “one ID, one home” concept.

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Skills Development and Training

In addition to the aforementioned measures, President Ruto talked about how the government is working towards formalising the construction labor market.

This is being implemented through institutions such as the National Industrial Training Authority and the National Construction Authority.

According to the Head of State, more than 2,000 artisans, including 180 women, have already been certified under the Recognition of Prior Learning programme, signalling a shift toward formal acknowledgment of informal sector expertise.

Also Read:Ruto Announces New Rewards for Athletes, Including Ksh 5 Million for Record Breakers [Full Details]

Labour Rights and International Conventions

Ruto also confirmed Kenya’s completion of ratification for International Labour Organisation Conventions No. 189 and No. 190, which address decent work standards for domestic workers and protections against workplace violence and harassment.

He pointed out that the Ministry of Labour is putting into place the legal instruments needed to be presented to the Cabinet in accordance with the provisions of the Treaty Making and Ratification Act.

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