The Labour Day wage increase this year came in two percentages: 15% and 12%. President Ruto announced the two rates at the Vihiga Labour Day celebrations on May 1st, 2026.
Although the announcement seemed to please many workers in attendance, it has now become a source of controversy. July is here and workers expect to see positive changes in their payslips, yet many may be disappointed.
As it were, COTU and FKE have different notions of what the announced general wage increase meant. While COTU says that every employee is entitled to a 12% wage increment, FKE places the 12% under minimum wage.
FKE’s translation means that employees will not benefit from what Francis Atwoli termed an increment to cushion everyone against inflation.
According to COTU Secretary General, the President adjusted the minimum wage only for agricultural workers. Hence, he gave them a 15% increase. Also, he added, these agricultural workers should again benefit from the 12% general wage increase meant for every employee.
Why the Labour Day Wage Increase is Controversial
Employers disagree with COTU that the May 12% wage increment was meant for every worker. Though termed “general” wage increase, the Federation of Kenya Employers (FKE) insists on placing it under minimum wage.
It is unlikely there is a language problem in understanding the May Day wage increment directive. Instead, there seems to be an issue of feasibility.
Reacting to the notion that every employee should receive a salary 12% higher, FKE cited the cost element. Through its CEO, Jackline Mûgo, FKE says the wage bill would be too big for businesses to accommodate.
Hence, FKE has advised its members to treat the 12% as a minimum wage increase. This means that only the lowest paid should benefit from it.
July is here: What now?
As for Atwoli, he possibly cannot retract his initial position without losing credibility. In May, he not only acknowledged the Labour Day Presidential pronouncements. He also elaborated how the 15% and 12% rates should be implemented.
He underlined that the President wanted the 12% wage increase to cushion every employee against inflation. Hence, the lowly paid employees in the agricultural sector should first receive a raise of 15%: minimum wage increment. Thereafter, they should receive the 12% general wage increase like all other employees.
Looking back, people may remember that Labour Day came at a time of heavy tension in the country. Kenyans were fed up with the high prices of diesel, petrol, and kerosene. Consequently, the 12% general wage increase seemed to quell some anti-government dissent.
Can the COTU Secretary General now concur with FKE without provoking workers? Can he purport to see things the employers’ way and risk causing a revolt among employees?
In short, what will Atwoli do? After listening to FKE’s argument, will he change tune and support its position? Or will he continue to stand by the promise he made to the Kenyan body of workers in May?