On May 1, 2024, during the National Labour Day celebrations, His Excellency Dr. William Samoei Ruto, President of the Republic of Kenya, called for an increase in statutory minimum wages of at least 6%. In response, the Federation of Kenya Employers (FKE) advocated for the proper review process, emphasizing the need to operationalize the relevant Wages Councils constitutionally.
We are pleased to report that three Wages Councils, the General Wages Council, the Agricultural Wages Council, and the Seafarers Wages Council—have been constituted and gazetted.
On September 25, 2024, the General and Agricultural Wages Council convened to discuss the minimum wage review. While COTU (K) proposed a 26.3% increase and the government suggested 15% to offset inflation, FKE urged limiting the increase to a maximum of 6%, in line with the President's recommendation.
FKE also advocated that the 6% increase should not be applied retrospectively and requested one month for employers to adjust payrolls. We are pleased to announce that our position was adopted, and the Cabinet Secretary for Labour and Social Protection has gazetted the new minimum wage order. The 6% statutory minimum wage increase will take effect on November 1, 2024, rather than on May 1, 2024, as initially demanded. This outcome represents a win-win for Kenya's workers, the government, and employers.