President Uhuru Kenyatta on Sunday declared an increase of minimum wage by 12 percent effective Sunday, May 1.
This will see an increase in basic minimum daily wage from between 13, 572.90 shillings and 230, 627.45 shillings to between 15, 201.64 shillings and 258, 302.24 shillings for people living in Nairobi, Mombasa and Kisumu counties.
While addressing Kenyans during Sunday’s Labour Day celebrations at Nyayo Stadium in Nairobi, President Kenyatta said the decision was aimed at cushioning the country’s workforce against the rising cost of living owing to external economic factors.
For over three years, there has been no review of the minimum wages while the cost of living has increased with inflation ranging between 5 to 6 percent annually, the President said the Government has found it necessary to increase the minimum wages.
“In that regard, and in full appreciation of the critical contribution of workers to the economy; following the recommendation of various stakeholders; as a caring Government, we find that there is a compelling case to review the minimum wages so as to cushion our workers against further erosion of their purchasing power while also guaranteeing the competitiveness of our economy,” the head of state said.
In 2018, the president announced a five percent increase in the minimum wage, which saw the wages for the unskilled employee in the agricultural sector reviewed to between Sh6,736.30 and Sh7, 779.45 for herdsmen, watchmen, and stockmen.
The minimum wage in Kenya currently stands at 13,500 shillings since its last review in 2018.
Skilled and semi-skilled employees will see their minimum monthly wage rise from between 7, 689.85 shillings and 9, 870.85 shillings to between 8, 611.68 shillings and 11, 055.35 shillings The President also called upon the private sector to make readjustments to sustain the wellness of the labour force and to keep them happy during hard times.
President Kenyatta directed Labour and Social Protection Cabinet Secretary Simon Chelugui to immediately gazette Central Organisation for Trade Unions (COTU)’s representative on the National Social Security Fund (NSSF) Board of Trustees.