A fresh wave of debate has followed the announcement of a nationwide wage increase, after William Ruto declared a 12 per cent rise in general wages during the 2026 Labour Day celebrations.

The announcement, made in Vihiga County, applies broadly across sectors, with a higher 15 per cent increment set aside for workers in agriculture and other low-income categories.
                                    COTU Secretary-General Francis Atwoli // X   

What the 12% increase means

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According to the government, the 12 per cent adjustment targets general wages across the economy, affecting both formal and informal workers.

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“I am pleased to announce a 12 per cent increase in general wages,” President Ruto said during the event.

The move comes against a backdrop of rising living costs, with officials saying the increment is meant to cushion workers and improve livelihoods.

The Central Organisation of Trade Unions (COTU) had previously pushed for a higher increase of up to 23 per cent, reflecting pressure from workers facing higher prices for essentials such as food, fuel and housing.

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Atwoli clarifies confusion

Following public reactions and questions, COTU Secretary-General Francis Atwoli clarified how the increments will apply.
He explained that the 12 per cent rise is a general wage increase for all workers, while the 15 per cent figure specifically targets lower-income and agricultural workers.

“The 12 per cent applies to every worker,” Atwoli clarified, distinguishing

Balancing workers and employers

While labour unions welcomed the announcement, employer groups have previously warned of the potential strain on businesses.
At the same time, unions argue that wage reviews have lagged behind inflation, making adjustments necessary to.
                               COTU Secretary-General Francis Atwoli // X

Wider labour reforms

These include agreements addressing domestic workers’ rights and protections against workplace harassment, which officials say are in advanced stages.

Key takeaways

  • 12% wage increase applies to all workers
  • 15% increase targets low-income and agricultural workers
  • Policy introduced during the 2026 Labour Day celebrations
  • Debate continues over the impact on businesses and the cost of living.
“The increment recognises workers’ contribution to the economy.”