A dispute has emerged between the Federation of Kenya Employers (FKE) and the Central Organization of Trade Unions Kenya (COTU-K) over the implementation of a 12 per cent wage increase announced by President William Ruto during this year’s Labour Day celebrations.

In a statement issued Monday, FKE dismissed remarks by COTU Secretary General Francis Atwoli that the pay rise applies to all Kenyan workers, terming the interpretation erroneous, unfounded and deliberately misleading.

The employers’ body argued that under Kenyan law, government-directed wage adjustments apply strictly to statutory minimum wages set through the Wages Councils and published in Regulation of Wages Orders.

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“The law only grants power to regulate minimum wages, not general wages. This is done through the tripartite Wages Councils as gazetted from time to time. Any government-directed wage adjustments apply strictly to the statutory minimum wages, as prescribed in the Regulation of WagesOrders,s and not the actual wages payable to all employees,” FKE said.

“Employers have the legal discretion to determine wages above the statutory minimum wages based on contracts of employment, collective bargaining agreements (CBAs), productivity, and market dynamics.”

FKE further cited provisions of the Labour Institutions Act, 2007, and the Labour Relations Act, 2007, saying Atwoli’s position has no legal basis and risks creating unnecessary tension between employers and workers.

However, COTU-K strongly rejected FKE’s stance, insisting that the President’s pronouncement constitutes a clear policy directive aimed at improving workers’ welfare amid the rising cost of living.

“The President’s pronouncement was clear, unequivocal, and made in the full glare of the public. It constitutes a policy directive that is already in the process of being operationalised into law,” Atwoli said.

The union accused FKE of attempting to frustrate the implementation of the wage increase and deny workers much-needed relief, arguing that limiting the directive to minimum wages ignores the broader policy intent.

COTU-K also emphasised the importance of Kenya’s tripartite labour framework, warning that failure by employers to align with national policy direction could undermine industrial harmony.

“We wish to remind employers that Kenya operates under a tripartite framework, and respect for national policy direction is fundamental to maintaining industrial harmony, and that the posture adopted by FKE signals an unwillingness to support progressive labour reforms and raises serious concerns about their commitment to social dialogue,” Atwoli stated.

The union called on employers to implement the directive once it is formalised into law and to disregard what it terms as misleading interpretations by FKE.