A general labourer in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret will earn a minimum monthly wage of Sh18,047.40 Kenya's latest minimum wage increase is expected to inject additional spending power into the economy and provide relief to thousands of low-income workers.
However, it is also set to raise labour costs for businesses across key sectors, potentially squeezing margins and adding pressure to consumer prices. The wage review, gazette by Labour and Social Protection Cabinet Secretary Alfred Mutua on Friday 5, gives legal effect to a directive announced by President William Ruto during the 2026 Labour Day celebrations.
The new wage orders provide for a 12 per cent increase for general workers and a 15 per cent increase for agricultural workers. Central Organization of Trade Unions (Kenya) secretary general Francis Atwoli while welcoming the gazettement said that the move will improve the lives of Kenyan workers.
“The wage increment is expected to provide much-needed relief to thousands of low-income workers and their families while stimulating domestic demand and supporting economic recovery,” said Atwoli. Under the new wage schedule, a general labourer in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret will earn a minimum monthly wage of Sh18,047.40, while a night watchman will earn Sh20,133.72.
Cashiers and drivers of heavy commercial vehicles will now earn at least Sh40,724.23 per month. In agriculture, an unskilled worker will earn a minimum monthly wage of Sh9,196.93 while farm foremen will receive Sh26,591.20. Tractor drivers and lorry drivers will also benefit from revised rates.
The adjustments come at a time when businesses are grappling with slowing consumer demand, elevated operating costs and pressure to preserve profitability, while workers continue to struggle with the high cost of living. Latest purchasing managers' index shows that Kenya’s private sector recorded its sharpest deterioration in business conditions in 10 months during May, as rising inflation, higher operating costs and weakening consumer demand combined to slow activity across key sectors of the economy.
The index shows businesses shed jobs in May for the first time in 15 months as weakening customer demand and rising operating costs forced firms to lay off workers, signalling fresh strains within the private sector.