President Kenyatta Orders a 12% Minimum Wage Increase, Warns Rogue Fuel Dealers

President Uhuru Kenyatta with COTU boss Francis Atwoli at Nyayo National Stadium

The president warned rogue fuel dealers who are pocketing government fuel subsidies and instead, exporting the product to foreign countries at higher prices that they will be dealt with ruthlessly

By The Weekly Vision Online

President Uhuru Kenyatta has ordered an immediate increase in the minimum wage for Kenyan workers by 12 per cent. Central Organization of Trade Unions (COTU) boss Francis Atwoli had earlier in his speech asked for a 23.16 per cent increase.

The president made the declaration on Sunday at Nyayo National Stadium where he presided over the International Labor Day Celebrations accompanied by Labour minister Simon Chelugui and the COTU boss Francis Atwoli. He pointed out that this was part of his government’s efforts to offer relief to Kenyans at the height of the Covid-19 pandemic, it also included reducing Pay as You Earn (PAYE) and Value added tax (VAT) on essential products to avail more income to workers across the country and cushion Kenyans from the devastating effects of the Covid 19 pandemic.

He said: “The recovery from effects of Covid-19, which was witnessed through losses of lives, jobs, and salary cuts, have been slowed down by events such as the ongoing conflict between Russia and Ukraine.”

 This will translate into an increase in the basic minimum monthly wage from Ksh.13, 500 currently. “I today declare an increase of the minimum wage by 12pc points with effect from today,” he said, referring to it as his Labour Day gift to Kenyans

The president warned rogue fuel dealers who are pocketing government fuel subsidies and instead, exporting the product to foreign countries at higher prices that they will be dealt with ruthlessly. He said the country’s fuel subsidy programme had ensured that Kenya maintained among the lowest pump prices in the world

This development comes after a nearly four years freeze of minimum wage increments that in the previous years had become an annual ritual. This will translate into an increase in the basic minimum monthly wage from Ksh.13, 500 currently. “I today declare an increase of the minimum wage by 12pc points with effect from today,” he said, referring to it as his Labour Day gift to Kenyans. The minimum wage in Kenya of Ksh.13,500 was the last review in 2018.

and Ksh. 30, 627.45 to between Sh15, 201.64 and Shs. 58, 302.24 for people living in Nairobi, Mombasa and Kisumu, the country’s major cities where the cost of living is considered much higher. It is an attempt by President Uhuru Kenyatta’s administration to cushion Kenyans against the rising cost of living occasioned by Covid-19 and external economic factors.

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