Kenya’s minimum wage has been increased by 12% during this year’s Labour Day by President Uhuru Kenyatta amid rising inflation and increase in basic goods. The minimum wage was last reviewed in 2018.
In delivering his speech during Sunday’s 57th Labour Day Celebrations at Nyayo Stadium in Nairobi, he said “I today declare an increase of the minimum wage by 12 percentage points with effect from today. 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 minimum average wage in Nairobi, Mombasa, and Kisumu will rise to Ksh. 15,201.64 from the current Ksh. 13,572.90. Skilled and semi-skilled employees will see their minimum monthly wage rise from between Ksh. 7,689.85 and Ksh. 9,870.85 to between Ksh. 8,611.68 and Ksh. 11,055.35.
The annual inflation rate in Kenya rose to 6.47 percent in April, according to the Kenya National Bureau of Statistics (KNBS). Month on month inflation rose by 1.69 percent, double the March reading of 0.85 percent. This marks the sharpest monthly increase in consumer prices in two years according to research by NCBA.
Subsequently, food inflation rose to a four and a half year high to stand at 12.27%, on the back of heightened supply constraints underpinned by global supply disruptions, prolonged harsh weather locally as well as rising production and transport costs. The weakening Kenyan shilling has left citizens struggling with higher consumer prices through the import of essential goods.