Kenya’s Minimum Wage Standoff: Workers’ Rights, Employer Resistance, and the Role of Unions

COTU - K’s General Secretary Francis Atwoli and FKE’s CEO Jacqueline Mugo

Introduction: A Wage Increase Mired in Dispute

On May 1, 2025, during Labour Day celebrations at Uhuru Gardens in Nairobi, President William Ruto reaffirmed his directive for the full implementation of a 6% minimum wage increase across both public and private sectors. This increment, initially announced in 2024 and formalised through a gazette notice by Labour Cabinet Secretary Dr. Alfred Mutua, was to take effect from November 1, 2024.

Yet, nearly six months on, many employers have yet to comply. The impasse highlights deeper tensions between workers’ rights and capital interests, an entrenched pattern in Kenya’s labour history. At the centre of this standoff are two powerful forces: the Central Organisation of Trade Unions (COTU-K) and the Federation of Kenya Employers (FKE).

COTU and FKE: Who Speaks for Whom?

The Central Organisation of Trade Unions, Kenya (COTU-K), is the largest national trade union confederationin Kenya. Established in 1965, it represents millions of workers across both the formal and informal sectors. COTU is affiliated with global labour institutions such as the International Trade Union Confederation (ITUC) and the Organisation of African Trade Union Unity (OATUU). Its mandate includes advocating for workers’ rights, pushing for better wages, and influencing national labour policy.

COTU Secretary-General Francis Atwoli has long been a vocal defender of workers. In the current standoff, Atwoli has criticised FKE for allegedly lobbying against the wage increase and discouraging employers from complying.“The President gave us a salary increase, but FKE has been taking us in circles, and we don’t know what dance they’re making us do. They want us to keep going to meetings and talks, even after the President made the declaration and involved all stakeholders.” said Atwoli.

On the other side is the Federation of Kenya Employers (FKE), a key national employer body that represents the interests of businesses and industry players. Formed in 1959, FKE acts as the voice of employers in Kenya’s tripartite structure involving the government and trade unions. It is affiliated with international employer organisations, including the International Organisation of Employers (IOE).

FKE CEO Jacqueline Mugo has denied obstructing the wage directive. Instead, she accused the Ministry of Labour of bypassing due legal process, such as convening the Wages Council unprocedurally, which is required under the Labour Institutions Act, 2007, to formally review minimum wage policy. “"Contrary to these unwarranted allegations, FKE has consistently advocated for a fair and transparent process in reviewing the statutory minimum wage in Kenya. It is important to note that the federation has actively engaged in ensuring that the relevant processes, including the constitution and operationalisation of the Wages Councils, are followed lawfully and effectively to enable them to play their envisaged role," she said in an official statement .

Clashing Interests and Unequal Power

The wage dispute reflects a broader pattern across Africa where worker gains often clash with business interests and government indecision. While the government issued the directive in response to rising living costs and inflation, enforcement has been patchy, especially in the private sector. Many workers in Kenya, particularly in low-wage sectors such as manufacturing, agriculture, and domestic work, continue to earn below a living wage.

COTU’s frustration with FKE is rooted in a long history of labour battles, where employers use legal loopholes and bureaucratic delays to delay or dilute wage increments. Atwoli warned that workers could resort to strikes if compliance is not ensured.

FKE, meanwhile, maintains that wage increases must consider economic sustainability. It warns that a mandatory raise without consultation could lead to job losses, especially among small and medium enterprises struggling with post-pandemic recovery.

Government's Role: Between Policy and Enforcement

President Ruto’s administration has publicly supported wage growth, with Ruto declaring that no employer should ignore government directives. “When we agreed to enhance pay by 6% last year, there ensued a debate and some of the employers have not implemented the 6% we agreed on. It is not right, it is not acceptable,” said Ruto. “I am directing the ministry to work with the Head of Public Service to ensure that every employer makes sure that we implement the 6% increase of salary that we agreed upon last year and to quickly embark on the exercise to put together the next agreement so that we can take it forward in the next time.”” He added.

Labour Cabinet Secretary Alfred Mutua echoed the President, noting that the Ministry was committed to monitoring compliance and would penalise employers who failed to implement the 6% raise. However, civil society groups and unions say the government must move beyond public pronouncements and ensure enforcement mechanisms are in place especially for informal workers who lack contracts and legal protections.

Conclusion: A Test of Kenya’s Labour Future

The COTU-FKE standoff is more than a policy disagreement, it is a referendum on whose interests shape Kenya’s economic development. The minimum wage increase, if fully implemented, could provide essential relief for low-income workers facing soaring costs of living. But without enforcement, the policy risks being symbolic rather than transformative.

For Kenya’s labour movement, this moment calls for renewed organising, stronger coalition-building with informal sector groups, and a sharper focus on wage justice. Employers, meanwhile, must recognise that fair wages are not a burden but a foundation for sustainable economic growth.

As unions across Africa battle similar wage stagnation and employer resistance, Kenya’s experience offers valuable lessons: policy wins must be followed by sustained pressure, vigilance, and mobilisation.

References

1. Federation of Kenya Employers– FKE

2. Federation of Kenya Employers lock horns with COTU over minimum wage implementation, Link

3. Win for Workers as Ruto issues fresh orders over 6% salary increase, The Kenya Times, May 2025 – The Kenya Times

4. Central Organisation of Trade Unions – COTU-K

Labour Institutions Act, 2007 –Kenya Law