12% salary increase takes effect: How much entry-level workers will earn

Thousands of Kenya’s lowest-paid workers are set to take home bigger paychecks after the government’s 12 per cent statutory minimum wage increase officially took effect following the gazettement of the new wage order.

Although President William Ruto first announced the pay rise during this year’s Labour Day celebrations on Friday, May 1, 2026, the increase became legally enforceable after the publication of Legal Notice No. 108 on Friday, June 26, 2026, under the Regulation of Wages (General) (Amendment) Order, 2026.

The order applies retrospectively from Friday, May 1, 2026, meaning eligible workers are entitled to salary arrears dating back to that date.

On Tuesday, June 30, 2026, the Federation of Kenya Employers (FKE) directed employers and human resource departments to immediately update their payroll systems to reflect the new statutory minimum wages and calculate salary arrears owed to affected employees.

The increase applies to workers earning the statutory minimum wage, including domestic workers, house helps, cleaners, nannies, gardeners, messengers, sweepers and watchmen.

It does not automatically apply to employees earning above the legal minimum, whose salaries remain subject to employment contracts or collective bargaining agreements.

How much more will workers earn?

Under the revised wage structure, domestic workers, cleaners, nannies and day watchmen employed in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret will now earn a minimum monthly salary of Ksh18,047, up from Ksh16,113, an increase of Ksh1,934 per month.

Workers in former municipalities such as Mavoko, Ruiru and Limuru will earn a minimum of Ksh16,650, up from Ksh14,866, translating to an additional Ksh1,784 every month.

In other parts of the country, the statutory monthly minimum wage has increased from Ksh8,596 to Ksh9,268 under the revised wage order.

Since the wage order took effect retrospectively from Friday, May 1, 2026, eligible workers should also receive salary arrears covering the period before employers updated their payrolls.

Meanwhile, employees in the agricultural sector will benefit from a separate 15 per cent minimum wage increase under the Regulation of Wages (Agricultural Industry) (Amendment) Order, 2026.

The revised wage order gives legal effect to President Ruto’s Labour Day pledge to raise the minimum wage by 12 per cent as part of the government’s efforts to cushion low-income workers against the rising cost of living.

Employers are expected to comply with the new rates immediately, with workers covered under the statutory minimum wage set to receive the revised salaries together with any outstanding salary arrears due from Friday, May 1, 2026.

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