May 5, 2026

Federation of Employers reject 12% general wage increase

COTU) Secretary General, Francis Atwoli, has criticised the Federation of Kenya Employers (FKE) for opposing the 12 per cent general wage increase

COTU) Secretary General, Francis Atwoli, has criticised the Federation of Kenya Employers (FKE) for opposing the 12 per cent general wage increase

The Central Organisation of Trade Unions (COTU) Secretary General, Francis Atwoli, has criticised the Federation of Kenya Employers (FKE) for opposing the 12 per cent general wage increase announced by President William Ruto.

Speaking on Tuesday, May 5, Atwoli said that FKE’s offer to implement the wage increase only on minimum wages is misleading and is contrary to the government’s position on improving workers’ earnings amid rising cost of living.

Atwoli maintained that the planned wage increase, which it says stands at 12 per cent, is a general wage adjustment directed by Ruto and expected to be formalised through a gazette notice by the Ministry of Labour.

“And you can go back to the clip, the president said this was a general wage increase. Once it is gazetted, it automatically becomes law and enforceable. That is what is done everywhere in the world,” he stated.

The COTU boss further accused the FKE leadership of consistently delaying or opposing wage implementation processes, including previous adjustments, which it said had slowed down benefits for workers.

“We want to tell Kenyans to ignore the statements being released by the Federation of Kenya Employers. We must ignore those press releases,” he added.

Atwoli’s statements follow FKE’s opposition to the 12 per cent general wage increase, stating that it will only adjust minimum wages by 12 per cent despite Ruto’s orders.

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FKE Chief Executive Officer Jacqueline Mugo, on Monday, May 4, clarified that payslips will be strictly reviewed in accordance with the existing legal frameworks governing minimum wages, dismissing claims that the 12 per cent increase applies to all workers.

According to Mugo, employers will therefore review payslips to ensure compliance with the updated minimum wage thresholds where applicable.

Regarding wages above the minimum wage, FKE stated that they will not be adjusted, noting that salaries will continue to be determined by employment contracts.

The uncertainty has left employees at a crossroads, unsure whether they will receive the increment.

During Labour Day celebrations on May 1, Ruto ordered a 12 per cent wage increase for public workers and a 15 per cent minimum wage increase for those in the agricultural sector.

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