Kenyan unions are pushing for wage increases of up to 50 percent as inflation and shifting labour patterns erode real incomes across sectors.
The Central Organisation of Trade Unions (Cotu) has renewed its call for a 23 percent minimum wage hike, citing persistent inflation and declining real wages that have weakened workers’ purchasing power. Cotu secretary general Francis Atwoli said the demand is part of ongoing negotiations with government and employers, with hopes of a salary adjustment during this year’s Labour Day celebrations in Vihiga County.
Meanwhile, civil servants from 19 constitutional commissions and independent offices have given the Salaries and Remuneration Commission (SRC) a 14-day deadline to negotiate a collective bargaining agreement, demanding a 20 percent pay rise for highest-grade staff and up to 50 percent for the lowest-grade employees, effective July 1, 2026. The Kenya Independent Commissions Workers Union (KICOWU) said members have not seen a recent salary review comparable to other public sector workers.
The unions are also seeking adjustments to housing, commuter, and other allowances, with some requesting increases of up to 100 percent, along with revised leave entitlements equivalent to one month’s basic salary annually and expanded medical and mental health coverage.
Labour market data cited by Cotu shows a shift toward precarious work, with permanent employment falling from 42.3 percent in 2016 to 31.7 percent in 2025, while temporary and casual work rose from 24.1 percent to 35.8 percent over the same period. Informal sector employment grew from 74.2 percent to 78.6 percent of total jobs, with 3.6 million new informal positions added compared to just 0.6 million in the formal sector.
Kenya’s labour force expanded from 19 million in 2016 to 24 million in 2025, driven by a youthful population — nearly 80 percent under 35 — and rising labour force participation from 67 percent to 71 percent. However, this growth has been hampered by a persistent skills mismatch.
Public sector unions argue that current salary scales, set in a pre-inflationary era, no longer reflect the market value of their work, and warn that failure to adjust wages risks triggering nationwide labour unrest that could disrupt essential services.
The SRC faces pressure to balance union demands with fiscal constraints set by the Treasury and international partners, knowing that any agreement could impact national spending targets while failure to act risks destabilizing public service delivery.
What is driving the push for higher wages across both formal and informal sectors?
Persistent inflation, declining real incomes, and a structural shift toward casual and informal work are reducing job security and purchasing power, prompting unions to demand wage adjustments tied to living costs.
Why are civil servants targeting specific allowances and benefits in their demands?
Unions argue that adjustments to housing, commuter, and leave benefits are necessary to address the full cost of living, especially as basic salaries have not kept pace with inflation over the past 18 months.
What are the potential consequences if the SRC fails to reach an agreement before the July 1 deadline?
Unions have warned that failure to negotiate could lead to nationwide labour unrest, potentially disrupting critical government operations in education, justice, elections, and anti-corruption oversight.
