Kenya Increases Minimum Wage by 12% Amid soaring Inflation

David Indeje is Khusoko’s Digital Editor, covering East African markets.
Kenya's walking in the streets of Nairobi

Kenya’s minimum wage will be 12 percent higher in 2022, President Uhuru Kenyatta said, from the current Ksh 13,500.

The minimum wage was last reviewed in 2018. 

“I today declare an increase of the minimum wage by 12 percentage points with effect from today,” he said while addressing Kenyans during Sunday’s 57th Labour Day Celebrations at Nyayo Stadium in Nairobi.

“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 President said.

This means employees will enjoy a higher minimum wage. For instance, the minimum average wage in Nairobi, Mombasa, and Kisumu will rise to KSh15,201.64 from KSh13,572.90.

The 2022 Labour Day celebrations convened by the Central Organisation for Trade Unions (COTU) Secretary General Francis Atwoli were marked under the theme “Job Creation, Peace, and Sustainability.”

The official annual inflation rate in Kenya rose to 6.47 percent in April, according to the National Bureau of Statistics. Month-on-month, headline 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 NCBA Research Analysts.

Subsequently, food inflation rose to a four-and-a-half-year high of 12.27 percent, 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.

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David Indeje is Khusoko’s Digital Editor, covering East African markets.

In my role as Community Engagement Editor For Khusoko, I care about our audience. engaging them, getting news delivered to them across a variety of platforms, and expanding the diversity of voices on our website.

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