EXPLAINED: Why Ruto Did Not Increase Minimum Wage on Labour Day

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A photo of President William Ruto and COTU boss Francis Atwoli during the Labour Day Celebrations at Uhuru Gardens on May 1, 2023
PCS

President William Ruto disappointed many Kenyans on Monday, May 1, after he failed to make a pronouncement on the country's minimum wage during the Labour Day Celebrations.

Ruto, who took the podium, had two appeals, one from Central Organisation for Trade Unions (COTU) Secretary-General Francis Atwoli and the other from Federation of Kenya Employers (FKE) Executive Director, Jacqueline Mugo.

However, the Head of State sided with Mugo, who made a passionate appeal to him not to raise the minimum wage.

Representing employees from across the country, she advised Ruto that an increase in the minimum wage would cause more harm than good.

President William Ruto exchanges pleasantries  COTU boss Francis Atwoli  and FKE  Executive Director  Jacqueline Mugo during the Labour Day Celebrations at Uhuru Gardens on May 1, 2023
President William Ruto exchanges pleasantries with COTU boss Francis Atwoli and FKE Executive Director Jacqueline Mugo (right) during the Labour Day Celebrations at Uhuru Gardens on May 1, 2023.
PCS

"We request that looking at the current state of the economy, you allow businesses to stabilise. A friendly and  predictable business environment which will help businesses to recover and perform well and expand for jobs," she pleaded.

The FKE reminded Ruto that his predecessor, former President Uhuru Kenyatta increased the minimum wage in 2021, thus blocking him from a further increment.

"Minimum wages in this country are well regulated by the laws that we have including the Wage Guidelines which state that they should be reviewed not more frequently than more than once every two years," she noted.

Nonetheless, she promised Ruto that the wages council and National Labour Board will agree and make recommendations on changes in the minimum pay before the 2024 Labour Day celebrations.

On his part, Atwoli asked the President to pronounce a general increment in the salaries of all Kenyans to cater for inflation and the rise in the cost of living.

Ruto did not make any changes to the minimum wage or general salaries of workers. Instead, he explained how the government would address the cost of living.

He listed the lowering of the cost of maize flour to slightly north of Ksh150, adding that his regime focused more on long-term solutions.

Notably, all the leaders present for the celebrations spoke unanimously against the planned mass action protests by Azimio scheduled for May 2. 

President William Ruto speaks during Labour Day celebrations at Uhuru Gardens in Nairobi on Monday, May 1, 2023
President William Ruto speaks during Labour Day celebrations at Uhuru Gardens in Nairobi on Monday, May 1, 2023
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PCS