Atwoli calls for 23pc increase in minimum wage as labour market changes

COTU Secretary General Francis Atwoli addresses shop stewards at the Cotu–Kenya headquarters in Nairobi, on April 18, 2026. [Benard Orwongo Standard

Central Organisation of Trade Unions (Cotu) secretary general Francis Atwoli has renewed calls for a 23 per cent minimum wage increase for Kenyan workers, citing high living costs and structural changes in the labour market.

Addressing shop stewards at the Cotu–Kenya headquarters, Atwoli argued that the wage demand is anchored on persistent inflation and declining real incomes, which continue to erode workers’ purchasing power.

He said the proposed increase is part of ongoing negotiations with government and employers aimed at cushioning workers from economic shocks.

“Right now we are negotiating for salary increase and we are hopeful that the President will increase salaries during this year’s Labour Day,” he said.

This year’s Labour Day celebrations will be held in Vihiga County.

Atwoli said the push for salary review comes at a time when Kenya’s labour market is undergoing major structural shifts that are weakening job security and suppressing wage growth.

He warned that the increasing reliance on casual and informal employment is making it harder for workers to achieve stable and decent incomes.

According to labour market data, permanent employment has steadily declined over the past decade, falling from 42.3 per cent in 2016 to 31.7 per cent in 2025, while temporary and casual employment has increased from 24.1 per cent to 35.8 per cent over the same period.

Shop stewards at the Cotu–Kenya headquarters in Nairobi, on April 18, 2026. [Benard Orwongo Standard

At the same time, the informal sector has expanded from 74.2 per cent to 78.6 per cent of total employment.

In absolute terms, formal sector jobs increased modestly by about 0.6 million, while informal sector employment grew by 3.6 million, indicating that most new jobs are being created in low-security and low-protection segments of the economy.

The shift reflects a growing trend toward precarious work, where workers lack stable contracts, predictable incomes, and access to comprehensive social protection.

This transformation of the labour market, Cotu-K argues, has intensified pressure on wages and reinforced the need for periodic salary adjustments tied to inflation and cost-of-living changes.

The union leadership maintains that without such adjustments, workers risk falling further behind economically despite being employed.

Kenya’s labour force has also expanded significantly, growing from about 19 million people in 2016 to 24 million in 2025, driven largely by a youthful population, with nearly 80 per cent of citizens under the age of 35. Labour force participation has also risen from 67 per cent to 71 per cent, reflecting increased economic engagement among working-age Kenyans.

However, this growth has been accompanied by persistent challenges, including a mismatch between skills and labour market demands.

“Employers continue to report difficulties in finding adequately trained workers, contributing to unemployment, underemployment, and concentration of young people in informal and low-paying jobs,” read the economic paper on the state of the labour market by Cotu.

Atwoli said these structural challenges further justify the need for wage reforms, arguing that salary increases must reflect both inflationary pressures and the realities of a changing labour market.

He maintained that the proposed 23 per cent increment is necessary to restore purchasing power and support household stability.

He reiterated that wage negotiations remain a key priority for Cotu-K ahead of Labour Day, with unions also pushing for revised Collective Bargaining Agreements to align with current economic conditions.