Labour Rift Deepens as Unions Back Atwoli Over 12% Wage Hike Amid Dispute with Employers

Fresh tensions have emerged in Kenya’s labour sector after several workers’ unions publicly aligned themselves with Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli in an escalating dispute over the implementation of President William Ruto’s recent wage increment announcement during Labour Day celebrations.

The controversy stems from President Ruto’s declaration of a 12 percent salary increase for workers during this year’s International Labour Day events, a move initially welcomed by labour groups but which has since sparked disagreement over its scope and interpretation.

At the centre of the dispute is whether the increment applies broadly to all workers or is limited to adjustments in the minimum wage structure.

A growing number of unions have now endorsed Atwoli’s position that the wage increase should benefit all employees across the country, not just those earning the lowest statutory pay.

Among the latest to weigh in is the Kenya National Private Security Workers Union. Speaking on behalf of the union, Secretary General Isaac Andabwa defended the position taken by COTU, insisting that the understanding reached during consultations was that the increment would be universal.

“The discussions leading to this agreement involved key stakeholders, and the understanding was clear – the 12 percent increment was meant for all workers,” said Andabwa.

He further argued that labour representatives were fully engaged in the deliberations that informed the President’s announcement, dismissing interpretations that limit the increment to minimum wage earners.

“The intention was not selective. Workers across sectors expected a general upward adjustment, and that is what we continue to stand by,” he added.

However, the Federation of Kenya Employers (FKE) has strongly rejected this interpretation, insisting that the directive strictly referred to revisions of the minimum wage and not a blanket salary increase for all employees.

According to the employers’ body, the adjustment only affects the legally prescribed minimum wage framework, which sets the baseline remuneration across various sectors of the economy.

FKE maintains that extending the increment across all salary scales would impose significant financial pressure on businesses already struggling with high operational costs, inflationary pressures, and a tightening economic environment.

The standoff has now exposed a widening rift between labour unions and employers, setting the stage for what could become protracted negotiations in the coming weeks.

Labour analysts warn that the disagreement risks spilling into broader industrial relations if a clear and unified interpretation of the President’s announcement is not reached.

“The key issue is interpretation. Workers believe it is a general wage increase, while employers argue it is a structured adjustment of the minimum wage,” noted a labour relations expert familiar with the discussions.

As the debate intensifies, unions are expected to continue mounting pressure on employers to implement what they describe as a historic wage increase that should be reflected across all pay slips.

The dispute now places the government in a delicate position as it faces growing expectations from workers while balancing concerns from the private sector over sustainability and cost implications.