Workers get between Sh487 and Sh2,000 salary increase

The minimum monthly salary of workers will rise by between Sh486.59 and Sh2,058.17 in line with changes announced by President William Ruto on Wednesday.

The President recommended a six per cent increase in the country’s minimum pay amid increased outcry over the high cost of living and new taxes that have cut the amount of money available for footing bills such as rent, food, and school fees and saving for retirement.

The changes, when effected, will see general labourers, including cleaners, sweepers, gardeners, house servants, day guards, and messengers get a rise of between Sh912.10 and Sh486.59 depending on sector and location.

Kenya’s minimum wage varies by sector and location—covering about 45 separate categories—but all will rise by the same six per cent margin.

Those who will see a higher rise in their pay, in absolute terms, will be grade I artisans, cashiers, drivers of heavy commercial vehicles, and salespersons working within cities —Nairobi, Mombasa, Kisumu, and Nakuru. Their minimum pay will rise by Sh2,058.17 to Sh36,360.92 from the current allowed minimum of Sh34,302.75.

General labourers

The minimum legal pay is usually pegged on location, with those working within cities getting a higher pay compared to those working within all former municipalities and town councils of Mavoko, Ruiru and Limuru. Those working in all other areas get even less.

Miners, stonecutters, turn-boys, waiters, cooks, night watchmen, machine attendants, bakery workers, tailor assistants, junior clerks, vehicle service workers, shop assistants, cars and light van drivers, and copy typists working in areas outside cities, former municipalities and town councils will be on the list of those whose minimum pay rise will be below Sh1,000.

The minimum pay of general labourers, including cleaners, sweepers, gardeners, children’s ayah, house servants, day guards, and messengers outside cities, former municipalities, and town councils will be Sh8,596.49 from the current Sh8,109.90.

But it may be bad news for tailors and drivers of medium-sized vehicles within all former municipalities and town councils since their minimum pay will rise from Sh23,716.20 to Sh25,139.17, ushering them into pay as you earn. A similar fate will befall grade II artisans salespersons, dyers, crawler tractor drivers outside cities and former municipalities and town councils, and grade II artisans working within former municipalities and town councils as their minimum pay crosses the Sh24,000 mark.

In 2022, the minimum wage increased by 12 per cent, marking the first review since 2018. However, the government has generally struggled to enforce the minimum wages in Kenya, with the gazetted salaries remaining on paper, especially in the informal sector.

Kenya Institute of Public Policy Research and Analysis (Kippra) in its Kenya Economic Report 2023 showed the country is grappling with a rise in the number of people whose wages and salaries are far below the minimum required to meet the basic needs of food, shelter and clothing.

Kippra, which offers public policy advice to the government through research, said the minimum wage has not benefited many people due to limited coverage and enforcement.

Minimum wage

“Most workers still earn below minimum wage, accounting for 77 per cent of total workers, out of which 29 per cent and 71 per cent are in the formal and informal sectors, respectively,” said Kippra.

“Enforcement of the minimum wage is limited by an inadequate number of enforcement officers and the complex system of minimum wage setting that varies based on occupation, skills level, and location.”

Additionally, Kippra noted, that the minimum wage allocated to workers was still lower than the amount required to achieve a decent living and was covering only about half of the total necessary expenses.

The 2022 statistics from the International Labour Organisation (ILO) on working poverty showed that 26 per cent of working Kenyans are ranked as extremely poor, while 29 per cent and 25 per cent are classified as moderately poor and near poor, respectively.

This means employment-related incomes for 80 percent of Kenyans have not been sufficient to lift them and their families out of poverty and ensure decent living conditions. The poverty line used by the ILO in the ranking is the absolute international poverty line of $1.90 (Sh253) per person per day at purchasing power parity.

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