Kenya’s minimum wage policy continues to evolve in response to economic conditions and worker welfare concerns. The most recent updates took effect in November 2024, reflecting efforts to align wages with rising living costs. This blog highlights the latest figures, regional and sector-specific wage structures, compliance expectations, and the ongoing debate around living wages in 2025.
National Minimum Wage Adjustment
Effective November 1, 2024, the general minimum wage in urban areas such as Nairobi, Mombasa, and Kisumu increased by 6%. This statutory raise was formalized under The Regulation of Wages (General) (Amendment) Order, 2024, published on October 6, 2024.
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Previous rate: KES 15,201.65 per month
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New rate: KES 16,113.75 per month
This decision was the outcome of tripartite discussions involving the Government of Kenya, the Federation of Kenya Employers (FKE), and labor unions.
Regional Wage Differences
Wage rates vary across regions to reflect cost-of-living disparities:
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Nairobi, Mombasa, Kisumu: KES 16,113.75
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Other municipalities: KES 14,025 – 15,652
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Rural areas: KES 8,109 – 12,995
These baseline rates apply to general workers and serve as a reference for sector-specific adjustments.
Sector-Specific Wage Rates
Kenya uses a tiered wage structure based on job role and skill level. Notable categories include:
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House servants and cooks: KES 9,129.31 per month
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Night security guards (urban): KES 17,976.54 per month
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Artisan Grade I: KES 36,360.92 per month
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Artisan Grade II: KES 29,542.36 per month
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Unskilled agricultural workers: KES 7,544.66 per month
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Farm foremen: KES 13,610.46 per month
These rates are legally enforceable and designed to reflect the responsibilities and skills associated with each role.
Compliance and Enforcement
Employers are legally required to comply with the prescribed wage guidelines. However, implementation varies by sector:
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Formal sector: Generally compliant, particularly in manufacturing and public service
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Informal sector: Widespread underpayment persists, with over 80% of the workforce employed informally
Non-compliance may attract penalties of up to KES 100,000 or imprisonment for up to two years. Despite this, enforcement remains a challenge due to limited regulatory oversight.
The Living Wage Gap
Although the 6% increase is a positive move, the current minimum wage still falls short of covering essential living costs in urban areas. For example:
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Typical rent in Nairobi: KES 15,000 – 25,000 per month
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Minimum wage (Nairobi): KES 16,113.75 per month
In 2024, the Central Organization of Trade Unions (COTU) had proposed a 26.3% wage increase, which was not adopted. The discussion on aligning minimum wages with actual living expenses remains ongoing.
Stay Compliant with FaidiHR
Managing compliance with wage regulations is crucial for every employer. At FaidiHR, we help you automate payroll, streamline HR operations, and stay aligned with Kenya’s labor laws.
Talk to us today and simplify your payroll compliance.
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