By Sandip Jivan, Manager - Advisory
We wish to bring to your attention the recent publication of the Regulation of Wages (General) (Amendment) Order, 2026 and the Regulation of Wages (Agricultural Industry) (Amendment) Order, 2026, through Kenya Gazette Supplement No. 128, Legal Notices No. 95 and 96, dated 29 May 2026. The Regulations were issued pursuant to the Labour Institutions Act and are deemed to have come into effect on 1 May 2026.
The revised Wage Orders formalize the Government's announcement made during the 2026 Labour Day celebrations regarding the adjustment of statutory minimum wages and set out the updated minimum wage rates applicable across various sectors, occupations, and geographical regions within Kenya.
Overview of the Changes
The new Wage Orders prescribe revised minimum wage rates for employees engaged in:
- General labour and support services;
- Domestic work;
- Security services;
- Clerical and administrative functions;
- Driving and transport-related occupations;
- Skilled, semi-skilled, and artisan trades; and
- Agricultural sector occupations.
The rates vary depending on:
- The employee's occupation and skill level; and
- The geographical area in which the employee is engaged, namely:
- Nairobi, Mombasa, Kisumu, Nakuru and Eldoret Cities;
- Former Municipalities and the Town Councils of Mavoko, Ruiru and Limuru; and
- All other areas within Kenya.
Employer Compliance Requirements
In light of the revised Wage Orders, employers are advised to undertake an immediate review of their payroll structures to ensure compliance with the new statutory minimum wage thresholds.
Specifically, employers should:
- Review all employee remuneration against the applicable minimum wage rates.
- Identify employees whose salaries fall below the revised statutory minimums.
- Implement the necessary salary adjustments to ensure full compliance.
- Assess any consequential impact on:
-
- Overtime calculations;
- Leave pay;
- Public holiday pay;
- Service pay and terminal dues;
- Pension contributions; and
- Other salary-linked benefits.
- Calculate and process any wage arrears resulting from the retrospective implementation date of 1 May 2026.
- Maintain adequate records demonstrating compliance with the revised Wage Orders for purposes of labour inspections and statutory audits.
Failure to comply with the prescribed minimum wage requirements may expose employers to labour disputes, statutory penalties, claims for underpayments, and potential enforcement action by the relevant authorities.
Agricultural Sector Employers
The Agricultural Industry Wage Order has also been revised, affecting categories such as unskilled employees, stockmen, herdsmen, watchmen, farm foremen, farm clerks, artisans, tractor drivers, and lorry/van drivers. Employers operating within the agricultural sector should similarly review their remuneration structures against the updated statutory requirements.
How Grant Thornton Kenya Can Assist
To support our clients with the implementation of the revised Wage Orders, Grant Thornton Kenya is available to provide:
- Payroll compliance reviews;
- Employee wage mapping and gap analysis;
- Salary adjustment calculations;
- Arrears computations;
- Labour law compliance advisory; and
- Ongoing payroll administration support.
Our team would be pleased to assist you in assessing the impact of the new regulations on your workforce and ensuring that your organization remains fully compliant with the applicable employment laws.
The full, official Kenya Gazette Supplement is available for download below as a PDF for your technical reference and record-keeping as gazetted by the Government of Kenya.
Should you require any clarification regarding the revised Wage Orders or assistance with implementation, please do not hesitate to contact your Grant Thornton relationship manager or our payroll advisory team on payroll@ke.gt.com
