As the echoes of Labour Day 2025 die from Uhuru Park, where Kenya celebrated its workforce with spirited speeches, the harsh realities facing employees come into sharp focus. Despite a projected GDP growth of 5.3% for 2025 by the World Bank, driven by agriculture and services, the benefits remain elusive for most workers. Low wages, job insecurity, and a ballooning fiscal deficit paint a grim picture for our labour force.
Kenya’s fiscal deficit, which is projected at 4.5% of GDP for the FY’2025/26 fiscal year from a projected deficit of 5.1% of GDP for the year 2024/25 , according to Kenyan Treasury, continues to burden the economy. The Central Bank of Kenya reported public debt at KES 11.2 trillion by April 2025 With debt service at 66.0% of tax revenue in February 2025. Leaving Only 34.0% percent of tax revenue for the rest of the government spending, both recurrent and development. This fiscal strain limits public investment in job creation and social protections, leaving workers vulnerable. Revenue shortfalls and resistance to new taxes, like the scrapped finance tax bill of June 2024, further complicating efforts to fund worker friendly policies.
The informal sector, employing over 83.0% of workers, offers little respite. Inflation, currently at 4.1% as per Kenya National Bureau of Statistics, still outpaces wage growth. Hotel workers, for instance, earn as little as KES 10,000.0 monthly, an amount that can no longer sustain basic needs in today’s economy. The minimum wage, unchanged since 2022 at KES 15,201.0 has continued to draw criticism from the Central Organization of Trade Unions (COTU), which demands a 22.0% hike.
Employers on the other hand, continue to grapple with high taxes and energy costs, resist wage reforms, citing thin margins
Since 2022, over 5,000 jobs have been cut across 57 companies as per the Federation of Kenya Employers report released early in the year, driven by unpaid government bills exceeding KES 1.0 trillion and rising operational costs. Sectors like manufacturing and education, including institutions like Moi University, have been hit hard. Automation continues to threaten jobs in traditional sectors such as mechanization in Agriculture.
Hostile working conditions persist, exploiting the desperation that comes due to scarce opportunities, some employers go to an extent of discouraging unionization, violating the Employment Act of 2007 just to mention a few of employers misdoings. Weak enforcement leaves workers exposed! We must act.
We can’t be celebrating Kenya’s workers, while their struggles-declining real wages, job losses, and poor working conditions persist. Revise the minimum wage, enforce Labour Laws, Promote Job creation, ease Tax Burdens – Lets make 2025 Labour day a turning point
