Insights · Labour Law

Minimum Wage in Kenya 2026: The New Rates Employers Must Pay

Kenya raised the statutory minimum wage from 1 May 2026. If you employ anyone, you must pay at least the new minimum for that employee's job category and location, and underpayment is a common, avoidable source of claims. Here are the new figures and what they mean for your payroll.

What changed

Through the Regulation of Wages (General) (Amendment) Order, 2026, the government announced a 12% increase in general wages and a 15% increase in agricultural wages, effective 1 May 2026. Employers are expected to comply immediately.

The new minimum monthly rates (entry-level / general)

For the lowest-paid and general categories (general labourers, house helps, gardeners, watchmen, messengers, sweepers), the new minimums are:

Remember: rates vary by job category

Kenya's minimum wage is tiered across many job categories and three location zones. The figures above are the entry-level floor, skilled roles (artisans, drivers, machine operators, cashiers and others) have higher statutory minimums set in the wage order. Always check the specific category for each role, not just the general rate.

Don't forget the 15% housing allowance

Where an employer does not provide housing, the law requires a housing allowance of 15% of the basic wage on top of the minimum. This is frequently missed and it is part of lawful pay.

What employers must do now

Underpayment can lead to back-pay awards and penalties. Our HR compliance and labour law compliance services keep your pay and contracts aligned with the law, and our Kenya payroll guide covers the deductions that sit alongside wages.

Official sources: Kenya Law (employment statutes).

Written by the Virtual Ivy HR team

Virtual Ivy is a Nairobi-based HR consulting and recruitment firm with 10+ years’ experience helping startups, SMEs, NGOs and corporates across Kenya stay compliant and build high-performing teams. About Virtual Ivy · Book a free consultation.

Disclaimer: This article is general guidance for educational purposes and is not legal or tax advice. Statutory rates and requirements change. For advice specific to your organisation, speak to a qualified HR, legal or tax professional.

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