On May 1, 2025, President William Ruto delivered a significant address during Kenya’s 60th Labour Day celebrations at Uhuru Gardens, Nairobi. His speech underscored the government’s dedication to enhancing workers’ rights, promoting economic self-reliance, and fostering a conducive environment for national development.
Key Highlights from President Ruto’s Speech
- Minimum Wage Increase President Ruto announced a 6% increase in the national minimum wage, directing the Ministry of Labour and Social Protection to activate multiple wage councils as per the 2007 Labour Relations Act. This move aims to ensure fair compensation across various sectors, including agriculture, seafarers, and protective services .
2. Tax Relief on Pension and Gratuity In a bid to alleviate the financial burden on retirees, the President declared the removal of all taxes on pension and gratuity payments. This initiative is expected to enhance the financial security of retired workers .
3. Support for Small and Medium Enterprises (SMEs) Recognizing the pivotal role of SMEs in economic growth, President Ruto announced an increase in the Hustler Fund loan limit. Starting June 2025, small traders will be eligible to borrow between KSh 10,000 and KSh 200,000, empowering them to expand their businesses and create employment opportunities .
4. Promotion of Digital Economy The President emphasized the government’s commitment to developing a ‘digital superhighway’ by establishing digital hubs in every ward. This initiative aims to increase youth employment in the digital space and position Kenya as a leader in the global digital economy .
5. International Labour Agreements To address unemployment and enhance foreign exchange earnings, President Ruto announced plans to sign bilateral labour agreements with countries such as Germany, Canada, the United States, the UAE, and Saudi Arabia. These agreements will facilitate the employment of Kenyans abroad, tapping into the over KSh 400 billion remittance market .
