This year’s national Labour Day celebrations will be held at Uhuru Gardens in Nairobi. But for millions of Kenyan workers, there is little to celebrate this day, which is traditionally reserved to honour the working class and their achievements. 

Labour Day used to be a powerful platform, with workers gathering at Uhuru Park to hear passionate speeches from union leaders and political figures, celebrating wage gains and demanding better terms. But today, for many, the day feels like a cruel reminder of jobs lost, salaries slashed and promises broken. 

“I used to look forward to Labour Day. Now, it just reminds me that I’ve been out of work for nearly two years,” says Alex Oduor, a former employee of a construction firm that recently shut down due to the prevailing tough economic times. 

Retrenchment wave 

Over the past two years, Kenya has witnessed a wave of retrenchments in both the private and public sectors. 

From banks to media houses, manufacturing to businesses, companies are downsizing in the face of economic challenges. The number of firms relocating from Kenya as a result of the unfavourable taxation regime has been increasing. 

In many instances, redundancy notices are issued quietly, with little or no compensation for the workers affected. 

Several major firms, both local and international, have downsized their workforce, citing high taxation, inflation, and tough business conditions as key reasons for the layoffs. 

Even State-owned enterprises have not been spared either. Earlier this year, the Kenya Kwanza government announced plans to dissolve nine State corporations and merge 42 others as part of a sweeping reform programme aimed at improving efficiency and reducing the government’s wage bill. 

Under the reforms, nine State corporations were dissolved, with their functions transferred to relevant ministries or other State entities, a move that analysts say could lead to layoffs despite the government insisting that nobody would be retrenched. 

Higher taxes 

For those who are still employed, the celebration is tinged with frustration. The government has either introduced or raised several taxes over the past year – housing levy, VAT, Social Health Insurance Fund (SHIF), NSSF, and a graduated PAYE structure that bites deeper into middle and lower incomes. 

“My payslip is now just a formality,” jokes Sarah Chepkok, a civil servant. “After deductions, I can barely meet my basic needs. What exactly are we celebrating on Labour Day?” she asked. 

Kenya’s youth, the majority of the population, continue to bear the brunt of joblessness. 

Statistics from the Kenya National Bureau of Statistics estimate youth unemployment at over 35 per cent, though the real number could be higher due to underemployment and informal labour. 

Graduates churned out by universities each year face an unforgiving job market, forcing many into informal work, gig jobs, or migration to other countries. 

Labour Day, for them, feels like a celebration of a workforce they’ve yet to join. 

Labour Day celebrations over the years have been politicised, often used as platforms for populist promises that rarely materialise, said Machakos Deputy Governor Francis Mwangangi. 

Despite calls for minimum wage guidelines, job security, and stronger labour protections, progress remains painfully slow, he added. 

“The speeches are the same every year. What changes? Nothing,” says Stanley Ongaro, a boda boda operator in Kisumu. “We need action, not slogans.” 

For Labour Day to regain relevance, Mwangangi said Kenyan leaders and trade unions must go beyond ceremony and address the real struggles facing workers. 

That, he said, includes policy reforms that protect jobs, enforce labour laws, ensure fair wages, and support small enterprises that create employment. 

“Until then, May 1 will remain a national holiday, yes, but not a celebration. For many Kenyans, it’s simply a pause to reflect on what was lost, and what remains elusive: dignity in work, and hope for a better tomorrow,” said Mwangangi. 

Income crisis 

Most employees are grappling with a major income crisis worsened by increased statutory deductions introduced by President William Ruto’s administration. 

A recent report from Auditor General Nancy Gathungu showed that more than 47,300 government employees take home less than a third of their pay after deductions, which is below the limit set in law. 

The 2007 Employment Act requires that no employee should take home less than one-third of their basic salary, something that has apparently become a norm. 

The report also showed that at least 36,660 police officers receive less than a third of their pay after deductions, meaning that a police officer earning a gross salary of Sh40,000 takes home less than Sh13,333. 

Economists argue that statutory deductions, which came midway in the financial year under review, are to blame. 

“The statutory deductions that came midway, like SHA and the housing levy, automatically pushed many people beyond the two-thirds [limit]. These are a first charge to your pay slip,” Kitui Central MP Makali Mulu told People Daily. 

Wage projections 

Mulu, an economist, said Kenya lacks a proper projection of wages to inform taxes and deductions. 

Amid all this gloom, there are growing questions over the bromance between the COTU leadership and President Ruto’s government, a relationship that pundits claim has rendered the former giant umbrella trade union toothless. 

With COTU’s dwindling fortunes, particularly in membership and monthly remittances, the union’s secretary general, Francis Atwoli, has earned the wrath of workers for allegedly joining President Ruto’s “praise and worship” team at the expense of their welfare. 

“Who is there to speak for the Kenyan worker when their salaries and pay slips get raided endlessly with more and more deductions to the point they cannot be recognised anymore?” said a COTU official who declined to be named due to the sensitivity of the matter.