For over 3,500 employees: Kenyan company announces 15% salary increment
This story has significance for readers across Kenya and beyond.
- Kakuzi Plc signed a new Collective Bargaining Agreement with KPAWU covering the 2026/27 period
- More than 3,500 unionisable employees at the NSE-listed agribusiness firm stand to benefit from the wage increment
- The CBA follows negotiations led by Kakuzi's HR Manager and KPAWU general secretary Francis Atwoli
Nairobi-listed agribusiness firm Kakuzi Plc has concluded a new Collective Bargaining Agreement (CBA) with the Kenya Plantation and Agricultural Workers Union (KPAWU), awarding unionisable employees a 15% general wage increase effective January 2026.
The agreement covers the 2026/27 CBA period and splits the total increment across two financial years: an 8% pay rise in 2026, followed by a 7% increase in 2027.
More than 3,500 Kakuzi unionisable employees will benefit from the arrangement, with the 8% increment for this year due to be implemented soon and backdated arrears paid alongside September 2026 wages, pending registration at the Employment and Labour Relations Court.
What did Kakuzi MD say?
Kakuzi managing director Chris Flowers confirmed the wage increase and said the company remained committed to the welfare of its workforce even under a difficult operating climate.
"At Kakuzi, we appreciate the support and magnanimity extended by the Kenya Plantation and Agricultural Workers Union officials, led by General Secretary Dr Francis Atwoli, who drove a very hard bargain for our unionisable workers," Flowers said in a statement sent to TUKO.co.ke.
He added that both parties had reached common ground after sustained negotiations.
"We are pleased to have reached a mutual agreement on a 15% general wage increase. The 8% increment for the current year will be implemented shortly, with the outstanding arrears paid together with September 2026 salaries, subject to registration by the Employment and Labour Relations Court," he said.
Flowers also indicated that the firm would continue pursuing areas of mutual cooperation with KPAWU, including employee training and capacity development, beyond what is stipulated in the CBA.
Talks were conducted between a Kakuzi team headed by human resources manager Annastacia Mwenzwa and chief shop steward Patrick Muchuma, and KPAWU officials led by General Secretary Francis Atwoli and deputy general secretary Thomas Kipkemboi.
Which plan did Kakuzi announce?
The newly signed CBA coincides with a broader strategic push by Kakuzi, which recently announced an accelerated agricultural technology adoption plan.
As part of that initiative, the company has established a digital agricultural transformation department, led by a dedicated manager, to drive technology integration and support the firm's shift towards climate-smart agriculture.
Kakuzi is also stepping up product and market diversification efforts in response to growing international market risks affecting Kenyan export agriculture.
Source: TUKO.co.ke
Reporting originally appeared via TUKO. Read the full source for additional context.