President Uhuru Kenyatta has declared an increase of the minimum wage by 12 percentage points.

Uhuru said that while delivering his speech during the celebration of World Labour day at the Nyayo National Stadium in Nairobi.

Uhuru said the increase was in recognition of the fact that the minimum wage has not been reviewed for the past three years.

Further, the government acknowledged the increased cost of living, with inflation that is currently hovering between 5 per cent and 6 per cent annually.

Uhuru made the declaration in full appreciation of the critical contribution that our Kenyan workers have made to our economy during hard times and to maintain Kenyan's purchasing power.

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"Recognizing because of all these challenges that we have not had a review of the minimum wage over the last three years, further acknowledging the increased cost of living, with inflation currently hovering between 5 and 6 per cent annually in that regard and in full appreciation of the critical contribution that our Kenyan workers have made to our economy during that very difficult times as a caring government, we find there is a compelling case to review the minimum wages so as to cushion our workers against further erosion of their purchasing power," Uhuru said.

"while also guaranteeing the competitiveness of our economy and in that context, I today declare an increase of the minimum wage by 12 percentage points."