Will salary increase really better livelihoods?

By JOHN KIMANI 

  

Fuel is the heartbeat of Kenya’s economy. When petrol prices rise, transport costs surge, and every commodity that relies on movement from farm to market becomes more expensive. The April fuel hike translated directly into higher food prices:  

-Eggs:From KSh 12–14 each to KSh 18–20 

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-Tomatoes (nyanya):From KSh 80–100 per kilo to KSh 150–180 

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-Onions: From KSh 70–90 per kilo to KSh 130–160

If the cost of basic ingredients rises faster than wages, isn’t the pay increase swallowed before it reaches the table? On paper, a 12–15% wage increase looks promising. But when inflation eats into food, transport, and rent, how much of that increment survives? If eggs rise by nearly 40%, tomatoes by 50%, and onions by 70%, doesn’t the wage increase evaporate before it reaches the table?  

COTU’s call for a 23% wage increment reflects this reality. The union argues that anything less is inadequate in the face of runaway inflation. Yet even at 23%, can wages truly outpace the relentless climb of commodity prices driven by fuel costs?

Contrast this with the former President the late Mwai Kibaki's government. When salaries were adjusted upwards in the 2000s, workers felt the difference. Why? Because commodities were relatively cheap, fuel prices were stable, and inflation was low. A pay rise meant more food on the table, school fees paid on time, and savings tucked away.  

Isn’t it telling that during Kibaki’s tenure, wage increments were “sweet” because the economy allowed workers to stretch their shillings? Today, the same increments feel bitter, eroded by inflation before they can translate into better livelihoods.

Economically, wage increments without price stabilization are like pouring water into a leaking bucket. The numbers rise, but the value drains away. Fuel hikes inflate transport costs, which inflate commodity prices, which erode the purchasing power of every shilling earned. Isn’t this the paradox of wage policy in an inflationary economy—that workers celebrate increments, but markets quietly erase them?

Street food, once the cheapest lifeline for students, boda riders, and matatu passengers, is under siege. The boiled egg with kachumbari, once a symbol of affordability, now mirrors the struggle of inflation. Tomatoes have become gems, onions luxuries, and eggs survival tokens. Isn’t this more than a food story—it’s a reflection of how economic shocks ripple into daily life?

President Ruto’s Labour Day announcement raises hope, and COTU’s demand for a 23% increment raises pressure. But the question lingers: will salary increases really better livelihoods, or will inflation—fueled by rising petrol costs—always run faster than our pay slips? 

The Kibaki era showed that wage increments can transform lives when commodities are affordable. Today, the challenge is not just raising salaries, but taming inflation so that pay rises translate into real prosperity.