A new political divide is surfacing within Kenya’s labour movement following former Deputy President Rigathi Gachagua’s call for the establishment of a rival workers’ organization to the long-standing Central Organisation of Trade Unions (COTU). He criticized COTU for its failure to protect employees from what he described as punitive government policies.
During the launch of the Kenya Labour Market and Worker Welfare Report 2026 on May 5, Gachagua delivered a pointed critique of President William Ruto’s economic management, asserting that ordinary workers suffer the consequences of a slowing economy and increasing statutory deductions.
Citing alarming economic data, Gachagua noted that Kenya’s growth has plummeted from 7.6% in 2021 to just 4.6% today, framing this decline as evidence of faltering economic leadership. He suggested that government officials face repercussions for presenting data that contradicts the administration’s narrative, hinting at rising tensions over transparency within government ranks.
Central to his argument was the Kenyan payslip, which he described as a reflection of diminishing household incomes. Gachagua highlighted statutory deductions like Pay As You Earn (PAYE), the Social Health Authority (SHA), the National Social Security Fund (NSSF), and the controversial housing levy, claiming they now consume 30-40% of workers’ wages, leaving many struggling to cover daily expenses.
“There was a time when a payslip represented dignity in Kenya. Now it symbolizes strain,” he remarked, resonating with widespread public frustration over the escalating cost of living. He singled out the housing levy as particularly contentious, calling for greater accountability in its management.
As the government defends increased deductions as essential for funding social programs and reducing debt reliance, Gachagua contends these measures have emerged during a period of stagnant wages, exacerbating workers’ burdens.
He directed criticism at COTU’s Secretary General, Francis Atwoli, accusing him of compromising workers’ interests by aligning too closely with the government. “We have a labour union led by a professional broker,” Gachagua stated, reflecting a broader opposition effort to position themselves as champions of the working class ahead of the 2027 elections.
The proposal for an alternative labour organization could significantly alter Kenya’s industrial relations landscape, as COTU has traditionally held a dominant position. Gachagua acknowledged potential resistance from regulatory bodies but insisted that workers deserve representation choices.
Other speakers echoed Gachagua’s sentiments. Former PSRA Director General Fazul Mohamed warned that rising deductions without corresponding salary increases have transformed payslips into sources of depression rather than joy, emphasizing the working class’s pivotal role in the upcoming elections.
Okala also urged the government to reassess its minimum wage policies, arguing that recent increments have failed to keep pace with inflation and living costs.
As economic pressures mount, Gachagua’s initiative for a new workers’ movement illustrates a growing intersection between labour grievances and political mobilization. With approximately 15 months until the 2027 elections, the struggle over the Kenyan payslip is emerging as a central campaign issue, poised to reshape both the labour movement and the political landscape in the country.
