President William Ruto on Thursday, May 1, 2025, led the nation in marking the 60th Labour Day celebrations at Uhuru Gardens, Nairobi.
The event, graced by thousands of workers and key government officials, including Prime Cabinet Secretary Musalia Mudavadi and COTU Secretary General Francis Atwoli, centred on the theme 'Self-Reliance in Production is the Key to Economic Growth.'
1. Teachers to be hired as education sector gets a boost
In his keynote speech, Ruto announced major strides in addressing the teacher shortage that has long plagued Kenya’s education system.
We are closing the teacher shortage gap by recruiting over 76,000 teachers in the last two years.
Additionally, Ruto revealed a Sh2.6 billion investment in teacher welfare, including Sh1.6 billion for capacity building and Sh1 billion for the promotion of teachers.
These measures aim to improve learning outcomes, stabilise employment, and promote professionalism within the sector.
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2. Relief for workers and retirees in Finance Bill 2025
A major announcement came in the form of the 2025 Finance Bill, which Ruto said had been carefully crafted to stimulate economic growth, deliver efficiency and expand opportunity.
Among the provisions, the President highlighted a significant shift in income taxation, stating that employers would now be required to apply tax reliefs at the point of PAYE calculation.
Notably, the bill also proposes tax exemptions on all pensions and gratuities for both public and private sector retirees. Empowering workers through Social Security
Ruto outlined progress made in national savings, revealing that a recent push to increase National Social Security Fund (NSSF) contributions has seen national savings grow rapidly.
In just two years, we have mobilised Sh280 billion in national savings, nearly equal to what was saved over six decades.
He committed to raising the savings-to-GDP ratio to 25% in the medium term as part of his Bottom-Up Economic Transformation Agenda.
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3. Housing and MSMEs delivering jobs and opportunities
The President lauded the Affordable Housing Programme, which he said had already created over 250,000 jobs spanning architecture, engineering, urban planning, masonry, carpentry, plumbing, and electrical work.
He further cited the Hustler Fund's impact on micro, small and medium enterprises (MSMEs), with over 25 million Kenyans accessing nearly Sh70 billion in credit.
4. Health coverage and labour rights
Ruto celebrated the rise in Kenyans registered under the Social Health Authority, now over 21 million, terming it a monumental leap toward Universal Health Coverage.
He also reaffirmed the constitutional right to unionise, directing the Ministry of Labour to ensure that even employees under outsourced contracts can join trade unions and benefit from collective bargaining.
5. Labour migration and dignity abroad
President Ruto recognised the role of Kenyan workers abroad, revealing that over 200,000 Kenyans secured overseas employment last year.
He said the new Labour Attaché Office in Berlin would be a strategic hub for accessing opportunities in the broader European Union.
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President Ruto concluded his speech by reaffirming the government's dedication to upholding labour rights, enhancing economic equity, and creating inclusive opportunities
6. Mudavadi on nationhood and economic strength
Prime CS Musalia Mudavadi lauded Kenyan workers for their role in nation-building, warning that institutional collapse, rather than terrorism, posed the greatest risk to a country.
“The biggest threat to any nation is not terrorism; it is when the institutions of that country collapse,” he said, while commending workers for propelling Kenya to become the sixth-largest economy in Africa.