Kakuzi Plc: Employees Receive 15% Wage Increase Following CBA Signing

• Kakuzi Plc employees will receive a 15% general wage increase following the signing of a Collective Bargaining Agreement (CBA) with the Kenya Plantation and Agricultural Workers Union (KPAWU).
• The CBA, effective January 2026, will benefit over 3,500 unionisable workers.
• Arrears for the 8% increase in the 2026 financial year will be paid alongside September 2026 wages, pending registration at the Employment and Labour Relations Court.

The company will continue to explore areas of mutual co-operation with the Kenya Plantation and Agricultural Workers Union, such as employee training and capacity development beyond the CBA, to maximise value.

Kakuzi Plc employees are set to receive a 15% general wage increase following the signing of a Collective Bargaining Agreement (CBA) with the Kenya Plantation and Agricultural Workers Union (KPAWU). The agreement, effective January 2026, will benefit over 3,500 unionisable workers. According to Kakuzi Plc Managing Director Chris Flowers, the company prioritizes the welfare of its human resource base, even in challenging operating environments. He emphasized that the wage increase is a result of mutual cooperation between Kakuzi and KPAWU officials.

The CBA signing comes after several rounds of negotiations led by Kakuzi's Human Resources Manager Annastacia Mwenzwa and Chief Shop Steward Patrick Muchuma, alongside KPAWU's General Secretary Francis Atwoli and Deputy General Secretary Thomas Kipkemboi. Flowers expressed appreciation for the support shown by KPAWU officials in driving a hard bargain for Kakuzi's unionisable workers.

The wage increase will be implemented soon, with arrears paid alongside September 2026 wages. However, the payment is pending registration at the Employment and Labour Relations Court. This highlights the importance of timely compliance with Kenyan employment laws, particularly in relation to the registration process. Lawyers advising Kakuzi Plc should take note of this development and consider its implications on the company's compliance with relevant regulations.

The CBA covers the 2026/27 period and includes an 8% increase for the 2026 financial year and a 7% increase for the 2027 financial year. This collective bargaining agreement is a crucial aspect of employment law in Kenya, ensuring fair wages and working conditions for unionisable workers.

The signing of the updated CBA demonstrates Kakuzi's commitment to prioritizing its human resource base. The company's efforts to maximize value through employee training and capacity development beyond the CBA are also noteworthy. Furthermore, this development underscores the significance of collective bargaining agreements in promoting fair labor practices and protecting workers' rights in Kenya.

As Kakuzi continues to navigate a challenging operating environment, the successful negotiation of the CBA serves as a testament to the company's ability to adapt and prioritize its workforce's well-being.

Lawyers advising Kakuzi Plc should watch for the implications of this wage increase on compliance with Kenyan employment laws, particularly in relation to timely payment of arrears and registration at the Employment and Labour Relations Court.

Source: Original reporting via [Source Name]