More than 3,500 unionisable employees at listed agribusiness firm Kakuzi Plc are set to receive a 15% general wage increase following the signing of a new Collective Bargaining Agreement (CBA) with the Kenya Plantation and Agricultural Workers Union (KPAWU).
The wage increase will be spread across the 2026 and 2027 financial years, with workers receiving an 8% increment in 2026 and a further 7% increase in 2027.
The new deal comes after a series of negotiations between Kakuzi management and KPAWU officials, as the two sides sought to agree on better terms for employees while taking into account the company’s operating environment.
Kakuzi Managing Director Chris Flowers said the company remained committed to the welfare of its employees, despite the challenges facing the agricultural sector.
“At Kakuzi, we appreciate the support and magnanimity extended by the Kenya Plantation and Agricultural Workers Union officials, led by General Secretary Dr Francis Atwoli, who drove a very hard bargain for our unionisable workers,” Flowers said.
The company said the 8% increase for the current year will be implemented soon, with workers expected to receive arrears alongside their September 2026 wages, subject to registration of the agreement at the Employment and Labour Relations Court.
The agreement was negotiated by Kakuzi officials led by Human Resources Manager Annastacia Mwenzwa and Chief Shop Steward Patrick Muchuma, alongside KPAWU officials led by General Secretary Francis Atwoli and Deputy General Secretary Thomas Kipkemboi.
Beyond wages, Kakuzi and the union are also expected to explore areas of cooperation in employee training and capacity development. The company said such efforts would help workers build new skills while supporting productivity.
The wage deal comes at a time when Kakuzi is making major changes to how it runs its agricultural operations. The firm has stepped up its adoption of agricultural technology as it seeks to improve efficiency and prepare for the changing demands of farming.
It recently established a Digital Agricultural Transformation Department to lead technology adoption across its operations. The department is expected to support the company’s shift towards climate-smart agriculture.
Kakuzi is also pursuing product and market diversification as it faces growing risks in international markets and the wider Kenyan export agriculture sector.
For its workers, however, the immediate focus is simpler: a bigger payslip. The 15% increase offers some breathing room at a time when the cost of keeping households running continues to test many workers’ budgets.
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