Hello workers, distinguished guests, ladies and gentlemen. We gather here today at the Japa Kali Boys High School, Vihiga County, with a deep sense of gratitude and to honor the men and women who keep the engine of our economy in motion. The people without whose sacrifice, sweat, and toil, our nation would grind to a halt. We are here to celebrate the hands that mold our economy, the ingenious minds that keep innovating, and the resilient spirit that dares to imagine a transformed and better Kenya every day. These are our hardworking, diligent, and ever hopeful workforce. We are here to pay tribute to their resilience, to their discipline, their resourcefulness, and their indomitable belief in Kenya's transformation. To every worker across Kenya, I say today with profound appreciation that your effort is the foundation of our progress. Your well-being is the true measure of the state of our nation, and your dignity is a reflection of who we are and who we aspire to be as a people.
Fellow workers and citizens, today is equally a historic moment. For the first time in the 60 years of celebrating Labor Day in independent Kenya, this national celebration is being held outside the capital city of Nairobi for the first time. And not just outside the city of Nairobi, it is being held in this great county of Vihiga County. This is a significant and transformative step, a reflection of our commitment to reach, recognize, and directly involve workers across the country, including those in our rural economies whose contribution is no less vital to our nation's progress. As we do this in Nairobi, yes, we can do it in Vihiga. To the great people of Vihiga County, I extend my deepest gratitude for the warmth of your welcome and the generosity of your hospitality.
Ladies and gentlemen, from a historical perspective, Labor Day did not begin as a celebration the way we have it here today, but as a struggle, a struggle for the dignity of workers, for fair working conditions, and for just remuneration. That struggle, born in the 19th century at the height of the Industrial Revolution, remains as relevant today as it was then. Yet in our time, we are faced with an equally pressing challenge, the urgent task of creating meaningful employment opportunities for our people, especially our young people. Each year, no fewer than 800,000 Kenyans enter the labor market, while the formal sector is only able to absorb just about 150,000. From the very outset, this administration has pursued a deliberate and decisive three-pronged strategy to expand opportunities for all: Kazi kwa ground, kazi mitandao, and kazi majuu. In all that we do, in every policy we advance, and in every program we implement, one objective remains constant: to unlock opportunity, to empower our people, and to ensure that every Kenyan has a fair chance to work, earn, and fulfill their potential. Through targeted support for micro, small, and medium enterprises, the affordable housing program, the expansion of the digital economy, strategic investments in agriculture and value addition, strengthened education and skills training, the facilitation of overseas employment, and sustained infrastructure development, we are systematically laying the foundation for job creation and inclusive growth.
Ladies and gentlemen, inclusive growth and opportunity are anchored in the strength of our economy. The true measure of resilience is not found in a single statistic, but in the soundness of its fundamentals and the confidence it inspires. By every meaningful indicator, Kenya's economy is steady, robust, and resilient. Our GDP growth has held firm above 4.6% even in the face of global uncertainty and internal disruption. Inflation has been between 2.8% and 5.6% and in this April remains within the acceptable levels, particularly in the context of prevailing global pressures, while our foreign exchange reserves, standing at US dollars 13.3 billion, provide close to 6 months of import cover, safeguarding our macroeconomic stability. The Kenya shilling has stabilized at Kenya shillings 129 to the dollar for over 2 and a half years, reflecting renewed market confidence in our country. At the same time, key indicators from agriculture and construction to financial services continue to drive broad-based expansion, ensuring that growth is not only sustained, but shared. Sustained inflows from diaspora remittances, alongside continued investor confidence, further affirm that Kenya remains a trusted, competitive, and forward-looking destination. But most importantly, this resilience is being felt where it matters most, in the lives of our people. Across the country, jobs are being created in their thousands, a clear testament to the capacity of our economy to absorb labor and expand opportunity.
It is for this reason that I commend the Central Organization of Trade Unions for the choice of this year's Labor Day theme, and I quote, 'We support the Northern Link, accelerating trade through the Ironi-Malaba Highway transformation.' End of quote. The theme reflects a clear alignment with the government's strategic focus on infrastructure as a key driver of economic transformation, regional integration, and job creation. The Ironi-Mau Summit Road is not merely transforming infrastructure. It is reshaping livelihoods. As a vital corridor, it strengthens regional connectivity, streamlines the movements of goods and people, and unlocks new economic opportunities across our nation. Western Kenya is a major beneficiary of this road expansion. The traffic nightmare that has long confronted those traveling to this region during peak periods will soon be a thing of the past, replaced by smoother, faster, and more reliable connectivity. This will happen as soon as next year. Along the route, this road is unlocking employment for contractors, suppliers, and communities while opening doors for trade, tourism, and investment. At least 10,000 new jobs will be created through this project alone.
Additionally, we recently launched the extension of the standard gauge railway from Naivasha to Kisumu and finally to Malaba. A 262-kilometer corridor that will connect the industrial hub of Nairobi to the rich agricultural heartlands of the Western Rift Valley region, including Narok, Kericho, Nyamira, Kisumu, Vihiga, and Busia. We have also broken ground, as you all know, on the 107-km Kisumu-Malaba section of the SGR, completing nearly 1,000 km rail corridor from Mombasa to Malaba and establishing a critical link to the Malaba-Kampala line. Along this corridor from Mombasa to Malaba, we will establish the development of industrial parks, logistics hubs, and commercial centers. And let me speak while I am here in Vihiga, that your request that we have a modern transport station here in Vihiga, right here in Luanda, is already in the construction stage and we have the plan for it. We are going to commit 250 million to do a modern railway station in Luanda and we are going to add a transport logistics hub right there in Luanda. We will do the same in Nyamira as I announced because this railway is not just a transport corridor. It is an economic raising hub.
The expansion of the Rironi-Mau Summit road, which will ultimately extend to Malaba border, together with the onward extension of the SGR to Malaba, represents a new generation of future-shaping infrastructure. These are not just transport projects. They are strategic national investments designed to unlock the full economic potential of our regions and connect Kenya more deeply to the East African corridor. Now, what I need to say, my good friends, what we have in Vihiga and Western Kenya, the SGR and the road from Nairobi to Malaba, you may hear the first phase of the project will reach Mau Summit. I want to tell you that by the end of the year, we will have started the construction of the road from Mau Summit to Malaba. The road from Mau Summit to Malaba will go through Eldoret, Kakamega, and finally to Malaba. Another route will go through Kericho to Kisumu. I have heard some leaders saying that these roads and infrastructure are not important. I am very surprised. Those who are telling us that these roads are not important are people who live among us. They live here. When the roads and railways were being built, they did not say anything. They did not speak. Today, they are telling us that these roads are not important, railways are not important. I don't know what they want. What is important to them? I want to tell you that there are some people who are not very intelligent. Let me tell you, good people, this infrastructure we are building, their greatest impact will be felt in the lives of ordinary Kenyans. These projects will generate jobs, stimulate enterprise, and attract investment along the corridor, ranging from logistics and manufacturing to trade and services. They will create new centers of growth, expand incomes, and lay the foundation for shared prosperity.
Fellow citizens, another key pillar of our transformative infrastructure agenda is housing. Through the affordable housing program, we are not simply building homes. We are reshaping the face of urban development across our nation and turning the dream of home ownership into a living reality for thousands of Kenyan workers. Today, more than 273,000 affordable housing units are under construction across the country and over 9,000 have already been completed and we are handing over to deserving families. I was right here in Vihiga a month ago to hand over the first 200 units of completed housing units right here in Vihiga. Let me repeat. Here in Vihiga County, for example, six affordable housing projects are underway, some of them being procured. We are going to deliver 3,720 housing units, an investment of 7.5 billion shillings as phase one. At the same time, student accommodation projects, both ongoing and in the pipeline, will provide 4,540 bed spaces, backed by a further investment of 1.9 billion shillings right here in Vihiga. Meanwhile, as was said by our good governor, 10 markets are under construction. With another six more markets, governor, we have another six more markets that we are procuring so that we will end up with 16 markets right here in Vihiga County. This will deliver 3,470 market stalls, currently under construction, an additional 600 in the pipeline, supported by an investment of 1.5 billion for ongoing works, and 475 million shillings for planned and procured works. Taken together, the government's cumulative investment in Vihiga in housing and market infrastructure alone now exceeds 15 billion Kenya shillings. This scale of investment and opportunity is unfolding in each of our 47 counties. Never in the history of our nation has every corner of Kenya witnessed such breadth and depth of development. Critically, this progress is being driven not by unsustainable borrowing, but by the resources generated through the hard work, enterprise, and sacrifice of patriotic Kenyan workers. That is why, ladies and gentlemen, I salute you, all the Kenyan workers. Now, I want to tell you something. It is your effort, your productivity, and your belief in this country that is financing and delivering this transformation. And on this Labor Day, I say thank you to every Kenyan worker for not only believing in our country, but for actively building it, sustaining it, and shaping its future.
But beyond the walls we raise and the roofs we build lies an even greater story, the story of work, the story of dignity, and the story of opportunity. The affordable housing program has already created more than 640,000 jobs, and we are firmly on course to reach our target of 1 million jobs under this transformative national project. Our young people are at the heart of this progress, with nearly half of all the workers on these sites under the age of 35. Women hold up to 30% of these jobs while persons living with disability account for 5% of the workforce, which is well above industry norms and a clear testament of our commitment to inclusion. Importantly, up to 60% of the workforce on each site comes from the host county, ensuring that opportunity is not imported but grown locally so that wages circulate within communities, businesses thrive, and development is truly felt at the grassroots by the people. The transformation we are witnessing in the housing sector is not occurring in isolation. It reflects a broader, deliberate shift taking place across every sector of our country. Today, right here in Kali, I was here a month ago to start the 370 million market in Bali. I want to announce that next month, we will be coming to launch the construction of another 300 million shilling market right here in Kali.
As part of the transformation of our nation, it is the same transformation we see in the education sector, where in just 3 years, we have hired and recruited over 120,000 teachers, and we are delivering 23,000 new classrooms and 1,600 new laboratories are being built, particularly in underserved and rural areas. At the same time, we have introduced a student-centered funding model that places resources where they belong, truly, with the learners. I am sure my sorry, the Secretary General of KUPPET is right here. I am sure Mr. Oyu from Kenya National Union of Teachers is right here, and they can confirm that the huge shortage of teachers that was there in 2022, we have done something about it. The gap that existed in teacher numbers, we have hired 120,000 teachers, the single largest recruitment of teachers in Kenya in 3 years by any administration. That is a fact. It is the same recalibration that is underway in agriculture, where we have established a verified digital register of our 7.2 million farmers. By doing so, we have eliminated middlemen and dismantled cartels, ensuring that farmers directly benefit from government support and intervention, including access to subsidized fertilizer, boosting productivity, strengthening food security, and restoring fairness to the farming communities. It is the same spirit of transformation driving the MSME sector. Through targeted initiatives such as Nyota, we have brought over 121,000 young entrepreneurs into the structured business pipeline, equipping them not just to seek employment but to create it. And some 800,000 Kenyans who were previously locked out of the mainstream financial system have now rebuilt their credit profiles and can access higher microloans of up to 150,000 Kenya shillings through the bridge facility under the Hustler Fund, opening the door to opportunity, enterprise, and financial inclusion.
I say this without fear of any contradiction. 3 years ago, Mumias was in trouble. Sony was closed. Chemelil was in financial distress. Muhoroni was closed. Today, as I speak to you here, all those factories are working. The farmers who used to wait for 1 year, 6 months to be paid for their cane, today they are paid weekly. The workers who used to wait for government to come and sort out their salaries, today they are paid by factories. We have removed middlemen. We have driven out cartels, and we have made sure that farming puts money in farmers' pockets. And I say it is the same transformation we see in the overseas employment where through coordinated leadership, deliberate policy, and strong global partnerships, we are opening structured, safe, and dignified pathways for Kenyan workers to access opportunities abroad. Supported by a global labor market strategy, bilateral labor agreements with key international partners, and flagship initiatives such as Mkulima Majuu, Muhandisi Majuu, Dereva Majuu, Muguzi Majuu, and Mwalimu Majuu, over 583,000 Kenyans have already secured employment beyond our borders with their rights protected and their futures expanded.
It is the same expansion we are witnessing in the health sector, where through bold and decisive action, we have expanded health insurance coverage from as few as 8 million Kenyans just 3 years ago on the NHIF platform to nearly 30.8 million today under the Social Health Authority, bringing close to 65% of our population into the safety of care compared to just 16% under the defunct National Hospital Insurance Fund. This is not marginal improvements. It is a fundamental shift. One that is restoring dignity in times of illness, extending protection to millions of families, and accelerating our journey towards truly universal health coverage. That is why I have absolute confidence in the state of our nation and its trajectory. Let me commend the Kenya National Union of Teachers. Let me commend KUPPET and all the other stakeholders for sitting down with the Ministry of Health and ironing out the differences that were there. I want to assure you, as I did assure teachers when they came to see me, and I do so with all other public servants, that different from the scheme that you had initially, where teachers were only entitled to 900 hospitals under SHA, we are giving opportunity for teachers to seek treatment not in 900 hospitals, but in 9,000 hospitals across Kenya. We are expanding their cover. And we want to make sure that you can have access to level six hospitals across Kenya, not just one level six.
Do not be distracted by the noise. Do not be swayed by screaming headlines or by the chorus of alarm from those who trade in the currency of fear. They can see what is happening because they live here, as we all do, but they cannot bring themselves to acknowledge the change, the progress, and the transformation because to do so would strip meaning from the only narrative they perpetuate. Kenya is transforming. Kenya is changing right before our eyes. The noise may command attention, but it cannot and it will never change reality because the true story of our nation is not told in sponsored headlines. It is written in the daily actions of citizens like the 30.8 million Kenyans who have registered with SHA and the thousands who continue to do so daily.
Ladies and gentlemen, let me thank the Secretary General of COTU, our elder brother Francis Atwoli, for his unwavering advocacy for the Kenyan worker and his consistent support for government programs such as affordable housing. The government values this partnership and I want to take this opportunity to address some of the concerns raised on behalf of organized labor. On the first matter of deposit for affordable housing units that was raised with me, I am pleased to confirm that the commitment I made to COTU last year has been delivered. The deposit required of application for allocation of an affordable housing unit has now come down from 10% to 5%. This applies to every salaried Kenyan and the reduction has already been codified in our allocation framework. This deposit has been codified also in the affordable housing regulations which were passed in 2025 and have since been applied. Second, on the engagement of workers in the allocation of housing units, every salaried worker by law is eligible and qualified for an affordable housing unit. We only have one rule. One ID, one home. There should never be a situation where one worker gets more than one house when other workers have never gotten a single house. This means you can only benefit once from this program. The pathway to ownership is straightforward. Register on Bomayangu platform. Select a preferred unit. Complete the application and you will be considered for allocation. Many of the Kenyans who have been allocated homes are themselves trade union members, civil servants, teachers, nurses, and disciplined officers. The system does not ask whether an applicant carries a union card before allocating a home. It only asks whether you are a Kenyan worker who has stepped forward to claim what is rightfully yours. I therefore invite COTU and every affiliate union to actively mobilize their members to register on Bomayangu and apply. The State Department for Housing and Urban Development stands ready to work with COTU and all the other unions on a structured outreach to campaign and guide every interested worker through the application process. Where there are specific cases of workers who have applied and not been served, please bring them forward and we will resolve them.
On the recognition of construction workers as skilled professionals, I agree entirely. And I am pleased to note that the framework the Secretary General has asked for is already in place and is delivering results. The National Industrial Training Authority certifies trade qualifications across the construction sector. The National Construction Authority accredits and registers contractors and skilled workers. And through our recognition of prior learning program which we are running directly in the affordable housing program, we are formally certifying artisans whose skills were learned on the job. To date more than 2,000 artisans have been certified through this program including 180 women. These certifications open the door to formal contracts, higher wages, and the international labor markets the Secretary General has rightfully identified. Let me also confirm to the Secretary General of COTU that I agree that outsourcing must equally be brought into the ambit of making sure that they treat workers fairly and remunerate them fairly and that they too pay statutory government payments. On the right of workers enshrined in Article 41 of our Constitution, the right to fair labor practices, to organize and to bargain collectively, let me restate that these rights are not negotiable. And that this government will defend them without compromise. Every worker enjoys the full protection of our labor laws. And in close partnership with COTU, the Federation of Kenya Employers, and the Ministry of Labor, we will ensure that these protections are not merely written in law but they are consistently upheld and rigorously enforced in practice.
Regarding health care, it is equally important to acknowledge that the concerns we have recently seen from teachers and other public servants arise not from the rejection of SHA but from the transitional operational challenges as has been stated by the Secretary General. In the early stages, measures introduced to safeguard the financial sustainability of the fund such as temporary outpatient caps created unintended friction. In some cases, this led to unacceptable practices by a few facilities including demands for co-payments or even outright denial of service. However, let me assure all workers especially teachers and public officials that those challenges are being decisively addressed. The government has already withdrawn the restrictive tariff mechanisms and initiated a structured nationwide engagement with health care providers. These negotiations will culminate in updated agreements that guarantee a seamless zero co-payment. Let me say it again. Zero co-payment. Walk in, walk out experience for all teachers and public officers. I am equally pleased to inform our workers that following my directive to ratify the International Labor Organization Convention number 189 on decent work for domestic workers and ILO Convention number 190 on the elimination of violence and harassment in the world of work, the National Labor Board has completed the ratification process. The Ministry of Labor is now in the final stages of preparing the necessary instruments for submission to cabinet in accordance with the Treaty Making and Ratification Act and other applicable frameworks. My assurance to you Secretary General and the labor fraternity in Kenya is that as we go towards the first year to celebrate our Madaraka Day, we will have made sure that these instruments are in Parliament for final ratification.
Finally, in recognition of the sacrifice, resilience, and immense contribution of our workers to the growth and stability of our economy, and with the request that has been made by brother Atwoli and the labor fraternity, I am going to make some announcements on the increase. But before I make those announcements, what I need to say is that I thank you for welcoming us to Western Kenya. I assure you affordable housing here in Majengo. We need to have a plan to build 1,000 more units here in Vihiga in Majengo. We need to go to Luanda. We need to build 1,000 units in Luanda. We need to go to Sabatia. We need to build 1,000 units for the people of Sabatia. We need to build them. We need to go to Hamisi. People of Hamisi, are you there? We need to go to Hamisi. We need to have a plan for Hamisi and your MP Mr. Gimose. We need to go there to make sure that no part of this county will be left behind. I also want to assure you that I want to now state that we have paid everybody who we needed to pay. We have spent 90 million shillings to relocate the people who are there so that we can have space to build a modern stadium right here in Vihiga.
And it is a good conversation that we are having as a nation. We are having a conversation about transformation. Has it happened or has it not happened? That is a conversation we are having. Beautiful conversation. At least we are not having a conversation about ethnicities, we are not having a conversation about religion, we are not having a conversation about other things. We are having a conversation about the transformation of our nation. And I want to say this on this Labor Day. That is the reality. So we can have a conversation, we can have as many headlines as we want, but it will not change the reality. The reality is Kenya is changing. We can point to real SGR in the Commonwealth. Today it is being built in the Commonwealth. That is happening in our nation. And there is no amount of report, there is no amount of writing sponsored headlines that is going to change the reality. And I am determined working with all the leaders in the Republic of Kenya to change our nation. This nation had delayed for far too long. The transformation of our nation has taken too long. We shouldn't have been here. We should have been in a better place if we have had the courage to make the decisions that will transform our nation. I want to tell the people of Kenya, whatever it takes, whatever the price, I will make the decisions that will change Kenya because Kenya deserves it. We will be a first world country in our lifetime. It is our divine mission to make sure that we bring all the people of Kenya into one place. It is our divine mission, fellow leaders, that we work together.
I am pleased to announce a 12% increase in general wages and a 15% increase in agricultural wages to all Kenyan workers. Happy Labor Day. May we continue building this nation together for this and for future generations as we strive to transform Kenya into a developed economy within our lifetime. God bless you.
