KAMPALA, Uganda — Former Deputy President Rigathi Gachagua has intensified his criticism of President William Ruto’s economic management and labour policies, accusing the government of eroding workers’ incomes through statutory deductions and calling for the creation of a rival labour movement to challenge COTU.
Speaking on Tuesday during the launch of the Kenya Labour Market and Worker Welfare Report 2026, Gachagua argued that economic growth has slowed significantly and questioned the government’s handling of official data.
“Our economy… has dipped from 7.6 per cent growth in 2021 to the current 4.6 per cent. Numbers do not lie,” Gachagua said.
He further claimed that government officials risk repercussions for publishing data that contradicts official narratives.
“A department in his own government has released figures… and he is saying those numbers are lying,” he said.
At the centre of Gachagua’s criticism is what he described as a growing burden on workers’ earnings, pointing to deductions such as Pay As You Earn (PAYE), the Social Health Authority (SHA), the National Social Security Fund and the housing levy.
“There was a time when a payslip meant dignity in Kenya. Now… 30 to 40 per cent of workers’ wages are gone through deductions,” he said.
He described the housing levy as “avoidable” and called for greater transparency in how the funds are managed, reflecting broader public debate over the policy’s implementation and oversight.
The remarks come against a backdrop of rising living costs, with households facing pressure from fuel prices, taxation and inflation, issues that have increasingly shaped political discourse ahead of the 2027 general election.
Gachagua also took aim at Francis Atwoli, accusing the long-serving trade union leader of aligning too closely with the government.
“We have a labour union led by a professional broker… he was seen dancing happily with the oppressor shouting two terms,” he said.
He called for the establishment of a new workers’ organisation to provide alternative representation, arguing that the current structure does not adequately defend employees’ interests.
“It is about time we created another alternative organization for workers against COTU so that workers have a choice,” Gachagua said, adding that he expected resistance from the Registrar of Trade Unions.
Other speakers at the event echoed concerns about workers’ welfare. Former Private Security Regulatory Authority director general Fazul Mohamed said deductions have increased without corresponding salary adjustments.
“the payslip is now a source of depression rather than happiness.”
Meanwhile, Kenya Labour Union Secretary General Okala urged the government to review proposed minimum wage adjustments, arguing that current increments fall short of addressing the cost-of-living crisis.
Kenya’s economic performance has moderated in recent years after a post-pandemic rebound, with official data showing slower growth amid fiscal tightening and global economic pressures.
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The government has defended its policies as necessary to stabilise public finances, including efforts to expand the tax base and fund social programmes.
However, critics argue that the cumulative effect of taxes and statutory deductions is placing disproportionate pressure on salaried workers, fuelling discontent and shaping political alignments.
Gachagua framed the debate as a defining issue for the next election cycle, urging workers to leverage their political influence.
“The fate of your payslips rest on your hands,” he told workers.
As Kenya moves closer to the 2027 polls, the intersection of economic policy, labour rights and cost-of-living pressures is expected to remain a central battleground, one that could redefine the relationship between government, trade unions and the country’s working class.
