diff --git a/bin/keto_test_e2e.sh b/bin/keto_test_e2e.sh
index e84b3af..88e731b 100755
--- a/bin/keto_test_e2e.sh
+++ b/bin/keto_test_e2e.sh
@@ -2,7 +2,7 @@
 
 [[ "${E2E}" = "true" ]] || exit 0
 
-WORKINGDIR="${GOPATH}/src/github.com/UKHomeOffice/keto"
+working_dir="${GOPATH}/src/github.com/UKHomeOffice/keto"
 
-${WORKINGDIR}/bin/keto_test_e2e_setup.sh
-${WORKINGDIR}/bin/keto_test_e2e_exec.sh
+${working_dir}/bin/keto_test_e2e_setup.sh
+${working_dir}/bin/keto_test_e2e_exec.sh
diff --git a/bin/keto_test_e2e_exec.sh b/bin/keto_test_e2e_exec.sh
index f6a92a0..0359ad8 100755
--- a/bin/keto_test_e2e_exec.sh
+++ b/bin/keto_test_e2e_exec.sh
@@ -4,24 +4,37 @@
 : ${KETO_CLOUD_PROVIDER:?"[ERROR] Environment Variable 'KETO_CLOUD_PROVIDER' has not been set"}
 : ${KETO_SSH_KEY_NAME:?"[ERROR] Environment Variable 'KETO_SSH_KEY_NAME' has not been set"}
 : ${TEST_NETWORK_IDS:?"[ERROR] Environment Variable 'TEST_NETWORK_IDS' has not been set"}
+KETO_ASSETS_DIR=${KETO_ASSETS_DIR:-${PWD}}
 
 set +e
 
-WORKINGDIR="${GOPATH}/src/github.com/UKHomeOffice/keto"
-KETO_ASSETS_DIR=${KETO_ASSETS_DIR:-${PWD}}
+working_dir="${GOPATH}/src/github.com/UKHomeOffice/keto"
+kube_labels=("customlabel1=customvalue1" "label2=value2")
 
-function generate_kube_config() {
+function generate_kube_config () {
+    echo "[INFO] Generating Kubernetes config"
     API_ADDR="https://$(aws cloudformation describe-stacks --stack-name keto-${CLUSTER_NAME}-elb --query "Stacks[0].Outputs[?OutputKey=='ELBDNS'].OutputValue" --output text)"
     mkdir -p ~/.kube/
     kubeadm alpha phase kubeconfig client-certs --client-name kubernetes-admin --organization system:masters --server ${API_ADDR} --cert-dir ${KETO_ASSETS_DIR} > ~/.kube/config
 }
 
-function cleanup() {
+function cleanup () {
     echo "[INFO] Attempting to delete keto cluster '${CLUSTER_NAME}'"
     keto --cloud ${KETO_CLOUD_PROVIDER} delete cluster ${CLUSTER_NAME}
 }
 
-function run_e2e_test() {
+function check_labels () {
+    echo "[INFO] Checking if label $1 is present on $2 nodes"
+    label_count=$(kubectl get nodes -l $1 -o json | jq '.items | length')
+    if [[ $label_count -ne $2 ]]; then
+        echo "[FAIL] Label check failed! Label $1 was found on ${label_count} nodes, expected $2 nodes."
+        return 1
+    else
+        echo "[PASS] Label $1 was present on ${label_count} nodes."
+    fi
+}
+
+function run_e2e_test () {
     echo "[INFO] Creating keto cluster with 1 master pool (5 nodes), 1 compute pool (1 node)..."
     keto --cloud ${KETO_CLOUD_PROVIDER} create cluster ${CLUSTER_NAME} \
         --assets-dir ${KETO_ASSETS_DIR} \
@@ -29,27 +42,31 @@ function run_e2e_test() {
         --pool-size 1 \
         --machine-type t2.micro \
         --ssh-key ${KETO_SSH_KEY_NAME} \
-        --networks ${TEST_NETWORK_IDS} || return
+        --networks ${TEST_NETWORK_IDS} \
+        --labels ${kube_labels[0]} || return
 
-    # TODO: Modify once Keto adds capability to auto generate config using the client cli
-    echo "[INFO] Generating Kubernetes config"
+    # TODO: Modify on approval of Keto PR #99
     generate_kube_config || return
 
-    echo "[INFO] Executing kuberang test to validate cluster health"
-    ${WORKINGDIR}/bin/kuberang.sh 180 || return
+    ${working_dir}/bin/kuberang.sh 180 || return
 
-    echo "[INFO] Keto attempting to create compute pool 'compute1'"
+    check_labels ${kube_labels[0]} 6 || return
+
+    echo "[INFO] Keto attempting to create compute pool 'compute1' with 2 nodes..."
     keto --cloud ${KETO_CLOUD_PROVIDER} create computepool compute1 --cluster ${CLUSTER_NAME} \
-        --pool-size 3 \
+        --pool-size 2 \
         --machine-type t2.micro \
         --ssh-key ${KETO_SSH_KEY_NAME} \
-        --networks ${TEST_NETWORK_IDS} || return
+        --networks ${TEST_NETWORK_IDS} \
+        --labels ${kube_labels[1]} || return
 
     echo "[INFO] Keto attempting to delete compute pool 'compute0'"
     keto --cloud ${KETO_CLOUD_PROVIDER} delete computepool compute0 --cluster ${CLUSTER_NAME} || return
 
-    echo "[INFO] Executing kuberang test to validate cluster health"
-    ${WORKINGDIR}/bin/kuberang.sh 180 || return
+    ${working_dir}/bin/kuberang.sh 180 || return
+
+    check_labels ${kube_labels[0]} 7 || return
+    check_labels ${kube_labels[1]} 2 || return
 
     cleanup
 }
diff --git a/bin/keto_test_e2e_setup.sh b/bin/keto_test_e2e_setup.sh
index 48a391f..bdbd1fa 100755
--- a/bin/keto_test_e2e_setup.sh
+++ b/bin/keto_test_e2e_setup.sh
@@ -1,11 +1,14 @@
 #!/bin/bash -ex
 
-WORKINGDIR="${GOPATH}/src/github.com/UKHomeOffice/keto"
-KUBE_VERSION=`grep -oP 'DefaultKubeVersion\s*=\s*"\K.*?(?=")' ${WORKINGDIR}/pkg/constants/constants.go`
 KETO_ASSETS_DIR=${KETO_ASSETS_DIR:-${PWD}}
+working_dir="${GOPATH}/src/github.com/UKHomeOffice/keto"
+kube_version=`grep -oP 'DefaultKubeVersion\s*=\s*"\K.*?(?=")' ${working_dir}/pkg/constants/constants.go`
 
 mkdir -p /go/bin
 
+# Install jq for keto labels test
+apt-get update && apt-get install -y jq
+
 # Get keto dependencies
 curl -s https://glide.sh/get | sh
 glide install
@@ -17,10 +20,10 @@ go get -u github.com/cloudflare/cfssl/cmd/...
 curl -LO https://bootstrap.pypa.io/get-pip.py && python get-pip.py && pip install awscli
 
 # Get kubectl, kubeadm, kuberang
-curl -LO https://storage.googleapis.com/kubernetes-release/release/${KUBE_VERSION}/bin/linux/amd64/kubectl
+curl -LO https://storage.googleapis.com/kubernetes-release/release/${kube_version}/bin/linux/amd64/kubectl
 chmod +x kubectl && mv kubectl /usr/local/bin/kubectl && kubectl help
 
-curl -LO https://storage.googleapis.com/kubernetes-release/release/${KUBE_VERSION}/bin/linux/amd64/kubeadm
+curl -LO https://storage.googleapis.com/kubernetes-release/release/${kube_version}/bin/linux/amd64/kubeadm
 chmod +x kubeadm && mv kubeadm /usr/local/bin/kubeadm && kubeadm version
 
 curl -LO https://kismatic-installer.s3-accelerate.amazonaws.com/kuberang/latest/kuberang-linux-amd64
@@ -28,7 +31,7 @@ chmod +x kuberang-linux-amd64 && mv kuberang-linux-amd64 /usr/local/bin/kuberang
 
 # Generate assets (cert files) required for cluster build and kube config generation
 mkdir -p ${KETO_ASSETS_DIR}
-${WORKINGDIR}/bin/create_ca_files.sh
+${working_dir}/bin/create_ca_files.sh
 ln -s ${KETO_ASSETS_DIR}/kube_ca.crt ${KETO_ASSETS_DIR}/ca.crt
 ln -s ${KETO_ASSETS_DIR}/kube_ca.key ${KETO_ASSETS_DIR}/ca.key
 
diff --git a/bin/kuberang.sh b/bin/kuberang.sh
index 961b3b9..238baf3 100755
--- a/bin/kuberang.sh
+++ b/bin/kuberang.sh
@@ -4,11 +4,12 @@
 exec 5>&1
 
 # Poll for API to be available
-MAX_RETRIES=${1:-30}
-WAIT_TIME=5
-RETRIES=0
+max_retries=${1:-30}
+wait_time=5
+retries=0
 
-echo "Waiting for Kube API readiness..."
+echo "[INFO] Executing kuberang test to validate cluster health"
+echo "[DEBUG] Waiting for Kube API readiness..."
 
 PREP_STATE="Checking Kube API availability."
 while true ; do
@@ -22,13 +23,13 @@ while true ; do
     fi
   fi
 
-  RETRIES=$((RETRIES + 1))
-  if [[ ${RETRIES} -eq ${MAX_RETRIES} ]]; then
+  retries=$((retries + 1))
+  if [[ ${retries} -eq ${max_retries} ]]; then
       echo "[ERROR] Max timeout reached. Failed on step: ${PREP_STATE}"
       exit 1
   else
-      echo "[INFO] Attempt #${RETRIES} of #${MAX_RETRIES}: Kube API not yet available, sleeping for ${WAIT_TIME} seconds..."
-      sleep ${WAIT_TIME}
+      echo "[INFO] Attempt #${retries} of #${max_retries}: Kube API not yet available, sleeping for ${wait_time} seconds..."
+      sleep ${wait_time}
   fi
 done