Kenya employers oppose wage increment
The current minimum wage is too high for a country that has been ranked 108 out of 132 on global business competitiveness, the Federation of Kenya Employers (FKE) has said, adding its voice to the growing resistance among local businesses over the proposed pay hikes for the country’s lowest paid workers.
Terming the Government’s plan to increase the wage as “untenable” and “unrealistic”, FKE executive director, Jacqueline Mugo, vowed to fight the salary rise, saying the new adjustments were being implemented haphazardly.
The high wages, she added, had also contributed to the poor business environment.
“The current wage increase was done arbitrarily without due consultation. We cannot manage enterprises with wage increments implemented each year,” she said while speaking to Rift Valley branch members in Nakuru during their annual general meeting.
Lower grade artisans and unskilled workers, who are targeted by the proposed salary increments, form the bulk of employees for a majority of businesses, especially in manufacturing and agriculture across the country.
The government through Labour minister, John Munyes, announced last week that it will increase the minimum wage, which currently stands at Sh7,578 per month for urban workers by 10 per cent effective May 1 this year, to coincide with the International Labour Day celebrations.
Incidentally, even with the current $79 average pay per month for Kenyan workers, they earn more than their global counterparts in some of the more developed countries, including India ($68), Nigeria ($45), and Madagascar ($28).
“We pay our workers twice more in wages than Tanzania, while Uganda has not had a minimum wage review in the past 20 years. Other East African States have not even set a minimum wage,” she said.
She added that, ideally, minimum wage reviews should be done at most once every two years.
On Wednesday, Ms Betty Maina, chief executive Kenya Association of Manufacturers, warned that salary hikes could force employers to cut jobs and freeze employment in the future.
The proposed increment comes in the wake of spiralling inflation in the country, which stands at 9.6 per cent and which has made food prices to shoot up.
