Employers caution govt over plan to increase wages
KenGen MD Albert Mugo (left) chats with Federation of Kenya Employers executive director Jacqueline Mugo during the launch the Employer of the Year Awards at Crown Plaza in Nairobi on March 1, 2017. The Federation has called for tax rebates. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- Ms Mugo said FKE is glad that the government took up their proposal on tax reforms on basic food commodities.
Employers want the government to strike a balance between the pressure on the cost of living and the business environment, before increasing minimum wages on Labour Day.
The Federation of Kenya Employers says the cost of living often gets greater attention and called for innovative ways to address the issue such as having tax rebates.
This, the federation says, will enable employers not to pass on the costs to the public if the business environment is difficult or unfavourable.
TAX REFORMS
Recently, President Kenyatta hinted that workers would get wage increases this year, after a two-year dry spell.
Speaking during the 59th FKE Coast Branch annual general meeting at Reef Hotel in Mombasa, executive director Jacqueline Mugo said the government should come up with a rational agreement without a lose-lose situation or a win-lose situation on the issue of wages.
Ms Mugo said FKE is glad that the government took up their proposal on tax reforms on basic food commodities and the interim measures needed to be taken on importation of scarce basic food items into account.
“Like maize, because we believe this will ease costs of living for the lower income households, let us press on those issues.
"We hope that the government will approve the agreement in the proposed minimum wages for Kenyan workers we submitted last year,” she said.
