FKE warns against high wages, insecurity

By Macharia Kamau

Kenya: Employers want the Labour Ministry to refrain from increasing the minimum wage during this year’s Labour Day celebrations. Through their lobby, the Federation of Kenya Employers (FKE), employers are also concerned about the rise in instances of insecurity.

This, they say, is becoming costly to businesses and poses serious threats to the economy. FKE Executive Director Jacqueline Mugo said minimum wage increments are made unilaterally against the guidelines agreed on between the State and employers. Minimum wage increments have become an annual tradition, with the announcement made during Labour Day celebrations. It has in the past been dismissed as a populist move on the Government’s side.

Ms Mugo noted that it is becoming costly for employers — making Kenya uncompetitive investment destination in comparison with her neighbours. “As Labour Day approaches, employers wish to reiterate their unending and hitherto unheeded call to the Government not to announce any changes in minimum wages during the Celebrations. This is what the parties agreed to several years ago,” said Mugo at a press conference in Nairobi yesterday. “FKE has on several forums with the social partners presented a case for this commitment to be honoured. Employers therefore do not expect and will not support any announcements on wages this year.”

Minimum wage has gone up every year for the last five years, with the increments made on Labour Day. On May 1, last year, President Uhuru Kenyatta raised the minimum wage by 14 per cent to Sh13, 674 from Sh11 995. “It is the employers position that the Government cannot base the review of minimum wages on inflation alone while ignoring the other economic factors,” said Mugo.

The Wage Guidelines of 2005 agreed on by both FKE and Government prescribes how employers are supposed to reward employees. Erastus Mwongera said insecurity has seen businesses incur huge additional costs to secure property and places of business due. He urged the government should adopt a ‘resolute approach to end the attacks’.