Public sector unions threaten industrial action over proposed Finance Bill

Kenya Universities Staff Union (KUSU) Secretary General, Charles Mukhwaya during a press conference in Nairobi on Sunday, May 7, 2023.[Denish Ochieng, Standard]

Public sector trade unions have threatened to take industrial action in response to the proposed Finance Bill 2023.

The bill seeks to increase statutory deductions on public servants, and if passed, the unions argue that it would further burden workers in the public sector whose salaries are already deducted at source.

In a statement read by Dr. Charles Mukhwaya, Secretary General of the Kenya Universities Staff Union (KUSU), the unions called on Parliament to reject the proposals and engage workers' representatives in the public service sector in negotiations to agree on the way forward.

"We are greatly concerned that the workers' representatives have not been consulted on any of these levies, hence a violation of the Constitution and relevant enabling legislation," Mukhwaya said.

The proposed Finance Bill 2023 carries tax proposals for the 2023/24 financial year and includes several measures that would increase deductions for Kenya's middle class.

For example, the bill proposes a 3 percent deduction from workers' basic salaries towards the National Housing Development Fund, to which the employer will make an equal contribution.

The bill also proposes to raise income tax for those earning at least Sh500,000 monthly from 30 percent to 35 percent.

The unions argue that these proposals are unfair and will place an undue burden on public sector workers.

The Kenya University Staff Union (KUSU), Universities Academic Staff Union (UASU), Kenya Union of Clinical Officers (KUCO), Kenya Medical Pharmacy and Dentistry Practitioners Union (KMPDU), Kenya National Union of Nurses (KNUN), and Kenya Union Of Domestic Hotels Educational Institutions Hospitals & Allied Workers (Kudheiha) were among the unions represented in the meeting.

The unions have demanded that the government fast-track negotiations and implement all pending Collective Bargaining Agreements (CBAs) to avoid industrial action and other measures provided for in the law.

"We demand that the government fast-track negotiations and implementation of Collective Bargaining Agreements (CBAs). Failure to do so will lead the public sector unions to consider industrial action and other measures provided for in the law," Mukhwaya added.