President William Ruto has announced that the government will ensure a six percent increase in the minimum wage to ensure that Kenyan employers are well compensated.
Speaking during the Labor Day celebrations at Uhuru Gardens, Nairobi, on May 1, Ruto asked the Labour Cabinet Secretary Florence Bore to have a sit down with the necessary committees and ensure that the directive is implemented.
Further, he asked the CS and the committee to later report to him how much that will translate to.
“I want to tell the labor CS to call the responsible committee and ensure that the minimum wage is increased by six percent and then come back and let me know how much that will accumulate to,
“As we commemorate Labour Day, let us rededicate ourselves to doing our best and contributing our utmost to enhance the welfare of every Kenyan worker,” said Ruto.
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Ruto on Industrial Action on Wages
At the same time, the head of state cautioned against industrial action led by political leaders over the financial moves being made by his administration. According to him, Kenya must live within its means in order to make more resources available to manage economic challenges.
Subsequently, Ruto announced that he has instructed the Ministry of Labor to activate wage councils outlined in the 2007 Labor Relations Act to negotiate minimum wages in different sectors peacefully.
“Looking ahead, to ensure industrial peace and manage disputes effectively, I’ve instructed the Ministry of Labor and Social Protection to activate multiple wage councils outlined in the 2007 Labor Relations Act.
“These include councils for seafarers, and protective, general, and agricultural wages. They will negotiate minimum wages in different sectors, enhancing conciliation, mediation, and industrial peace,” he said.
Also, the president indicated that the policies implemented by his administration had lowered the prices of basic goods, easing pressure on workers.
“As we continue on this trajectory, we need to appreciate that we must live within our means and manage the cost of doing business in this country, as a way of enhancing our overall competitiveness,’ he added.
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Earlier, Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli called for a 22.5 per cent pay increment for workers arguing that the value of the shilling was increasing.
“Anything the president says is law. We are asking him to give us a 22.5 percent increase in minimum wage or whatever he has in his pockets. Did I say anything wrong for asking that?
“Let me remind our economists that when our shilling was being devalued, we said that it did not reflect the true economic activity on the ground. Our formal economy is driven by the informal economy,” he said.
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