The Federation of Kenya Employers (FKE) has raised concerns over a proposed 7 percent wage increment for salaried workers, warning that it could further strain businesses already facing economic pressures.
Speaking at the Rift Valley branch’s 37th Annual General Meeting on April 24, FKE Chief Executive Officer Jacqueline Mugo said companies continue to grapple with high taxes, rising operating costs, reduced consumer purchasing power, and cases of restructuring and business closures, creating a difficult operating environment.
Mugo said the federation recognizes that minimum wages were last reviewed two years ago, but noted that businesses are currently under significant strain and require policymakers’ consideration.
“As the Federation of Kenya Employers, we are aware that minimum wages were last reviewed two years ago, but we’re also aware that businesses are struggling, and we will be appealing to the government to balance the interests of businesses and the employers,” she said.
FKE Rejects Wage Increase Proposal
She said the federation will be appealing to the government to strike a balance between the interests of employers and broader labour market needs.
Mugo also expressed concern about proposals to align minimum terms and conditions in the agricultural sector with those set by the General Wages Council, stating that the matter requires careful review.
“Of great concern to the Federation is the proposal to align the minimum terms and conditions of service in the agricultural sector with those that fall under what we call the General Wages Council,” Jacqueline Mugo added.
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In addition, the federation flagged delays in Value Added Tax (VAT) refunds, particularly affecting agribusinesses, noting that despite legal requirements to issue refunds within 90 days, many firms continue to experience prolonged delays that tie up working capital and disrupt operations.
The organization called on the Kenya Revenue Authority (KRA) to expedite verification processes and ensure the timely settlement of legitimate claims, reaffirming its commitment to working with the government and stakeholders to support a stable business environment, job creation, and economic growth.
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COTU Pushes For A 23% Minimum Wage Increase For Workers
On April 20, COTU Secretary-General Francis Atwoli called for a 23 percent increase in the minimum wage, saying Kenyan workers are under increasing pressure from inflation and a changing labor market.
Atwoli said the proposal is a necessary intervention to protect workers’ livelihoods, describing the Kenyan worker as the backbone of the economy, being squeezed by inflation and economic shifts.
He added that the demand for a 23 percent increase is a calculated necessity for survival.
Atwoli also cautioned employers and state agencies against undermining workers’ rights, particularly in the implementation of Collective Bargaining Agreements (CBAs).
