Kenyan workers can now breathe a sigh of relief after fresh orders by President William Ruto over the proposed 6% minimum wage increase for civil servants which he directed in 2024.
Speaking during the 2024 national Labour Day celebrations, President Ruto directed the Cabinet Secretary for Labour to “put in place the necessary machinery” to consider an increase of not less than 6% in statutory minimum wages.
This directive was in line with the spirit of tripartite labour relations and due process as envisioned under the Labour Institutions Act, 2007.
Addressing workers in this year’s national Labour Day celebrations at the Uhuru Gardens Grounds, the Head of State noted that many employers in the country have not implemented his directive.
Ruto issues order on the implementation of 6% minimum wage increase
President Ruto, in turn, directed the Ministry of Labour to work with the Head of Public Service, Felix Koskei, to ensure that every employer implements the directive.
He also hinted at increasing the minimum wage further once the “next agreement is put in place.”
“When we agreed to enhance pay by 6% last year, there ensued a debate and some of the employers have not implemented the 6% we agreed on. It is not right it is not acceptable,” said Ruto.
“I am directing the ministry to work with the Head of Public Service to ensure that every employer makes sure that we implement the 6% increase of salary that we agreed upon last year and to quickly embark on the exercise to put together the next agreement so that we can take it forward in the next time.”
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Ruto at the same time announced that he has directed the Labor Ministry and all relevant agencies to ensure that even employees under outsourced contracts can freely join trade unions in the country and benefit from collective bargaining frameworks.
The Head of State’s 2024 directive on the 6% minimum wage increase for civil servants did not take effect until September 2024 when the reconstitution of the General and Agricultural Wages Councils was made through a gazette notice as required by law.
Atwoli and FKE differ
Following the gazettement which formally constituted the Wages Councils, the tripartite social partners, including the Federation of Kenya Employers (FKE), engaged in consultations and came to a consensus on the statutory minimum wage, which was published on October 7, 2024.
Upon the gazettement of the new statutory minimum wages, FKE issued an advisory to employers on October 14, 2024, urging them to review and implement the necessary wage adjustments in compliance with the revised minimum wages effective 1st November 2024.
However, Central Trate Union Organization (COTU) Secretary General Francis Atwoli earlier this year accused employers of being the stumbling block to the implementation of the proposed minimum wage increase.
According to Atwoli, FKE has dragged its feet leaving workers frustrated and unions up in arms.
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The COTU SG further revealed that union leaders are now demanding a 24 per cent increase in minimum wage, citing inflation, heavy taxation and stagnant pay for low-income earners.
“It took us four months to push them into signing the deal, and even then, they are yet to implement it,” Atwoli said during a shop stewards’ meeting in Nairobi.
“The President gave us a salary increase, but FKE has been taking us in circles, and we don’t know what dance they’re making us do. They want us to keep going to meetings and talks, even after the President made the declaration and involved all stakeholders.”
Employers give progress on Ruto’s Order
FKE, however, refuted claims by Atwoli, maintaining that the federation has consistently advocated for a fair and transparent process in reviewing the statutory minimum wage in Kenya.
The federation while giving an update on minimum wage implementation said that the establishment of the General and Agricultural Wages Councils is a crucial step in ensuring that all parties, including the government, employers, and workers’ unions, are properly consulted, and that any recommendations made regarding minimum wage increments are well-founded and fair.
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