The Federation of Kenya Employers (FKE) has issued an update regarding the implementation of the proposed 6% minimum wage increase for workers following remarks made by Central Trate Union Organization (COTU) Secretary General Francis Atwoli.
FKE, in a statement on Friday, April 11, clarified its position in light of the recent comments made by Atwoli during a meeting earlier in the month.
The COTU Secretary General had asserted that employers are a stumbling block to the implementation of the minimum wage announced by the Ministry of Labour in a gazette report.
However, FKE 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.
“It is important to note that the Federation has actively engaged in ensuring that the relevant processes, including the constitution and operationalization of the Wages Councils, are followed in a lawful and effective manner to enable them to play their envisaged role,” read part of the statement.
“In accordance with the Labour Institutions Act, 2007, which mandates the establishment of the Wages Councils under Section 43, FKE has been vocal in calling for these Councils to be duly constituted before any discussions and decisions regarding the minimum wage increase can be made.”
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FKE issues progress on minimum wage increase
The federation while giving an update on minimum wage implementation said that the establishment of Wage 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.
President William Ruto, during the 2024 national Labour Day celebrations, 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 labor relations and due process as envisioned under the Labour Institutions Act, 2007.
However, employees had to wait until September 2024 when the reconstitution of the General and Agricultural Wages Councils was made and gazetted as required by law following the President’s directive in May.
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Following the Gazette Notice which formally constituted the Wages Councils, the tripartite social partners, including 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.
“FKE is committed to fostering industrial peace and a conducive business environment that promotes economic growth, job creation, and fair labor practices,” the statement adds.
Atwoli called out
The statement by FKE comes after Atwoli accused the federation of failing to honor Ruto’s directive on minimum wage increase.
According to the COTU SG, the federation has dragged its feet leaving workers frustrated and unions up in arms.
Atwoli 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.
He made the remarks as the country prepares to mark another Labour Day next month.
“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.”
The employer’s federation has challenge COTU to work together towards pushing for the implementation of the minimum wage increase “with professionalism, respect for the law, fidelity to the truth, and a focus on finding solutions that benefit everyone.”
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