BUSINESS & FINANCE

Employers Issue Warning after Uhuru Ordered 12% Increase in Minimum Wage

The Federation of Kenya Employers (FKE) has warned of a looming crisis in employment after President Uhuru Kenyatta’s directive to increase the minimum wage by 12 percent.

At a press briefing on Friday, May 6, the federation said that companies were still recovering financially from the effects of Covid-19.

FKE National President Dr Habil Olaka said that the increment should have been zero per cent and companies are given a further one year to recover.

“I think the right thing should have been done is to ensure that we give them (employers) maximum support. And if you ask me, the right figure should have been zero per cent. Let’s give it at least another one year then we see how they manage to pull themselves out of the difficult environment,” Dr Olaka said.

President Kenyatta on May 1, during the Labour Day celebrations, said the government had taken the decision to cushion Kenyan workers against the high cost of living that has ravaged the country’s economy.

“As a caring government, we find there is a compelling case to review the minimum wages so as to cushion our workers against further erosions, and in that effect, I today declare an increase of the minimum wage by 12% with effect from May 1, 2022,” Uhuru said on May 1.

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