Nakumatt set for higher wage bill in 11pc pay raise deal with workers union

Kenya’s largest retail chain Nakumatt faces increased staff costs after it signed a fresh 11 per cent pay raise deal with workers for the next two years.

The retailer’s 5,000 unionisable employees also secured higher housing and transport allowances as well as overtime pay, according to the two-year collective bargaining agreement (CBA) backdated to April. Other benefits include health insurance and new maternity leave and annual leave days.

The deal between the Kenya Union of Commercial, Food and Allied Workers (Kucfaw) and Nakumatt Holdings was signed on Wednesday.

“The company and the union agree and enter into foregoing agreement negotiated between them at the joint negotiating committee,” reads a labour document signed by the two parties.

The pay raise is, however, lower than the 2014 CBA that gave supermarket chain’s 4,500 unionisable workers a 12 per cent raise for two consecutive years.

“It is in the public domain that the company is going through tough financial times. We tried our level best to get them a pay increase.

“We are hopeful that the company will have better days in future and that will allow us to bargain for better terms for our members,” said Kucfaw secretary-general Boniface Kavuvi.

Nakumatt — Kenya’s largest retailer in terms of revenue with a network of 63 branches — has over the past two years recorded losses that have force it to restructure and cut costs to support its profitability.

Cashiers working at the supermarket will now earn a minimum wage of Sh25,119 and 15 per cent of the basic salary as well as Sh3,500 in house allowance.

Shop assistants, general clerks, shop assistants, cooks and messengers will earn basic pay of Sh20,484, Sh17,272, Sh15,186, 12,231 and Sh11,355 respectively, in addition to the house allowance.