Employers rule out wage increase

jacqueline mugo

Federation of Kenyan Employers Executive Director Jacqueline Mugo. FILE PHOTO | NMG

Workers are likely to miss out on a pay raise for the fourth year in a row after talks between trade unions, Federation of Kenya Employers (FKE), and the Labour Ministry through the Wages Council collapsed, a top official has said.

FKE executive director Jacqueline Mugo said employers will not increase the minimum wage on May 1, citing depressed earnings due to hard economic times, including high cost of operation, for most firms.

Workers through their trade unions have been pushing for increased wages, but FKE says the government should maintain the status quo to allow the economy to recover.

The government last announced a five percent increment in the minimum wage to cushion workers against inflation in 2018. The raise in pay for workers has never been effected since then.

“We are trying to get workers to see the reason that this is not the time to increase minimum wages but they have refused. They are just making crazy demands,” said Ms Mugo in an interview with the Business Daily Friday.

“An increase is ill-advised. So far our discussions have hit a snag,” said Mr Mugo.

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