There has been increased significance of diversity, equity and inclusion (DEI) initiatives across Kenya. Despite Kenyan employers incorporating DEI initiatives in their governance and operations, there are still some challenges on the journey to equality. The issue of the gender pay gap is one of those challenges that needs to be addressed.
In 2023, a UN Women report found that women earned 21 percent less than men in the East and Southern Africa region. Specifically, women in Kenya earn 17.7 percent less than their male counterparts when considered at the hourly level and 31.3 percent when considered at the monthly level. The World Economic Forum in 2023 ranked Kenya 77th out of 146 countries in terms of promotion of gender pay equity, down from 57th in 2022. This means that we comparatively have a long way to go.
Despite the existence of legal provisions of the right to equal pay between women and men for equal work or work of equal value, implementation remains a daunting task because pay discrimination often goes undetected due to a lack of pay transparency. To ensure that gender pay equity is achieved, Kenya could opt to look at what other regions are doing.
In Europe, the European Council adopted the EU Pay Transparency Directive (the “Directive”) on March 30, 2023, introducing new rules to address pay discrimination and help close the gender pay gap. The directive includes provisions on compensation for victims of pay discrimination and penalties, including fines, for employers who break the rules.
EU employers with more than 250 employees are required to report annually on the gender pay gap in their organisation to the relevant national authority. For smaller EU organisations (initially those with over 150 employees), they will be required to report every three years..
In Kenya, the gender pay gap reporting has been cast into the limelight in recent years with investors and shareholders pushing for transparency and fairness in remuneration as part of sound corporate balance. It has also been propelled by the ESG agenda where gender pay gaps are reported as an aspect of sustainable development.
In light of this, some companies listed on the Nairobi Stock Exchange have opted to voluntarily disclose their gender pay equity measures.
To address the problem that pay discrimination, Kenya may in due course consider passing legislation to the effect that organisations annually publish their pay gap discrepancies.
As lawmakers continue to debate the regulation of gender pay disparity, employers can take practical steps to address this issue. These steps include assessing and reviewing their organisation's DEI policies, conducting an equal pay review to identify any potential gender pay gaps, and taking corrective action where necessary. Employers should also examine their recruitment, performance management, promotion, and compensation policies and procedures to ensure they are unbiased and equitable.
Additionally, raising awareness and building capacity among managers and human resource staff can help foster a culture that promotes equal opportunities for all. Finally, reporting on DEI initiatives, including gender pay gaps, in annual reports can hold organizations accountable for progress in this area.
Even as we celebrate women this month, let us remember that a campaign to eliminate gender pay disparities is not a one-time event but one which requires consistency.
The writer is a senior Associate at PwC.
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