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Economy

Soaring minimum wage raising costs for firms, says FKE

Federation of Kenya Employers (FKE) chief executive Jacquline Mugo. FILE PHOTO | NMG
Federation of Kenya Employers (FKE) chief executive Jacquline Mugo. FILE PHOTO | NMG 

The continued increase of minimum wages is driving up the cost of doing business in Kenya, forcing some firms to relocate to neighbouring countries, the employers lobby has said.

The Federation of Kenya Employers (FKE) said the companies are getting attracted to Ethiopia, Egypt, Tanzania, Uganda, Malawi and Rwanda where the minimum wage is sustainable.

Jacqueline Mugo, the FKE chief executive, said the minimum wage in Kenya is about Sh12,600 compared to Egypt’s Sh6,500 and Ethiopia’s Sh5,000, for instance.

Central Organisation of Trade Unions (Cotu) secretary-general Francis Atwoli wants minimum wages increased from Sh12,600 to Sh15,372.