Employers Raise Concerns After Govt Effects Payslip Changes for Workers

The Federation of Kenya Employers (FKE) has raised concerns over the increasing cost of doing business in Kenya following the government’s latest wage changes for workers.

In a statement released on Friday, May 8, FKE said many businesses in the country are struggling because of the high operational costs and new statutory requirements being introduced.

According to the employers’ body, companies from different sectors are facing pressure due to rising expenses, which are affecting business growth, investments, and job creation.

FKE explained that many employers are now finding it difficult to remain competitive because of the tough economic environment in the country.

The federation also asked the government to introduce policies that will support businesses, protect jobs, and encourage investment in Kenya.

FKE CEO Jacqueline Mugo said labour policies and salary adjustments should be handled through the proper institutions such as the National Labour Board and Wages Councils.

The employers’ organisation added that although businesses support workers’ welfare and better salaries, the government should also consider the economic challenges facing employers to ensure companies continue operating smoothly.

The concerns by FKE come a day after Labour Cabinet Secretary Alfred Mutua announced new salary increases for workers in Kenya.

On Thursday, May 7, Mutua confirmed that the government had approved a 12 per cent increase in general minimum wages and a 15 per cent increase for agricultural workers.

The Labour CS said the new changes are meant to improve workers’ earnings and help Kenyans deal with the rising cost of living.

“Today, I have signed two legal notices effecting a 12 per cent increase in general wages and 15 per cent in agricultural workers’ pay in line with the Labour Day announcement,” Mutua said.

The revised wage structure is expected to be published officially through a government gazette notice soon.