FKE On The Stumbling Block To The Implementation Of The Minimum Wage Gazetted By The Ministry Of Labour

The Federation of Kenya Employers (FKE) wishes to clarify the position in light of recent comments made by COTU Secretary General Dr. Francis Atwoli. During a meeting with shop stewards, Dr. Atwoli asserted that employers are a stumbling block to the implementation of the minimum wage as gazetted by the Ministry of Labour.

Contrary to these allegations, FKE has consistently advocated for a fair and transparent process in reviewing the statutory minimum wage in Kenya. The Federation has actively engaged in ensuring that the relevant processes, including the constitution and operationalization of the Wages Councils, are followed in a lawful and effective manner to enable them to play their envisaged role.

In accordance with the Labour Institutions Act, 2007, which mandates the establishment of the Wages Councils under Section 43, FKE has been vocal in calling for these Councils to be duly constituted before any discussions and decisions regarding the minimum wage increase can be made. The establishment of these Councils is a crucial step in ensuring that all parties, including the Government, employers, and workers' unions, are properly consulted, and that any recommendations made regarding minimum wage increments are well-founded and fair.

His Excellency Dr. William Samoei Ruto, President of the Republic of Kenya, during the 2024 National Labour Day celebrations, directed the Cabinet Secretary for Labour to "put in place the necessary machinery" to consider an increase of not less than 6% in statutory minimum wages. This direction was in line with the spirit of tripartite labour relations and due process as envisioned under the Labour Institutions Act, 2007.

It was not until September 2024 that the reconstitution of the General and Agricultural Wages Councils was made and gazetted as required by law, despite the President's directive in May 2024. Following the Gazette Notice, which formally constituted the Wages Councils, the tripartite social partners, including FKE, engaged in consultations and came to a consensus on the statutory minimum wage, which was published on 7th October 2024.