Uhuru hands workers wage increase
President Uhuru Kenyatta on Wednesday awarded lowest paid workers a 14 per cent pay increase, setting his government on a collision course with employers opposed to statutory wage thresholds. Mr Kenyatta said the new wage guidelines, which take effect immediately, were part of the government’s plan to protect workers and improve their welfare. “We acknowledge the constitutional obligation to workers and we’ll safeguard their rights,” Mr Kenyatta said at the Labour Day celebrations ceremony in Nairobi.
During their campaigns last year, the eight presidential candidates — keen to please both the unions and employers — avoided questions on the validity of minimum wages with Mr Kenyatta maintaining that his government would go for wages that vary with the cost of living. The Federation of Kenya Employers (FKE) stoked the old debate Wednesday when its chairman Erastus Mwongera asked the government to delink annual minimum wage reviews from Labour Day celebrations.
“Kenya has low productivity of labour and capital and this makes continued annual review of wages unsustainable,” Mr Mwongera said.... Read the full, comprehensive news article and discuss at Business Daily Africa