Employers’ federation faces criticism for delaying wage increase promised by President Ruto

The Federation of Kenya Employers (FKE) has been accused of failing to honour a presidential directive on minimum wage increase, leaving workers frustrated and unions up in arms.

During the 2024 Labour Day celebrations, President Ruto directed that all employers implement a six per cent increase in the minimum wage to cushion workers against the rising cost of living and ensure they lead a dignified life.

The then Labour Cabinet Secretary Florence Bore was instructed to oversee the directive’s full implementation.

However, Central Organisation of Trade Unions (Cotu) Secretary-General Francis Atwoli now says the federation has dragged its feet, frustrating workers and trade unions.

“It took us four months to push them into signing the deal, and even then, they are yet to implement it,” Atwoli said during a shop stewards' meeting in Nairobi.

“The President gave us a salary increase, but FKE has been taking us in circles, and we don’t know what dance they’re making us do. They want us to keep going to meetings and talks, even after the President made the declaration and involved all stakeholders.”

As the country prepares to mark another Labour Day, Atwoli revealed that union leaders are now demanding a 24 per cent increase in minimum wage, citing inflation, heavy taxation and stagnant pay for low-income earners.

“When we start planning how workers can finally get better pay, FKE holds press conferences saying the economy can’t support it and that industries are shifting from Kenya. This is meant to silence the government,” he said.

The Cotu boss also questioned FKE’s relevance during Labour Day celebrations, saying it had failed to support government-led efforts to improve workers’ welfare.

“We told FKE to air its policies for workers. Labour Day is the right time for that, but FKE is troubling us over something the President already directed,” Atwoli said.

He dismissed claims that companies were exiting Kenya due to the wage demands, insisting the country remains a regional economic hub.

“Not all companies have left. Kenya is a regional giant. Tanzania, Uganda, Rwanda and others want a piece of us. We have everything,” he said.

Before the 2024 announcement, the last minimum wage increment was in 2022 under former President Uhuru Kenyatta, who approved a 12 per cent raise, translating to Sh1,628.64 and pushing the minimum wage to Sh15,200.64.

Atwoli also raised concerns over the unregulated use of social media and artificial intelligence, calling for government intervention.

“Without laws to limit access to social media and AI, we are seeing dangerous trends. It’s time the government intervened,” he said.

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