Kenya Power staff get 24 per cent pay rise

Kenya Power Managing Director Ben Chumo speaks during the firm’s media briefing at the Intercontinental Hotel in Nairobi on October 24, 2014. Kenya Power unionisable employees will earn 24 per cent higher in two years following a collective bargaining agreement signed on December 23, 2014 between the utility firm and their union. PHOTO | SALATON NJAU |  NATION MEDIA GROUP

In Summary

• The Kenya Electrical Trades and Allied Workers’ Union (Ketawu) officials also managed to convince the employer to gradually absorb the 1,200 staff on temporary terms over the period.
• The increment which will be implemented in two phases of 12 per cent each, stipulates a 12 per cent rise in basic salary, 10 per cent more on housing allowance and a 28 per cent jump in medical allowance earning the lowest paid employee Sh29,261 after 2016.

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Kenya Power unionisable employees will earn 24 per cent higher in two years following a collective bargaining agreement signed Tuesday between the utility firm and their union.

The Kenya Electrical Trades and Allied Workers’ Union (Ketawu) officials also managed to convince the employer to gradually absorb the 1,200 staff on temporary terms over the period.

KP chief executive Ben Chumo attributed the rise to growth in the company’s profit that hit Sh10.2 billion in the 2013/2014 financial year.

Allaying fears of a bloated wage bill, Mr Chumo said the move will enhance motivation levels for the human resource capacity ahead of huge commitments.

“We are not raising the wage bill as such since most of the management employees who earn higher are going to retire and the absorption of the temporary staff will replace those retiring on almost 1:1 ratio hence we are likely to record a drop in wage bill.

We will keep our promise and hope that the union will commit to help us achieve our huge commitments from the New Year,” he said.

FUTURE PROJECTS
The company has the task of absorbing and distributing the governments planned 5000MW power generation.

Among the projects lined up by the electricity distributor include street lighting, improving power stability in the region and the 12,000 kilometre line in the Last Mile Connectivity Programme recently financed by the African Development Bank.

The increment which will be implemented in two phases of 12 per cent each, stipulates a 12 per cent rise in basic salary, 10 per cent more on housing allowance and a 28 per cent jump in medical allowance earning the lowest paid employee Sh29,261 after 2016.

Ketawu national secretary-general Ernest Nadome, who signed on behalf of the union, termed the agreement “a good Christmas gift for the employees.