Uhuru Kenyatta raises minimum wage by 5pc

President Uhuru Kenyatta. FILE PHOTO | NMG 

By PATRICK LANG'AT

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Summary

• In his Labour Day speech read by Labour Cabinet Secretary Ukur Yatani, Mr Kenyatta on Tuesday also called for dialogue to solve ongoing strikes.
• The Kenya Association of Manufacturers (KAM) on Monday said the industry is yet to pick pace following last year’s setbacks, including high inflation rates, drought and prolonged electioneering.
• The Labour Day wage increment has become one of the biggest challenges to industry in Kenya, especially because it is not linked to productivity.

President Uhuru Kenyatta has announced a five per-cent rise in minimum wage.

In his Labour Day speech read by Labour Cabinet Secretary Ukur Yatani, Mr Kenyatta on Tuesday also called for dialogue to solve ongoing strikes.

The raise comes a day after Kenyan employers warned against another wage increase, arguing that such a move will hurt an economy that is just beginning to recover from last year’s battering.

The Kenya Association of Manufacturers (KAM) on Monday said the industry is yet to pick pace following last year’s setbacks, including high inflation rates, drought and prolonged electioneering.

READ: EDITORIAL: Wage rise must follow health of the economy

ALSO READ: Bill to curb workers’ strike in essential jobs

KAM chief executive Phyllis Wakiaga said any raise in minimum wage would be a big blow to  the industry, with possible negative impacts on the livelihoods of workers.

“A ceremonial wage increase will not help us to tackle the subject of poverty eradication in a sustainable way,” Ms Wakiaga said in a statement.

The Labour Day wage increment has become one of the biggest challenges to industry in Kenya, especially because it is not linked to productivity.