The Federation of Kenya Employers (FKE) has now clarified how companies and organisations across the country are expected to implement the salary adjustments announced by President William Ruto during the Labour Day celebrations.
Speaking on Monday, May 4, FKE Chief Executive Officer Jacqueline Mugo explained that employers will mainly focus on adjusting the statutory minimum wage and not all salaries across every level of employment, as many workers had expected after the President’s announcement.
According to Mugo, employers will review workers’ payslips strictly in line with the laws and regulations that govern minimum wages in Kenya.
She stressed that the 12 per cent wage increase announced by the President should not automatically be interpreted as a blanket salary increment for every employee in the country.
Her clarification came shortly after Francis Atwoli, the Secretary General of the Central Organisation of Trade Unions (COTU), stated that the salary increase should apply across all wage categories and salary levels.
However, Mugo disagreed with Atwoli’s interpretation, describing it as misleading and likely to create unnecessary confusion among workers and employers.
She warned that many employees may wrongly expect immediate salary increases even in cases where employers are only legally required to comply with revised minimum wage regulations.
The FKE boss explained that the government’s directive mainly affects statutory minimum wages that are officially set through wage orders and approved under the country’s tripartite wage councils.
These wage councils usually involve consultations between the government, employers, and workers’ representatives before wage changes are implemented.
As a result, employers are now expected to examine payslips carefully to ensure that workers earning below or close to the minimum wage threshold receive the required adjustments in accordance with the new directive.
Mugo further clarified that workers already earning salaries above the legal minimum wage should not expect automatic increments unless such increases are provided for in employment contracts or negotiated agreements between employers and labour unions.
She noted that salary structures for workers earning beyond the statutory minimum are normally determined through existing employment agreements, company policies, and collective bargaining agreements signed between employers and unions.
According to the FKE, any additional salary increases beyond the legally required minimum wage adjustments must still follow the proper negotiation channels provided under the Labour Relations Act of 2007.
This means that wage reviews for employees in different sectors will continue to depend on negotiations between employers and unions rather than presidential directives alone.
Mugo also emphasised that employers will therefore assess payslips individually and on a case-by-case basis to determine whether they comply with the updated minimum wage requirements. The main focus, she said, will be legal compliance and not random salary increments across all sectors.
The latest clarification has emerged just days after President William Ruto announced sweeping salary increases during the national Labour Day celebrations held in Vihiga County on May 1.
While addressing workers during the event, Ruto revealed that his government had approved a 12 per cent increase in general wages for Kenyan workers and an even higher 15 per cent increase for employees working in the agricultural sector.
The President said the move followed requests made by workers through COTU and was aimed at improving the welfare of employees struggling with the rising cost of living and economic pressure facing many households across the country.
“I am pleased to announce a 12 per cent increase in general wages and a 15 per cent increase in agricultural wages to all Kenyan workers,” President Ruto declared during the Labour Day celebrations.
The announcement sparked excitement among many workers across the country, with some expecting immediate salary adjustments.
However, the latest clarification from the Federation of Kenya Employers now suggests that implementation will largely depend on existing labour laws, minimum wage regulations, employment contracts, and negotiated agreements between employers and employees.
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