ECONOMY

FKE dismisses COTU’s claims on minimum wage implementation

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The Federation of Kenya Employers (FKE) has strongly refuted claims by the Central Organization of Trade Unions (COTU) Secretary General Dr. Francis Atwoli. He accused employers of obstructing the implementation of the new statutory minimum wage.

In a statement issued on Friday, FKE Executive Director and CEO Jacqueline Mugo termed Dr. Atwoli’s remarks—made during a meeting with shop stewards on April 6—as unfounded and misleading.

“Contrary to these unwarranted allegations, FKE has consistently advocated for a fair and transparent process in reviewing the statutory minimum wage in Kenya,” Mugo said.

FKE emphasized its active participation in the lawful processes laid out in the Labour Institutions Act, 2007. On which mandates the establishment of Wages Councils to guide minimum wage decisions. According to FKE, these Councils are crucial for ensuring inclusive consultations among the government, employers, and workers’ unions.

President William Ruto had, during the 2024 Labour Day celebrations, directed the Labour Cabinet Secretary to facilitate a minimum wage increase of not less than 6 percent. However, the reconstitution of the Wages Councils was only gazetted in September 2024—months after the directive.

Following the gazettement, FKE stated that it worked collaboratively with other tripartite social partners to reach a consensus on the new minimum wage, which was published on October 7, 2024. Employers were then advised on October 14 to implement the revised wages starting November 1, 2024.

“FKE remains committed to fostering industrial peace and a conducive business environment that promotes economic growth, job creation, and fair labor practices,” the statement added.

The Federation called on COTU to engage in professional and lawful dialogue, urging a united approach toward solving labor issues in the country.

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