Employers reject calls for wage increase, urge 5% cap ahead of Labour Day

As the country prepares to mark Labour Day, the Federation of Kenya Employers (FKE) has opposed a proposal to increase minimum wages, warning that such a move would represent a significant policy shift requiring broad stakeholder consultation and careful assessment due to its far-reaching implications.

Speaking in Mombasa during the 65th Coast Branch Annual General Meeting, FKE warned that a sharp wage increase could drive up the cost of doing business at a time when global economic pressures are already straining employers, particularly small and medium-sized enterprises.

The employers’ body is urging the government to cap any minimum wage increment at no more than 5 per cent.

The federation is also calling for tax relief measures targeting low-income earners, alongside structural reforms aimed at reducing the cost of doing business and supporting enterprise sustainability.

FKE Executive Director Jacqueline Mugo is expected to outline the employers’ position on the proposed wage review.