A new row has emerged in the labour sector after employers and trade unions offered different readings of a 12 per cent salary increase announced during Labour Day celebrations, setting up a confrontation over how the directive should be applied.
The Federation of Kenya Employers came out strongly to challenge remarks by COTU Secretary General Francis Atwoli, who had indicated that the increase should benefit all workers. In its response issued Monday, the employers’ body dismissed that view as inaccurate and misleading.
FKE argued that the legal framework in Kenya only allows the government to adjust statutory minimum wages through established structures, not to dictate across-the-board salary increments for all employees.
“The law only grants power to regulate minimum wages, not general wages. This is done through the tripartite Wages Councils as gazetted from time to time. Any government-directed wage adjustments apply strictly to the statutory minimum wages, as prescribed in the Regulation of WagesOrders,s and not the actual wages payable to all employees,” FKE said.
It maintained that pay levels above the minimum threshold remain a matter between employers and workers, guided by contracts, collective agreements, output and prevailing market conditions.
“Employers have the legal discretion to determine wages above the statutory minimum wages based on contracts of employment, collective bargaining agreements (CBAs), productivity, and market dynamics.”
FKE further cited the Labour Institutions Act, 2007, and the Labour Relations Act, 2007, to support its position, warning that Atwoli’s interpretation could trigger confusion and strain relations at the workplace.
On the other hand, COTU-K defended its stance, saying the President’s announcement was a clear signal of government policy aimed at cushioning workers from the high cost of living.
“The President’s pronouncement was clear, unequivocal, and made in the full glare of the public. It constitutes a policy directive that is already in the process of being operationalised into law,” Atwoli said.
The union accused employers of attempting to block the intended pay rise and deny workers relief, insisting that limiting the move to minimum wages misses the broader purpose of the directive.
COTU-K also pointed to the importance of cooperation between the government, employers and workers, warning that resistance from one side could disrupt that balance.
“We wish to remind employers that Kenya operates under a tripartite framework, and respect for national policy direction is fundamental to maintaining industrial harmony, and that the posture adopted by FKE signals an unwillingness to support progressive labour reforms and raises serious concerns about their commitment to social dialogue,” Atwoli stated.
The union urged employers to align with the directive once it is formalised into law and to ignore what it described as misleading claims, deepening the standoff over the wage increase.