The Central Organisation of Trade Unions (COTU) Secretary General wants President William Ruto to increase the general wage bill.
According to Atwoli’s submission to the Dialogue Committee, employees are feeling the pain from the high cost of living and increased deductions.
COTU highlighted essential goods such as housing, food, healthcare, and education, which have placed a heavy burden on families.
“We propose that the President orders a general wage increase similar to the one implemented in 1972 by President Jomo Kenyatta.” “A general wage increase in Kenya is not only a matter of economic justice but also a practical step to enhance the well-being of the workforce.”
COTU contended that such an increase will also help alleviate poverty and inequality, boost productivity, stimulate economic growth, and align with international labour standards.
Additionally, Atwoli urged President Ruto to introduce incentives that would spur the growth of small businesses in the country.
He also asked the government to grant concessions to businesses operating within the Export Processing Zones to safeguard employment opportunities.
Employers Headache
The Federation of Kenya Employers (FKE) has expressed concerns over increased deductions.
Salaried workers have seen a jump in NSSF contributions from Ksh200 to up to Ksh1,080 and the start of a 1.5 per cent housing levy deduction on gross pay, cutting their take-home pay.
“There has been quite an increase in the level of breach with what the Employment Act requires. It is a big problem and we have had engagements with the government. Other than the statutory deductions, people have their commitments like loans, mortgages, and fees,” Jacqueline Mugo, the executive director and FKE CEO stated.
They asked the government to harmonize deductions to shied employees from the high cost of living and losing the value of their work.
“There is a need for the government to harmonize these deduction laws. What do we obey? Do we obey the Employment Act or others like for housing levy and pension? At the end of the day, all these are laws and none supersedes the other except the Constitution,” Mugo added.
