Responding to concerns over the affordability of the new rates, the Principal Secretary for Labour, Shadrack Mwadime, said the government acknowledges that some employers may be facing economic challenges but maintains that the increase is both manageable and legally binding.
The PS said the Ministry of Labour does not determine minimum wages arbitrarily, explaining that every review is preceded by an analysis of the prevailing economic conditions.
“There is an argument where employers are asking whether they may not be able to afford to pay. It is not true, since we carry out an analysis of the economic situation before making the announcement and, based on that analysis, we adjust and gazette the new rates,” the PS said.
The government argued that the wage increase is intended to restore dignity to workers and ensure they receive fair compensation for their labour.
Questioning whether it is fair for someone to work for an entire month and earn as little as Ksh4,000, the PS said better wages go beyond increasing take-home pay.
He argued that improved earnings enable workers to save, invest and improve their livelihoods, while also boosting household spending power and stimulating economic growth.
While acknowledging that some employers may require time to adjust, the government maintained that compliance with the gazetted wage remains mandatory.
Meanwhile, the Federation of Kenyan Employers (FKE) has advised its members to comply with the new wage regulations even as discussions continue over the impact of the higher minimum wage on businesses across the country.
The wage adjustments follow President William Ruto’s May announcement of a 12 per cent general wage increase and a 15 per cent minimum wage hike for agricultural workers.
