NAIROBI, Kenya, Jun 23 – Nairobi gubernatorial candidate Polycarp Igathe has vowed to ensure that all firms comply with the minimum wage requirement, a rule he says many employers forfeit.
With the minimum wage in the country being Shs15,120, a Shs 1,548 increase from the previous year, Igathe said many firms pay their employees below this hindering their order books from going up.
While submitting his proposals to the Kenya Private Sector Alliance(KEPSA), he, however, noted that if elected, he will employ other measures to ensure companies comply with the minimum wage rather than compelling them to do so.
“We have far too many large corporates that are not paying people a living wage. We shall incentivize you to pay the minimum wage,” Igathe who is vying on Azimio la Umoja One Kenya ticket decried.
President Uhuru Kenyatta during the labor Day celebrations ordered a 12 percent increase in minimum wage.
But the Federation of Kenya Employers(FKE) warned that the increase is unsustainable warning that it will lead to increased redundancies and less hiring.
FKE President Habil Olaka previously said that the review will have a negative outlook on cashflows and financial positions of companies as it will lead to a higher demand for a review of general wages and collective bargaining agreements.
“In the medium term, as enterprises readjust their operations to meet the increased payroll costs, we expect to see an increase in redundancies, increased automation and outsourcing, and depressed hiring. The new graduates entering the market at all levels should be prepared for an extended period of searching for employment and remaining employed,” he said.
As part of his agenda, Igathe also said he will seal the loopholes that lead to loss of revenue in the city.
“The problem with Nairobi is not the absence of the law but its implementation. To attract private sector investment and public participation in bringing the change we want to Nairobi, we will catalyze business through incentives starting with the rationalization of country licenses as well as get rid of the many cartels that control the various aspects of running the city,” he told KEPSA.
