Employers’ umbrella body, the Federation of Kenya Employers (FKE), was on Thursday blocked from addressing Labour Day celebrations in Nairobi, in a dramatic day that saw the Central Organisation of Trade Unions (Cotu) side with the government.
FKE Executive Director Jacqueline Mugo, who had shown up with a speech with fiery proposals to the government, was not granted a chance to speak, even as Cotu teamed up with the government to attack employers.
Interestingly, as workers walked out empty-handed as Cotu and the State lacked good news of a salary increase, the FKE had shown up with proposals that stood to benefit workers, including asking the government to lower the Housing Levy to 0.5 per cent, revise tax relief bands to Sh36,000 and zero-rate basic food items to cushion households from high prices.
“Beyond minimum wages, we have proposed broader reforms to improve worker welfare and support business sustainability. These include pegging statutory deductions to basic pay, revising tax relief bands from Sh24,000 to Sh36,000, reducing the Housing Levy to 0.5 per cent, and zero-rating VAT on basic food items,” read Ms Mugo’s blocked speech.
The FKE said the actions would ease the cost of living for Kenyans, thus increasing their disposable income and in turn make local businesses more competitive.
President William Ruto and Cotu Secretary-General Francis Atwoli during the 60th Labour Day celebrations at Uhuru Gardens National Stadium in Nairobi County on May 1, 2025.
Photo credit: Photo | PCS.
The employers had also prepared to seek clarity from the government on its determination to support local producers and manufacturers, unravelling a new concern among local manufacturers.
“Policy should be clear whether Kenya is positioning herself as a producing or trading country. We desire a producing country exporting goods across Africa and the world. We must fill our shelves, trucks, and homes with MADE IN KENYA products and brands,” Ms Mugo’s speech said.
The FKE also had a request to the government to assure businesses a stable and predictable environment with a friendly taxation framework that attracts investments in order to create jobs and pay higher salaries.
The Federation criticised leaders who have been calling on the youth to create their own jobs as being dishonest, instead noting that creating a good environment for businesses to thrive would address Kenya’s high unemployment problem.
“They say the youths should be self-employed. The youths should be creators of jobs. The unfortunate thing is that all those who tell me this are employed and earning a salary.
“If we who earn a salary are not able to have a business, self-employ ourselves, and create jobs, what about that poor youth who is graduating without any capital? We have to be honest,” Ms Mugo’s speech read.
