The government has responded to concerns from employers over the newly increased minimum wage, insisting businesses can afford the adjustment and maintaining that the decision was informed by a comprehensive assessment of the country's economic conditions.

🇰🇪 Breaking It Down

Last month, the Ministry of Labour gazetted the new minimum wages for various workers like cleaners, gardeners, messengers and watchmen, who will now earn at least Ksh18,047.40 per month if employed in the cities of Nairobi, Mombasa, Kisumu, Nakuru, and Eldoret.

According to the gazette, miners, cooks and waiters will receive Ksh19,491.33, with night watchmen earning a minimum of Ksh20,133.72 while working in the same cities.

However, employers have questioned whether businesses, particularly small and medium-sized enterprises, would be able to absorb the higher labour costs following the implementation of the new wage order.

📌 What You Need to Know

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.

📰 Source: Kenyans.co.ke