On Sunday, Kenyan President Uhuru Kenyatta announced a major decision of increasing the minimum wage by 12% while celebrating with the country’s workers in the capital Nairobi. The move, which will be implemented swiftly, was taken on May 1 when the African nation and its workers were marking Labour Day.
A Cause to Cheer on Labour Day
“We find that there is a compelling case to review the minimum wages so as to cushion our workers against further erosion of their purchasing power while also guaranteeing the competitiveness of our economy,” he explained in a statement. He also mentioned that it was over three years since there had been a review of minimum wages. During this period, the cost of living, as well as the price of commodities, had increased dramatically, thus pushing the authorities to act quickly.
“I call on the private sector, please let us work in the same spirit, let us all make the adjustments that will sustain the wellness of our labor force, let us sacrifice a portion of our profits,” he expressed further in an emotional appeal. Kenya has been experiencing a fuel shortage like many other countries and the situation is not expected to get better.
Soaring Inflation Prices
The decision comes amidst rising inflation in almost every part of the world due to the ongoing Ukraine-Russia war. The conflict has particularly affected the food and energy sectors of commerce. The shockwave of this crisis has been felt by the whole world, with many other countries reeling under inflation. Recently, the governments of Chile and Malaysia had also implemented such a change in their minimum wage policy in order to cope with the economic tensions. Laos is also close to following a similar decision.
In 2018, Kenya announced an increase in minimum wages by 5%. The current wages stand at 13,500 shillings (USD 116.5), with the new step likely to make the situation better for the time being. However, President Kenyatta will have to be cautious in implementing such a drastic measure, so as to please the private companies in the East African region who are attracted by the cheap labor of the country.
Edited By: Vanshika Sahu
Published By: Raj Kishor
