Senators, through Nominated Senator, Karen Nyamu, have proposed that the government should increase the minimum wage by 50.0% to Kshs. 22,680 up from Kshs 15,120 amidst the current harsh economic conditions in the country.
The motion set to be proposed today, 22nd March 2023, indicates that the senators are pushing for another revision of the minimum wage given the previous one was dated more than two years ago during Uhuru Kenyatta’s era. Kenyans had their minimum wage increased by 12.0% to Kshs. 15,120 up from Kshs. 13,500 primarily to cushion the employees against the rising cost of living as the country struggle to recover from the adverse effects of the Covid-19 pandemic that began in 2020.
The senators argue that the government is collecting huge amounts of revenues from employees in form of taxes and other statutory deductions and should consider increasing this wage amidst high cost of living and deteriorating inflation rate. Ms Nyamu argues that for a government that plans to widen the tax base, it could collect more revenues if the employees earned more.
Read: Minimum Wage Increased By 12 Percent
“Better payments for workers mean more productivity by the same worker translating into increased return by the employer as well as more revenues by the government,” says Ms Nyamu.
In accordance with the Labour Institution Act, 2007, the senator wants the Cabinet secretary for Labour in consultation with the wage council to publish a new order to increase the current minimum wage by 50.0%. This will ensure Kenyans survival in these hard economic times.
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