Tensions between Cotu, employers deepen as FKE is denied chance to address workers

The silence of the Federation of Kenya Employers (FKE) during this year's Labour Day celebrations spoke volumes, particularly after the event, attended by high-ranking dignitaries including President William Ruto concluded without any remarks from the employers' body.

FKE, representing over 1,400 employers nationwide, ="https://www.standardmedia.co.ke/article/2001459452/william-ruto-courts-cotu-fke-to-drop-nssf-cases">has been locked in a prolonged< standoff with the Central Organisation of Trade Unions (Cotu).

The rift deepened after Cotu Secretary General Francis Atwoli accused employers, under the FKE umbrella of dragging their feet whenever the government announces a minimum wage increase.

Atwoli cited the six per cent wage increase announced by President Ruto during the 2024 Labour Day celebrations, noting that many employers had yet to implement it.

“Mr President, you need to talk to FKE. Let them support us in this direction,” he urged. “When you gave us the six per cent wage increase, to date it’s not implemented.”

But in a rejoinder, FKE in a statement signed by its executive director and chief executive Jacqueline Mugo said employers and the business community seek a stable, predictable and simple business-friendly taxation framework that supports business growth, encourages capital formation and promotes investments to create sufficient employment and pay higher wages.

"It is unfortunate and surprising that the 2025 celebrations have established a tradition to exclude employers from the programme," she said.

"Beyond minimum wages, we have proposed broader reforms to improve worker welfare and support business sustainably. These include pegging statutory deductions to basic pay, revising tax relief bands from Sh24,000 to 36,000, reducing housing levy to 0.5 per cent and zero-rating VAT on basic items."

During the same 2024 celebrations, ="https://www.standardmedia.co.ke/national/article/2001504483/cotu-urges-unions-to-renegotiate-salary-deals">FKE called for the delinking< of wage adjustments, including the statutory minimum wage, from Labour Day proceedings.

“As of today, no minimum wage council has met to deliberate and advise on minimum wage adjustments as required by law. Therefore, any call to adjust minimum wages without following the laid down procedure and law undermines dialogue and tripartism,” she said.

The growing tensions between Cotu and FKE have seen Cabinet Secretary for Labour and Social Protection Alfred Mutua call for dialogue. “Social dialogue is important,” he said. “I’ll be calling for a meeting very soon between Cotu, FKE, and all other social partners to discuss working modalities.”

Speaking at the 60th Cotu Shop Stewards’ meeting in Nairobi, Atwoli was defiant, stating that the union would not tolerate FKE dictating terms that he believes undermine workers’ rights and interests.

He went as far as vowing to block FKE from speaking at the 2025 Labour Day celebrations, a notable shift from tradition, where FKE typically speaks before Cotu, followed by the Labour Cabinet Secretary and then the President. And indeed he blocked the employer's lobby at yesterday's event.

Atwoli further expressed frustration with FKE’s position, saying employers often cite tough economic conditions as justification for not complying with wage directives.

"We cannot allow ="https://www.standardmedia.co.ke/business/amp/counties/article/2000149496/cotu-fke-we-were-left-out-of-president-uhurus-social-protection-conference">FKE to dictate terms< that undermine workers' interests," he declared. "The government must step in and support unions in our efforts to secure better wages for our people. The Ministry of Labour appears intimidated by FKE's opposition, but we will not back down."

President William Ruto, during his 2025 Labour Day address, reaffirmed his commitment to the six per cent wage increase, instructing both the Ministry of Labour and the Head of Public Service to ensure its implementation.

“When we agreed to enhance pay by six per cent last year, there ensued a debate—and some employers have still not implemented the six per cent we agreed on,” the President said.

This dispute comes amid growing pressure for fair wages as the cost of living continues to rise. Workers and unions are increasingly vocal about the need for salaries that match inflation and economic realities.

Atwoli remains resolute in his campaign for a just and equitable wage system, especially for those in sectors hardest hit by the economic downturn.