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Kenya increases minimum wage to offset impact of increasing prices

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  • Kenya’s President Uhuru Kenyatta has increased the minimum wage by 12% to offset soaring living costs. The recent announcement comes at a time the country is preparing itself for the next presidential and parliamentary elections

Kenya’s President Uhuru Kenyatta has increased the minimum wage by 12% to offset soaring living costs. The recent announcement comes at a time the country is preparing itself for the next presidential and parliamentary elections.

Inflation hit a seven-month high in the East African country in April riding on the back of soaring fuel and food prices.  This forced the government to review the minimum wage upwards, to protect the interests of the vulnerable sections of the people. The 12% increase raises the minimum monthly wage from 13,500 Kenyan shillings (about 110.5 euros / 116 dollars) to 15,120 shillings (124 euros / 130 dollars). However, the trade unions have been asking for a much higher increase of 24%.

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President conveyed that the increase in prices was beyond the control of the government and was the impact of the ongoing war between Russia and Ukraine and the lingering effect of the Covid-19. The government is facing a lot of criticisms from various quarters for the present state of the economy. That may have an impact on the coming elections. However, the President defended the government policies and attributed the reasons for the present state to external factors. His critics included Deputy President William Ruto.

President Kenyatta cannot stand for re-election after two terms. However, he is backing his former rival Raila Odinga to succeed him. The presidential election is on 9 August. It is expected to pit two favourites, Mr Odinga and Mr Ruto. The vice-president was initially nominated by Uhuru Kenyatta as his successor.  But was eventually dropped in favour of the historic opponent Odinga. Analysts say it was because of a deal struck in 2018.

 Kenya’s finance minister unveiled a US$28 billion budget last month for turning around the economy.  Kenyans have been facing rising prices for basic necessities such as food and fuel, a situation exacerbated by the war in Ukraine and droughts affecting several parts of the country. Inflation hit a seven-month high of 6.47% in April, up from 5.56% in March and 5.76% in April last year.

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