PHOTO:WILBERFORCE OKWIRIWe should not jeopardise employers by increasing minimum wages when productivity has nose-divedDebate on increasing minimum wages to compensate for the high cost of living has been gathering momentum. Kenya’s high minimum wage levels coupled with low productivity is taking a toll not only on companies but also on the public sector. Kenya’s minimum wages are not only the highest and frequently reviewed in East Africa, but also higher than China’s. Also, a KNBS survey in 2016 revealed that 2.2 million micro and small enterprises closed operations in the last five years. Some 35 per cent of them closed down in 2015, when the minimum wage was increased on Labour Day.

Source: Standard Digital May 01, 2017 18:00 UTC