FKE wants taxes reduced to enable wage increment

By Juney Karisa

Employers are urging the government to develop policies that will help reduce the cost of inputs and taxes imposed on products and services in order to reduce the pressure on them to increase employees’ wages.

Federation of Kenya Employers Executive Director Jacqueline Mugo says increasing employees’ wages and at the same time reducing costs for consumers in the current business environment is unmanageable unless the government steps in with incentives.

Concerted efforts between the government and the private sector to increase employees’ wages have over the years borne little fruit with employers citing the high cost of doing business as restrictive.

To this end, the employers propose that if the government develops policies that will help cut the cost of inputs and taxes as well, they will be in a better position to increase employees’ wages.

Mugo says this would further go along way into improving the cost of living.

Speaking on the sidelines of the 59th FKE annual general meeting, Mugo further underscored the need for the creation a tribunal to handle minor cases at the Employment and Labor relations court, to among others speed up employment related cases piled up at the High Court.

Mugo also urged the private sector to create more jobs in the formal sector, hailing the over 800,000 jobs created for the youth in informal sector last year alone.