CS Mutua Backs Business Reforms as Employers Call for Stability, Jobs, and Growth

Nairobi: The Federation of Kenya Employers (FKE) held its 66th Annual General Meeting (AGM) on Wednesday in Nairobi, drawing business leaders, government officials, and stakeholders to reflect on 2024 and chart a course for the future of work in Kenya...

Nairobi: The Federation of Kenya Employers (FKE) held its 66th Annual General Meeting (AGM) on Wednesday in Nairobi, drawing business leaders, government officials, and stakeholders to reflect on 2024 and chart a course for the future of work in Kenya. Labour and Social Protection Cabinet Secretary (CS) Dr. Alfred Mutua reassured employers that the government is committed to building a business-friendly environment to drive economic growth and job creation.

According to Kenya News Agency, Dr. Mutua emphasized the need for strong partnerships between the government and private sector and vowed to eliminate bureaucratic barriers and harassment of business owners. He cited the case of a young entrepreneur who was harassed by enforcement officers before she had even launched her business and in response announced a temporary halt to labour inspections while a more transparent and fair system is developed.

The CS also called out employers who had failed to implement the recently agreed six percent wage increase, warning of potential tensions between government, unions, and businesses. He promoted social dialogue as a key tool for preventing labour unrest, encouraging employers to engage with the ministry before conflicts arise. Dr. Mutua further floated the idea of a consumer-driven economic model, urging companies to hire more even beyond their immediate needs.

FKE National President Dr. Gilda Odera highlighted the global economic challenges in 2024, shaped by geopolitical instability, including the re-election of U.S. President Donald Trump and ongoing conflicts like the Russia-Ukraine war. Locally, she noted that Kenya faced policy unpredictability, high operational costs, and a shrinking market. Dr. Odera acknowledged the Federation’s efforts in engaging with the government and international partners, particularly the International Labour Organization (ILO), to push for a stable and competitive regulatory landscape.

She announced that FKE Executive Director Jacqueline Mugo had been elected as the first African female President of the International Organisation of Employers (IOE). Dr. Odera also addressed internal FKE matters, including financial strains within its commercial units, and urged members to support the Federation by paying subscriptions on time. She encouraged contributions toward the FKE Headquarters Development Project, warning that construction delays would only drive-up costs.

In her remarks, Executive Director Jacqueline Mugo reviewed FKE’s key achievements in 2024 and strategic focus areas for 2025. She highlighted the Federation’s policy advocacy work, including a constitutional petition challenging the Social Health Insurance Act and consultations on tax and labour reforms. Looking ahead, Ms. Mugo reaffirmed FKE’s commitment to its 2023-2027 Strategic Plan, aligned with Kenya’s Vision 2030 and the Sustainable Development Goals.

The AGM ended with a call for greater collaboration among employers, government, and stakeholders to drive sustainable enterprise development, protect jobs, and boost Kenya’s global competitiveness.

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