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BY JOAN WANJIKU,NAIROBI,1ST MAY 2018-President Uhuru Kenyatta during labour day celebrations on Tuesday announced a five per-cent rise in minimum wage.
In his speech to mark the workers day , read by Labour Cabinet Secretary Ukur Yatani, Mr Kenyatta on Tuesday also called for dialogue to solve ongoing strikes.
However the news could not have been received well by employers who on Monday had warned against another wage increase, arguing that such a move will hurt an economy that is just beginning to recover from last year’s battering.
The Kenya Association of Manufacturers (KAM) said the industry is yet to pick pace following last year’s setbacks, including high inflation rates, drought and prolonged electioneering.
KAM chief executive Phyllis Wakiaga said any raise in minimum wage would be a big blow to the industry, with possible negative impacts on the livelihoods of workers.
“A ceremonial wage increase will not help us to tackle the subject of poverty eradication in a sustainable way,” Ms Wakiaga said in a statement.