Kenya boosts minimum wage as inflation bites

NAIROBI: Kenyan President Uhuru Kenyata announced Sunday a 12-per cent hike in the minimum wage as the country confronts a surge in the cost of living.

Inflation in the East African economic powerhouse jumped to a seven-month high in April, mainly as a result of skyrocketing fuel and food prices, according to official figures.

“As a caring government, we find there is a compelling case to review the minimum wages so as to cushion our workers against further erosions,” Kenyata said at a Labour Day rally.

He said the 12 per cent increase would come into effect from May 1. It takes the minimum monthly wage from 13,500 Kenyan shillings (about $116.5, 110.5 euros) to 15,120 shillings ($130.5, 124 euros).

However the hike falls far short of the 24 per cent that had been sought by the Central Organisation of Trade Unions-kenya (COTU).

Kenyata said the high cost of living was due to factors “beyond my control like the coronavirus pandemic and the Russia-ukraine conflict”.

He castigated rival political leaders -- including Deputy President William Ruto -- for seeking to blame the government for the economic woes, as the country prepares for crucial elections in August.

Kenyata cannot run again ater serving two terms but has endorsed his former arch-rival Raila Odinga for the top job.

The August 9 presidential election is expected to be a two-horse race between Odinga and Ruto, who was initially anointed by Kenyata as his successor, but found himself frozen out ater a shock 2018 pact between Kenyata and Odinga.