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.
“I want to assure you that the Ministry of Labor is here to facilitate you, not frustrate you. The role of government is to create an environment where businesses can thrive and more Kenyans can be employed,” Dr. Mutua told the delegates.
The CS 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.
“We are suspending inspections temporarily to review our systems. The goal is not to shut down businesses but to help them comply and grow,” he said.
While pledging support to employers, the CS also called out those who had failed to implement the recently agreed six percent wage increase, warning of potential tensions between government, unions, and businesses.
“Once we agree on a pay raise, it must be implemented. Let’s respect the law and our agreements,” he said firmly.
Dr. Mutua promoted social dialogue as a key tool for preventing labour unrest, encouraging employers to engage with the ministry before conflicts arise.
“Before you go on strike or fire someone, come to me. Let’s talk. Dialogue can solve 90% of our issues,” he said.
He further floated the idea of a consumer-driven economic model, urging companies to hire more even beyond their immediate needs.
“Imagine if every company took a small bit out of its profits to employ even one more person. That money circulates, drives demand, and grows the economy,” said Dr. Mutua.
FKE National President Dr. Gilda Odera emphasized on the importance of unity in advancing Kenya’s business agenda.
She noted that the global economic landscape in 2024 was shaped by geopolitical instability, including the re-election of U.S. President Donald Trump and ongoing conflicts like the Russia-Ukraine war, which had wide-reaching economic impacts.
Locally, she said, Kenya faced policy unpredictability, high operational costs, and a shrinking market.
“Policy unpredictability remained a major threat,” Dr. Odera noted, citing rising redundancies due to increased labour costs and growing investor hesitancy.
She 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.
“We are a not-for-profit organisation and rely on your subscriptions; your continued support is vital,” she said.
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.
“The challenges we face today are real, but they are not insurmountable,” she said.
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.
“Our goal is to ensure policies are realistic, predictable, and supportive of enterprise growth,” Ms. Mugo stated.
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.
“Together, we can build a better future of work,” she concluded.
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.
By Fride Amiani and Amina Bakari
