(Ecofin Agency) – Kenya is engaged in several economic reforms to strengthen the resilience of its economy and enable people to fight against inflation. Under these measures, the Head of State has decided to increase the salaries of civil servants who have remained unchanged for three years.
Kenyan workers will benefit from a 12% increase in their minimum wage, in order to cope with the high cost of living. The announcement was made by the Head of State, Uhuru Kenyatta (pictured), on Sunday 1is May, during the celebration of Labor Day, did we learn in a press release from the presidency.
This measure comes in a context of inflation in the country. Indeed, Kenya is facing inflation of 6.47%, according to the country’s Central Bank (April estimate), while workers have not been entitled to a salary increase for at least three years. .
1/5 President Uhuru Kenyatta has announced a Govt decision to raise Kenya’s minimum wage by 12% effective today, 1st May 2022, saying the decision was aimed at cushioning the country’s workforce against the rising cost of living occasioned by several external economic factors. pic.twitter.com/biH8sdotTZ
— State House Kenya (@StateHouseKenya) May 1, 2022
This wage increase therefore comes with a view to “ protect vulnerable people, including workers and farmers from the cost of inputs “. The measure took effect immediately, according to Kenyatta.
According to the International Monetary Fund (IMF), several reforms have been made to the country’s fiscal policy, as part of a multi-year plan. The purpose of these measures is to reduce debt vulnerabilities » et « contain the side effects of global inflation ».
« In this regard, and in full recognition of the essential contribution of workers to the economy, following the recommendation of various stakeholders, as a benevolent government, we believe that there is a compelling reason to review minimum wages, in order to protect our workers against a further deterioration of their purchasing power while guaranteeing the competitiveness of our economy “said the President of the Republic.
Kenya’s minimum wage saw its last increase in 2018, from just over $111 to $116.5. The incomes of civil servants have since stagnated, while the country, like those of the world, faces galloping inflation due to the war in Ukraine and covid-19.
Just over a week ago, Kenya benefited from a disbursement of nearly $244 million, under a 38-month financial program supervised by the IMF. The institution also congratulated the country for the successful implementation of economic reforms which earned it a ” robust recovery “. The Fund also forecasts a growth of the Kenyan economy of 5.7% this year. This forecast is down slightly by 0.2 percentage points compared to last year’s forecast which was estimated at 5.9%.
Jean-Marc Gogbeu