Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

Kenya

Minimum Wage Fixing Machinery (Agriculture) Convention, 1951 (No. 99) (Ratification: 1971)
Minimum Wage Fixing Convention, 1970 (No. 131) (Ratification: 1979)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 131 and 99 in a single comment.

Article 3 of Convention No. 131. Criteria for the determination of the level of minimum wages. In its previous comments, the Committee noted the issue raised by the Federation of Kenya Employers and the International Organisation of Employers (IOE) indicating that recent minimum wage increases had not taken into account factors relating to the ability of the companies to pay and to productivity. The Committee notes the Government’s reply in its report that no productivity measurement tool was available and that discussions were still ongoing for the development of the National Wages and Remuneration Policy. The Committee also notes that section 44(5) of the Labour Institutions Act contains a list of criteria that wages councils shall take into consideration in the performance of their functions, including: (a) the needs of the employees and their families, taking into account the general level of wages in the country, the cost of living, social security benefits and the relative living standards of other social groups; (b) economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment and the need to encourage investment; (c) the ability of the employers to carry on their business successfully; (d) the operation of small, medium and micro-enterprises; (e) the cost of living; (f) the alleviation of poverty; (g) the minimum subsistence level; (h) the likely impact of any proposed conditions of employment on current employment or the creation of employment; and (i) any other relevant factor. The Committee requests the Government to provide concrete information on the elements which are taken into consideration by wages councils when determining the adjustments of the minimum wages. In addition, it requests the Government to provide information on the progress made in the development of a National Wages and Remuneration Policy.

Article 2 of Convention No. 99. Allowances in kind in the agricultural sector. The Committee notes that section 17(5) of the Employment Act, 2007, provides that if in a contract of service or collective agreement, provision is made for the payment of any allowance in kind to an employee with the employee’s consent, such allowances shall be for the personal use and benefit of the employee. The Committee recalls that Article 2 requires that allowances in kind shall not only be appropriate for the personal use and benefit of the workers and their family but also be fair and reasonable. The Committee requests the Government to provide information on the measures taken to ensure that the value attributed to allowances in kind in the agricultural sector is fair and reasonable.