30 Jan 2025

On January 24th, 2025, the Federation of Kenyan Employers (FKE) held her Management Board meeting, followed by a press briefing led by FKE National President, Dr. Gilda Odera, and FKE Executive Director and CEO, Ms. Jacqueline Mugo. During the briefing, FKE highlighted several key issues affecting businesses in Kenya and called on the government to take immediate action in addressing these concerns.

FKE urged the government to enhance fiscal responsibility in the 2025/2026 budget, emphasizing the need for efficient public service delivery, honouring contracts (including Collective Bargaining Agreements), and ensuring the timely payment of bills, including the clearance of pending debts.

 

The Federation also raised concerns about the tax regime, appealing to the government to avoid introducing new taxes that could burden businesses further or increase payroll deductions. FKE stressed the importance of adopting a stable, predictable, and progressive tax system that would foster long-term business planning and investment. Additionally, the Federation called for the formalization of informal enterprises, highlighting the need to address the shrinking of the private sector, which could be alleviated by creating a more inclusive economic environment.

 

Ms. Mugo also addressed a critical concern regarding the impact of excessive payroll deductions on employees. She stated that employees can no longer bear additional deductions from their payslips.

 

In addressing issues affecting the agricultural sector, FKE emphasized the need for supportive policies to ensure the preservation of employment opportunities within the sector. Among the key challenges highlighted were rising air freight costs, stringent global market demands, delayed VAT refunds amounting to Ksh 2 billion, and the illegal activities threatening tea operations in Nandi and Kericho due to the failure to enforce the rule of law.