Poor industrial relations among different stake holders scaring away investors

Poor industrial relations between the government and the private sector are adversely affecting the business environment and threaten to slow down economic growth.

Federation of Kenya Employers (FKE) executive director Jacqueline Mugo says ongoing turf wars between FKE, union officials and the Labour ministry are creating a bad impression on foreigners keen on investing billions of shillings in various ventures.

“This unfortunate development undermines the tripartite structure and positive labour relations that have enabled the private sector to thrive for decades, thereby helping create jobs and revenue for economic growth,” she said.

Speaking at Nakuru’s Cathay Hotel at the Agricultural Employers Association’s (AEA) 51st celebrations, Ms Mugo expressed optimism that ongoing consultations with the National Hospital Insurance Fund and the National Social Security Fund would bear fruit.

AEA chairman Nelson Rotich urged FKE to continue pushing for consensus in determining contributions to be made by employees to the two statutory bodies, saying any increment agreed upon should be done in phases to ease the economic implications on individual employees’ take-home pay.

FIX BAD ROADS

He called on the county government to fix the bad roads in Nakuru’s Industrial area, saying they were contributing to incidents of insecurity.

“This year is the most challenging for FKE and other private sector players on the state of industrial relations. We have been ejected from NSSF and the National Industrial Training Authority. I am still a member of the NSSF board and hope that this mischief will end soon,” Ms Mugo said.

She said the sour relations had also made it impossible to address policy issues, such as the inability of the National Industrial Training Authority, to make refunds to employers’ for training a big concern for agricultural employers.

The close working relationship between FKE and AEA has seen the formulation of a floriculture training curriculum, and soon a floricultural wages council could be established to streamline operations in the vibrant flower and horticultural sector.

The meeting also supported the ongoing arms mop up in Kapedo and called for the same to be expanded to other regions, especially Laikipia where cattle rustling has adversely affected ranching.