This archive report was first published on 23 April 2020.
On April 23, 2020, the Federation of Kenya Employers (FKE) proposed a government-funded wage relief kitty to help employers cope with the financial strain caused by the coronavirus pandemic.
The proposal, similar to funding models in the United Kingdom and the United States, would see the national government cover 50% of employers' wage bills.
According to FKE Executive Director Jacqueline Mugo, the intervention would mitigate the impact of COVID-19 on businesses and provide a direct relief to manage payroll budgets and protect workers' incomes.
However, Mugo noted that the proposal has been previously rejected by the government, citing inability to set up the funds and difficulty in identifying eligible firms.
Under the proposed plan, the government would cover 50% of wage bills, and employers would be required to submit audited financial statements to the Kenya Revenue Authority (KRA) to determine the number of employees.
As an example, Mugo pointed out that the United Kingdom's relief package covers 80% of employers' wage bills.
