“Ease the Cost of Doing Business”:FKE Urges Government

The Federation of Kenya Employers (FKE) has urged the government to reduce the cost of doing business and create a more conducive environment for enterprises to thrive.

As the collective voice of employers in the country, FKE emphasized the need to lower taxation levels and review new policy requirements affecting employers.

The federation pointed out the importance of addressing the national debt, bolstering agricultural production and export, and improving infrastructure such as roads and air transport.

The employers’ body highlighted leveraging on Business Process Outsourcing(BPO), and increased support for key sectors sugarcane, tea, flower, security, and manufacturing.

Speaking during the 44th Western Kenya Regional Branch Annual General Meeting in Kisumu, FKE Executive Director and CEO Jacqueline Mugo stated that reducing the cost of doing business would significantly boost business growth and sustainability, and reduce the cost of living for Kenyans.

She noted that a thriving business industry will lead to more job creation, and FKE is also advocating for changes in the Public Finance Management regulations.

“We submitted a memorandum on theConstitution (Amendment) Bill 2024, championing civic education and a referendum. It aims to empower the public to participate meaningfully in the decision-making processes,

Ms. Mugo, who was recently elected the first African Female President of the International Organization of Employers (IOE) during the IOE General Assembly, decried the spiraling labour unrest in the public sector, which has continued to affect service provisions.

“This, coupled with the introduction of the Social Health Insurance Fund (SHIF), the changes to the Housing Levy, and the levels of taxation, has an overall impact on businesses from making profits and struggling to keep the levels of staff,” she said.

Under the 2025 theme, “Building Thriving Businesses in a Shifting Environment,” the federation reflected on the ever-evolving policy and regulatory space in the country.

Some of the event highlights were the election of Mr. Tom Odongo, CEO of Kisumu Water and Sewerage Company (KIWASCO), as the new President of the FKE Western Branch. He succeeded Dr Margaret Oloo, who served two six-year terms. 

Vinod Patel of Skylark Creative Products was elected Deputy President for three years.

The federation also launched the 25th Edition of Employer of the Year Awards (EYA), which recognizes employers’ contribution to the economic development in the country. 

EYA looks at Leadership and Governance, Corporate Performance, Innovation and Productivity, Responsible Business Conduct, Inclusivity and Diversity, Workplace Environment, Learning and Development, HR Practices, Industrial Relations, and SMEs. 

Jacqueline Mugo, FKE CEO (third left), poses with the Employer of the Year Awards trophy alongside Western Kenya Branch officials recently in Kisumu. Photo: Handout

Some of the notable milestones FKE boss Mugo outlined were the launch of the 2024-2028 Strategic Plan, which focuses on enhancing member services, advocating for favourable employment policies, and promoting sustainable business practices.

“The plan addresses emerging challenges in the labour market, supports businesses through innovative solutions, and steers Kenya’s business community toward greater growth and resilience.”

To enhance service delivery to its members, the 66-year-old body re-launched E-Wajiiri Members Service Portal, a user-friendly platform which seeks to streamline access to its services and resources.

According to Mugo, FKE successfully facilitated the negotiation and registration of 97 Collective Bargaining Agreements (CBAs), and implemented eight projects aimed at improving workplace standards, promoting gender equality, enhancing skills development, and addressing social challenges.

“Key projects were the FKE-GIZ Project, which strengthened industry-TVET links; the FKE-NHO ICP Project, which improved digital services for members and promoted STEM education for girls,” she elaborated while adding that the FKE-DFPA Project promoted gender equality and workplace safety.

About 582 employees drawn from 44 member organizations hugely benefitted from Workplace Training Programs, which covered: labor laws, employee wellness, leadership, and ESG (Environmental, Social, and Governance) practices.

Since its inception, the Female Future Leadership Program has empowered over 400 women, with 60 percent advancing to leadership roles, and 40 percent securing board positions. In 2024 alone, 51 participants underwent training, and 49 graduates.

“This initiative has proven to be a catalyst for change, and we remain committed to advancing women’s leadership in the workplace and beyond,” Mugo said.

In the Nyanza region, through the FKE Adopt-A-School Program, the employers’ body funded the construction of classrooms and sanitation facilities at Omuga Primary School in Homa Bay County.

On the global scene, Ms. Mugo was further re-elected as a Titular Member of the Governing Body of the International Labour Organization (ILO) for a 3-year term.

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