An Assesment of the enforcement of minimum wage legislation in Kenya

Abstract

This dissertation looks to assess on the enforcement of minimum wages laws in Kenya. It does this by investigating on the exact extent of the enforcement of these laws and thereafter looking to evaluate on the factors causing such an extent of enforcement. Additionally, the dissertation looks to analyse and suggest the various approaches that could be considered so as to improve said enforcement.This dissertation does not look to question the viability of minimum wage legislation by itself as a policy instrument, but instead confines itself to assessing the enforcement of these laws; an area of research it identifies as generally ignored and minimally explored by the academic community.To achieve this, the dissertation primarily relies on secondary data from numerous strands of literature that have looked to analyse, whether partly or wholly, the questions that the dissertation seeks answers to. Thereafter, the dissertation combines and conceptualizes said data to paint a picture of the enforcement of these laws in contemporary Kenya as well as offer avenues through which the rate of enforcement can be improved.The dissertation indeed establishes that enforcement of these laws is dismal in Kenya, with the most relevant and latest source placing said non-enforcement at an astounding 42% of all of Kenya’s labourers. Some of the reasons behind this poor extent of enforcement are identified by the dissertation as a poorly capacitated labour inspectorate as well as on the manner in which the minimum wages are set, including the considerations looked at in the process of such setting. The high informality rate that characterises Kenya’s labour force, and a general lack of awareness of these laws on the part of the various labour market players are too identified as major causes behind the poor rate of enforcement. The dissertation thereafter identifies ways in which such enforcement can be improved, and such measure as the sustainable formalization of the informal economy, the enhancement of the labour inspectorate as well as the spreading of information and awareness about these laws are identified to that effect. In the end, the dissertation concludes and offers recommendations stemming from its writing.