Social dialogue is a term used to define the nature of discussions that take place between representative employer organisations, worker organisations and governments, particularly as they relate to labour and social policy debates both within the ILO and at national level. This tripartite model has guided the working methods and governance of the ILO since its inception. 

The strength of social dialogue rests in the representativity of the organisations of workers and employers to engage with government and each other on behalf of a legitimate constituency, i.e. their members.  Nowadays, some question that "exclusivity".  Other actors in society also seek to have their voice heard.

Employers do not object to others contributing to national debates, but many such voices do not have the representative legitimacy of the traditional actors, and who these voices speak for is not often very clear.  Such inclusion should not be at the expense of social dialogue.

Social dialogue allows for consensus-building, giving governments real social actors to engage with that have the legitimacy to take decisions

In recent years, the need for such consensus-building in the face of economic and social change has increased.  This has led to the establishment of more regular and deeper conversation between FKE, the Government of Kenya and the Central Organization of Trade Unions (COTU). Sound industrial relations and effective social dialogue are a means to promote a better business environment, create jobs, promote better wages and working conditions as well as peace and social justice.

The substantial economic and labour market contribution of Small and medium-scale enterprises (SMEs) has long been recognised in global dialogue on employment, and economic and social development.  Encouraging and supporting SMEs therefore form part of the policy dialogue across a wide range of international initiatives and organisations.

SMEs form the majority of the enterprises in the Kenyan economy. They employ a large share of the labour force. The sector is perceived as an alternative employer. SMEs form bulk of FKE membership and are as important as large firms in the creation of gross and net new jobs. Notwithstanding their importance, most SMEs are unable to exploit the increased market opportunities due to a number of constraints. This is because of either low productivity, incapacity to face competition from imports or in export markets, constraints to adapt new technologies and or a lack of finance. Financing of the sectors' activities is always cited as one of the problems facing the sector.

FKE advocates not only for central consideration of the unique issues and opportunities the SME sector presents, but also ensures that there is dialogue with small businesses and not simply about small business. The IOE continues to be a strong advocate for SME-led responses to various challenges, including those arising from economic and labour market crises.

Employment relations in Kenya are regulated by a number of sources including Kenya’s constitution. The government, FKE and the unions undertook comprehensive legal reforms in the Labour sector, the exercise led to the enactment of 5 major legislations to guide and regulate all labour and employment matters.

The Labour Relations Act, 2007 promotes Employment Relations, Industrial harmony, it encourages parties to negotiate and relate in good faith. The Employment Act, 2007 declares and defines fundamental rights of employees, it provides for basic conditions of Employment and regulates employment of children. The Labour Institution Act, 2007 creates vital bodies which facilitate industrial peace and harmony and effective functioning of labour market. The Workers Injury Benefits Act, 2007 extends insurance cover and ensures adequate compensation for injury and work related duress regardless of employees’ insolvency. Occupational Safety and Health Act 2007 seeks to ensure safety and health of workers in the workplace whether temporary or permanent employment. The Employment and Labour Relations Court Act, 2011 establishes the Employment and Labour Relations Court with the status of a High Court.

Since 2010, there has been an increase in employment cases being handled by the Employment and Labour Relations Court. The levels of awards given by the court have also increased substantially to and employers are increasingly facing challenges honouring them. Further there have been situations where orders by the court are ignored by parties.

FKE continues to engage other relevant stakeholders to ensure that there is an established process of dealing with cases to ensure all parties are subjected to a fair and just system.

Although on a downward trend, the HIV/AIDS epidemic remains a global crisis affecting all levels of society. The business world has not been spared - suffering not only the loss to the workforce but also in terms of profits and productivity, resulting in many new challenges for both employers and employees.

Employers have been experiencing reduced productivity as a result of employee absenteeism and death and are consequently challenged to manage the impact of HIV/AIDS in the workplace, including dealing with issues of stigma and discrimination, changing requirements for healthcare benefits, training of replacement staff, and loss of skills and knowledge among employees.

The leadership role played by business in tackling the HIV/AIDS pandemic is gaining increasing recognition. With the impact of this deadly scourge being felt most among those of working age, HIV/AIDS has become a key workplace issue. Global partnerships are therefore an essential part of the response.

In this respect, FKE has developed close working relations with ILO, UNAIDS and other partners to sustain discussions and the fight against HIV/AIDS at the workplace. FKE has championed the fight against HIV and AIDS Pandemic since 1988,and has developed the first Guideline on HIV and AIDS at the Workplace.

1. Enhance Private Sector capacity to prevent new infections and mitigate the socio-economic impact of HIV and AIDS in the Workplace (and in the surrounding community).
2. FKE launched the National Code of Practice in July 2009
3. Dissemination of the ILO Recommendation on HIV and AIDS and the world of Work, 2010 (No. 200) in July 2011.
4. Clustered HIV and AIDS Enterprise Partnership (CHEP) Network:

The CHEP Network is a Federation of Kenya Employers strategy to increase reach and promote sustainability of the HIV interventions in the world of work among Employers. Companies in counties come together to form a cluster where they share their experiences on how to minimize the incidence of HIV at their workplaces and mitigate the negative impact of HIV and AIDS.

Africa has a population of almost 200 million people aged between 15 and 24. This category makes up 40% of the workforce, and 60% of the unemployed active labour force. This number is expected to double by 2045, bringing a big challenge on African Economies since high youth unemployment is an impending threat to stability in Africa. This is a problem that the continent must address to avert uprising and therefore maintain peace to attract investment and create wealth and the much needed employment.

Although the overall unemployment in Kenya is at 12.7 percent, Youth (15 – 34 year olds), who form 35 percent of the Kenyan population, have the highest unemployment rate of 67 percent. Over one million young people enter into the labour market annually without any skills some having either dropped out of school or completed school and not enrolled in any college.

FKE continues to partner with the Government of Kenya to ensure businesses are supported to be productive and competitive enough to create and sustain new jobs; entrepreneurship and innovation is nurtured and developed to create opportunities for youth to get jobs.

FKE also offers Business Development Services to young people in Kenya utilizing the ILO Youth Entrepreneurship Facility (YEF) tool referred to as Start and Improve Your Business. The tool comprises of Start your Business (SYB) ,Generate your Business Idea (GYBI) and Improve Your Business(IYB), The ILO’s Start and Improve Your Business (SIYB) programme is a signature ILO training tool that is used in over 100 countries worldwide.

The shortage of skilled people is one of Africa’s most challenging issues to address. Employers are at the forefront of increasing global recognition that employability and life-long learning lie at the heart of a range of key global economic and employment challenges.

An effective job creation strategy will only be effective if the government and the private sector work together to establish demand and supply of skill sets that will enable Kenya to utilise its resources effectively. The country’s skills audit should inform its job creation strategy and address skills mismatch, lack of information industry skills and inadequate funding of vocational institutions.

FKE is a key proponent for government to engage with employers to address this challenge through improvements in the quality of education, provision of relevant courses and internship programmes.

The Labour market is one of the most important components of an economy. It is the mechanism through which a country allocates its most valuable and productive resources: human work, effort, creativity, and ingenuity. It is through the labour market that human skills, supplied by individuals seeking to earn a living, are matched with the demand for labour by enterprises, governments, and households. Therefore, the efficiency and performance of the labour market should be central to the priorities set by government, enterprises, and citizens in a country.

Unfavorable industrial relations have an adverse effect on the economy as they slow the pace of government in implementing its development agenda and erode the productivity and competitiveness of businesses. A dominant feature of both the advanced and developing economies today is that economic policy has become more and more dependent upon a process of consensus building.

FKE advocates for tripartite arrangements and commitment to social dialogue. This will make policy formulation and implementation easier, social disruptions will be minimized and citizens can be guaranteed certain basic benefits such as a good standard of living, equitable wages and conditions of service and the rule of law.

FKE and its member play an active role nationally in combating child labour and advocating access to education for children around the world. Child labour, particularly in its dangerous and exploitative forms, is intolerable both because of its inhumanity and the negative long-term consequences for the economic and social well-being of the children concerned.

Education is a crucial component of any effective effort to eliminate child labour. It is for this reason that FKE works with employers in Kenya to address Child Labour through the following interventions;

The ‘Adopt-a-school initiative’ is one of FKE’s successful strategies within the Child Labour project to minimize child labour among Employers in Kenya. This initiative calls upon Employers in Kenya to fight child labour through supporting schools with infrastructure development, school feeding, income generating activities, bursary schemes and uniforms. The main strategy of the ‘Adopt-a-school’ has been to promote improved access of education, equity, and improved transition rates from primary to secondary schools.

FKE with support from ILO is also implementing SNAP (Support National Action Plan) to enhance the role of employers through promotion of safe work for youth in the elimination of Child Labor. The project’s objective is to support young workers and business owners in the informal sector to realize better working conditions.