COFEK Warns Funding Gaps Are Undermining the National Labour Board’s Mandate

By benadeta mwaura - Reporter

Kenya, January 26, 2026 - The Consumers Federation of Kenya (COFEK) has sounded the alarm over a crippling lack of funds for the National Labour Board (NLB), warning that the board’s prolonged inactivity risks undermining industrial harmony, workforce development and productivity across sectors.

In a letter to Labour and Social Protection Cabinet Secretary Alfred Mutua, COFEK Secretary General Stephen Mutoro said the NLB, a statutory advisory body meant to guide labour policy and dispute resolution, has not met since April 2025 due to a complete absence of budgetary allocation.

The body has increasingly relied on external partners like the International Labour Organization (ILO) to fulfil part of its mandate, a temporary fix that fails to address structural gaps. Although advisory in nature, the National Labour Board (NLB) plays a central role in Kenya’s labour ecosystem, providing guidance that helps shape workforce policy and industrial relations.

Its work ensures that the country’s labour market operates efficiently and supports both workers and employers. The board’s functions are wide-ranging. It is tasked with assessing employment trends and identifying skills gaps, helping to align training programs with the needs of the economy.

It also plays a key role in identifying training and manpower development needs, ensuring that workers are equipped with the skills required for productivity and competitiveness. In addition, the NLB is responsible for monitoring productivity performance across various sectors, providing data and recommendations that inform policy and management decisions.

The board also advises on appointments to the Industrial Court and contributes to shaping labour policy frameworks, ensuring that legal and regulatory structures are aligned with both workers’ rights and economic growth objectives.

COFEK argues that the board’s inactivity weakens oversight of labour relations at a time when Kenya is dealing with rising unemployment, mismatches in skills, and pressures on productivity, challenges that are central to both economic growth and the implementation of the government’s BottomUp Economic Transformation Agenda.

More from Kenya

Ethiopia Signals Major Airpower Leap as PM Abiy Targets Fifth-Generation Air Force By 2030

Corridors and Runways: How Kenya and Ethiopia Are Re-Engineering Regional Power

Mutoro said it is “unacceptable” that the NLB has not convened for nearly a year, accusing both the labour ministry and the board’s leadership of failing to comply with legal requirements on engagement and governance.

This prolonged standstill, he warns, threatens industrial harmony, weakens labour oversight and could ultimately deter investment and undermine private sector confidence if unresolved. With unresolved disputes piling up and no active platform for government labour employer dialogue, calls for structural reform are growing louder.

COFEK has urged the ministry to immediately allocate adequate resources, convene the board without further delay, and outline short, medium and long term plans to restore the NLB’s functionality. COFEK also said it may pursue legal or parliamentary interventions to protect the NLB’s mandate if action is not taken swiftly.

Among its key recommendations is a review of the Labour Institutions Act to potentially empower the Labour Commissioner with administrative authority to make urgent decisions, backed by a semi autonomous secretariat equipped to manage data, research and stakeholder engagement.

This push for reform comes amid broader debates over workforce policy, labour rights, and the role of state institutions in shaping productive, fair and competitive labour markets, issues that are increasingly central to Kenya’s economic resilience and sustainability.

COFEK’s warning underscores a growing concern that Kenya’s labour governance framework is atrophying due to funding shortfalls. The prolonged stagnation of the National Labour Board threatens to weaken dispute resolution, labour policy guidance and productivity oversight, all of which are critical as the country seeks to boost employment, enhance skills and attract investment in a tighter global economic climate.