What hotels can do to reduce high number labour disputes

The hospitality sector is a cornerstone of Kenya’s economy, directly employing over 1.1 million people and supporting millions more through indirect channels such as agriculture, manufacturing, and transport.

As Kenya positions itself as a premier tourist destination supported by increased international arrivals and infrastructure investments such as the Dongo Kundu bypass, the need to align labour laws with sectoral growth remains pivotal.

Hospitality is uniquely people-driven, the quality of service, the warmth of a welcome, and the smoothness of a guest’s stay are all dependent on frontline staff including chefs, waiters, housekeepers, and receptionists who interact directly with customers.

However, the industry also operates under tight margins and seasonal fluctuations. These competing elements often bring labour laws, staff welfare, and business efficiency into question.

In recent years, the Employment and Labour Relations Court has handled a growing number of disputes within the hospitality sector. Many of these are linked to violations of Kenya’s Employment Act, 2007, particularly around issues such as poor working conditions, non-payment of statutory dues, and lack of adherence to minimum wage standards.

According to statistics from the Kenya Union of Domestic, Hotel, Educational Institutions, Hospitals and Allied Workers, almost 40 per cent of grievances originate from unclear employment terms and unpaid overtime.

On the other hand, employers also cite real constraints. Hotel owners and managers grapple with high utility bills, cost of goods, and currency fluctuations, all while delivering exceptional service.

During low seasons or unexpected downturns like the recent pandemic or political unrest, labour becomes one of the more challenging costs to sustain. Some properties are forced to downsize or restructure rapidly, which if not handled lawfully, creates legal exposure.

The path forward requires proactive alignment and clarity in employment terms. Every employee, whether casual, part-time, or full-time, must have a contract that clearly defines working hours, duties, benefits, and grievance procedures. These terms must be explained to the employee and made accessible in a form the recipient understands.

Second, consistency in HR practices is the co-driver behind these employment terms. A good staff handbook, periodic training on rights and responsibilities, and fair dispute resolution mechanisms can reduce tension and build trust. Employers must invest in ongoing HR capacity building both as a business imperative and a legal requirement.

Collaboration with regulatory bodies is equally vital. The Ministry of Labour, National Industrial Training Authority, and Tourism Regulatory Authority all have roles to play in creating platforms for training, dialogue, and enforcement. These agencies should continue to partner with private sector players to ensure that compliance is constructive and enabling and not deemed punitive.

We must also acknowledge the role of guests and the market force. With rising global awareness on ethical tourism and sustainability, hotel brands that uphold good labour practices are more likely to win the trust of socially conscious travelers. Labour compliance in this case serves as both a legal requirement and a brand enhancer.

When employee welfare and operational efficiency are aligned, the result is a more resilient, ethical, and competitive sector for all.

Ms Achieng is the Group Legal Manager at PrideInn Hotels, Resorts & Camps