Fresh signs of inflation-related troubles are emerging in the Kenyan labour market with thousands of workers beginning to demand salary increments.

This comes at a time when labour experts are warning that rogue inflation could stir industrial unrest in the country, thus disrupting economic growth, putting more pressure on the Government.This week alone, teachers and lower cadre civil servants who constitute more than 300,000 workers - have renewed calls for a salary review.

Analysts said inflation has added impetus for the workers to demand implementation of agreements signed between them and the State. Demand for higher salaries could be the worst wave of pressure yet that the Government, still smarting from teething problems since it was constituted months ago, will have to deal with.

Inflation rose to a record high of 31.5 per cent last month buoyed by high food and fuel prices. But this came even as it emerged yesterday that the Ministry of Foreign Affairs had shelved a plan to increase salaries for High Commissioners and ambassadors as recommended by head of Civil Service Francis Muthaura early last year.

Foreign Affairs Minister Moses Wetang'ula was taken to task to explain to Parliament why the plan was shelved. He is expected to issue a ministerial statement on the matter next week.

Several MPs, led a former diplomat and Nominated MP, Mohammed Affey, claimed that discontent was brewing among Kenyan envoys over the shelved pay scheme.

A letter seen by Business Daily signed by Mr Muthaura indicated the envoys would get increments ranging between Sh30,000 and 50,000.

Now, trade unionists and labour market analysts are raising the alarm that company executives should brace for more strike alerts as workers unions push for better pay to cushion their members from the sharp fangs of living.

"The purchasing power is getting eroded and this will in the short-run trigger spiral agitation for wage increases across the job market," said Jacob Omollo, a labour researcher at the Institute of Policy analysis and Research (IPAR).

"Given the surging production costs, employers may also not be willing to incur the additional expenditure on workers which could cause a wave of industrial unrest," said Mr Barasa.

With the costs of living having hit the roof, workers are pressing for higher pay like never before in the history of Kenya. But employers say they are constrained financially due to increased costs of production.Among the concerns by civil servants are salary disparities among the various cadres with head-teachers meeting in Mombasa this week demanding more than 100 per cent pay rise.

Prime Minister Raila Odinga however, appealed for patience among teachers, saying the issue of teacher remuneration was a priority for the Government.

"While we have genuine resource constraints that prevent full parity, the current gap is huge and unacceptable," he said when he opened the headteachers' annual meeting in Mombasa on Tuesday.The highest paid teacher, a chief principal, is entitled to a monthly basic salary of Sh44,990 while a civil servant in that grade earns Sh120,217.

The Government is also embroiled in a pay rise dispute with its lower cadre workers on the collective bargaining agreement they negotiated with the State last year which the latter refused to sign citing financial constraints.