The average Kenyan worker earned less in 2024 than at any other point in the past five years, even as inflation and the cost of living continued to rise.
According to the latest Kenya National Bureau of Statistics (KNBS) Economic Survey data, the real annual average earnings per employee dropped to Ksh665,418.2 in 2024, the lowest figure recorded since 2020.
This marked a consistent downward trend from the 2020 high of Ksh747,083.3 and is an indicator of declining purchasing power among workers across both public and private sectors.
Although the private sector saw a slight increase in average earnings, from Ksh686,450.7 in 2023 to Ksh689,300.7 in 2024, public sector wages took a sharp dip, falling from Ksh625,869.9 to Ksh614,288.7 in the same period.
Moreover, sectors such as Education, Public Administration and Defence, and Health and Social Work recorded some of the steepest declines.
For instance, education sector workers saw their average earnings drop to Ksh511,613.9, a significant cut from Ksh525,542.3 in 2023, and well below 2020 levels.
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Wage Inequality Between Sectors for Kenyans
On the other hand, in 2024, those working in the Financial and Insurance Activities sector were the highest paid, with an average of Ksh1.63 million per employee.
Agriculture, forestry, and fishing workers earned an average of just Ksh300,081.7, making them among the lowest-paid in the country.
While some industries, like Construction and Professional, Scientific and Technical Activities, showed modest wage growth, it was not enough to offset overall declines driven by inflation and slowed economic expansion.
The figures represent real earnings, meaning they have been adjusted for inflation, offering a more accurate picture of actual purchasing power.
The decline shows that even when employees receive nominal salary increases, rising inflation affects the final value of their income.
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Growth of Job opportunities
Despite falling real wages, employment in the modern and informal sectors, excluding small-scale agriculture, grew to 20.8 million in 2024, up from 20.0 million in 2023.
A total of 782,300 new jobs were created across the economy, with the informal sector contributing a staggering 90% (703,700 jobs) of the total, although slightly fewer than the 720,900 jobs added in 2023.
Also, the modern sector added 78,600 new jobs, representing a 2.4% increase.
However, in the private sector, wage employment rose by 2.1%, down from 3.3% in 2023. Manufacturing and Agriculture, Forestry and Fishing led in job creation, accounting for 15.9% and 14.1% of private sector employment, respectively.
The public sector saw a 3.1% increase in wage employment, slower than the 5.9% growth in 2023.
Most public sector jobs were concentrated in Education (45.2%) and Public Administration and Defence (34.4%), highlighting the government’s continued reliance on service-oriented functions.
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