Generally, employment in different job setups earns differing remuneration and benefits, as some are higher than others. However, it also narrows down to skills and training that suit the various jobs in the economy.
Energy Sector vs Bankers and NGOs
The energy sector has surpassed financial services in the ranking of Kenya’s highest-paying employment. This is due to growing foreign investment.
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According to statistics from the Kenya National Bureau of Statistics (KNBS), employees in the power and gas industries earned an average of Sh182,346 per month last year, up from Sh173,103 in 2021. Last year, this segment’s average compensation surpassed financial services as the second-highest-paying sector.
With an average compensation of Sh325,349 per month, non-governmental organizations (NGOs) surpassed energy and financial services, which offered Sh181,618 per month.
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Because of growing foreign investment, the energy sector has surpassed financial services in the ranking of Kenya’s highest-paying employment.
Foreign-funded non-governmental organizations (NGOs) have long received high salaries since they are well-funded and rely largely on highly qualified personnel.
International oil companies have also invested in Kenya’s oil and gas sector, petroleum retail, and renewable energy, specifically wind and solar power generating.
This has contributed to a 5.3% increase in average pay in the industry, compared to 4.6% and 3.9% increases in financial services, which includes banks, insurance companies, investment firms, and NGOs, respectively.
Private Sector
Last year, the three highest-paying sectors behind the private sector average pay growth of 5.6%
Inflation wiped out the 5.6% compensation increase provided to private sector workers last year, marking the third year in a row that pay raises trailed behind rising living costs.
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According to the findings of the KNBS’s annual economic survey, average earnings for workers in the private sector increased by 2.6% in 2021 and 3.6% in 2020.
When adjusted for rising prices or inflation, incomes declined by 2.7% in a year when the cost of living gauge soared to levels seen more than five years ago, owing partly to the Ukraine war and drought.
Agriculture, manufacturing, wholesale and retail were the leading employers outside of state security and public school instructors.
Agricultural Sector
Agriculture employed 341,600 people, whereas manufacturing, wholesale, and retail employed 352,600 and 267,900 people, respectively.
However, the dominating employers lagged behind other sectors in terms of remuneration, demonstrating the growing inequality in the formal sector.
The average wage in agriculture was Sh33,231, manufacturing was Sh51,470, and wholesale and retail was Sh78,505.
Earnings inequality has been linked in part to the prior centralised system of government, which governed resource sharing since Independence.
The decentralized system of governance, which began in 2013, raised hopes of resolving the economic imbalance, with analysts stating that incentives are needed to entice private investment to counties and spread wealth.
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Agriculture, manufacturing, wholesale and retail were the leading employers outside of state security and public school instructors.
Agriculture employed 341,600 people, whereas manufacturing, wholesale, and retail employed 352,600 and 267,900 people, respectively.
Kenya’s GDP increased by 4.8% last year, down from 7.6% the previous year. This is due to agricultural output being hampered by a severe drought.
Formal & Informal Sectors
The number of new formal sector employment was 109,300, down from 163,500 in 2021. This is a blow to the over one million young people who graduate from colleges and secondary schools.
Workers in household activities in the formal sector, such as nannies and domestic workers, earned Sh26,165 per month.
Other low-income industries included water supply and waste management (Sh25,019) and real estate (Sh28,258).
