Several factors determine employee salaries, including supply and demand, rates prevailing in the industry, labour unions and, most importantly, employers.
A report by ICEA Lion on employment trends in Kenya from 2014 to 2018 has listed the best-paying jobs in the private and public sector.
In the private sector, which accounts for approximately 70 per cent of formal employment, the report ranks financial services and energy sector employees as the best paid in 2018. It indicates that financial services employees pocketed an average monthly salary of Sh150,000 last year, while those in the energy sector earned an average of Sh141,666. Administrators’ salaries averaged Sh133,333 a month that year.
Interestingly, private sector employees in sectors that contribute the most to the country’s economy were the lowest paid. For instance, those in the manufacturing sector earned an average annual salary of Sh41,813 a month, while hospitality workers averaged Sh36,166 and agriculture staff Sh27,833.
Hospitality industry employees working for the Government, however, were much better paid last year, taking home an average of Sh150,000 a month.
Other well-paid public sector employees included those in transport and financial services, who earned Sh141,666 on average.
Meanwhile, personnel in trade, energy and health sectors earned Sh108,333.
The lowest-paid employees in the public sector were those in education, who earned an average monthly salary of Sh55,416; in public administration, who earned Sh47,833; and agriculture at Sh36,000.
And when it comes to creating formal job opportunities, education, construction, ICT and health sectors take the lead. Trade, hospitality and manufacturing sectors dominate in informal job creation.
Approximately 17 million Kenyans are employed, with the informal sector accounting for more than 80 per cent of all jobs.