The Kenya National Bureau of Statistics (KNBS) Economic Survey 2026 highlights significant wage growth in Kenya's private sector, with average annual earnings reaching KSh 1.04 million in 2025, up 7.9% from the previous year.

Private Sector Surpasses Public Sector Pay

Private sector employees earned about 19% more than their public sector counterparts, who averaged KSh 874,300 annually. Public sector wage growth lagged at 1.5%, compared to the private sector's robust increase.

Top Paying Industries

The highest average salaries were reported in extraterritorial organisations, including diplomatic missions and foreign government agencies, with annual wages of KSh 4.47 million. Financial and insurance activities, such as banks and pension funds, followed with KSh 2.62 million, closely matched by the electricity, gas, and steam supply sector.

  • Extraterritorial organisations: KSh 4.47 million annually (5.5% increase)
  • Financial and insurance activities: KSh 2.62 million (10.1% increase)
  • Electricity, gas, steam supply: KSh 2.62 million (6.3% increase)
  • Professional, scientific and technical services: KSh 2.0 million (8.3% increase)
  • Administrative and support services: KSh 1.99 million (11.5% increase)

Wage Disparities and Employment Trends

At the lower end, agriculture, forestry, and fishing workers earned an average of KSh 434,638 annually, less than 10% of extraterritorial workers’ wages despite representing 13.9% of private sector employment. Domestic employment and water supply sectors reported even lower wages around KSh 360,000.

Total employment outside small-scale agriculture rose to 21.6 million in 2025, with the informal sector accounting for 87.2% of new jobs. Formal wage employment in the modern sector increased by 3.1% to 3.3 million workers, with manufacturing leading private sector employment and construction showing the fastest growth.

This data underscores the widening wage gap between capital- and knowledge-intensive industries and traditional sectors, reflecting Kenya’s evolving economic landscape.