Kenya’s middle-income workforce has expanded significantly. New Kenya National Bureau of Statistics (KNBS) data shows 1.5 million workers now earn between Sh50,000 and Sh100,000 monthly. This salary band saw the most job growth over five years to 2024.
Record Growth in Middle Salary Band
Companies and public entities created 206,617 new jobs in the Sh50,000-Sh100,000 range between 2020 and 2024. These positions represent 43.8 percent of all 471,191 formal jobs created during this period.
The number of workers in this bracket grew from 1.25 million to 1.46 million. That’s 16.5 percent growth in Kenya’s most populated wage category. Currently, 45.5 percent of Kenya’s 3.2 million formal workers earn within this band.
Private companies drove this growth. They contributed 69.1 percent of new earners in this salary range. The government created the remaining positions.
Where the Jobs Are
Education leads employment in the Sh50,000-Sh99,999 bracket. The sector employs 291,224 workers at this level. Public administration and defence follow with 201,917 employees. Manufacturing comes third with 183,156 workers.
Agriculture employs 105,875 people in this salary band. Trade accounts for 101,968 workers. These jobs include teachers, military personnel, bank tellers, and administrative assistants.
KNBS defines earnings broadly. “Earnings or wages cover all cash payments, including basic salary, cost of living allowances, profit bonus, together with the value of rations and free board, and an estimate of the employer’s contribution towards housing,” the bureau explained.
Lower Wage Categories Show Different Pattern
Workers earning below Sh30,000 saw the biggest percentage increase. This group grew 33.4 percent to reach 319,275 employees. They now make up 9.9 percent of Kenya’s formal workforce, up from 8.7 percent in 2020.
This growth highlights challenges in creating high-paying jobs. Rising taxes and Covid-19’s lasting impact have affected employment quality. Companies struggle to offer better salaries despite expanding their workforce.
The data excludes informal sector workers. “Wage employment figures include casual employees, part-time workers, directors and partners serving on a regular basic salary contract,” KNBS noted. “Self-employed persons and family workers who do not receive regular wages or salaries are excluded.”
High Earners Also Increased
Public and private firms created 86,697 jobs for workers earning above Sh100,000. The private sector provided two-thirds of these positions. This group saw 27.9 percent growth, the second-highest rate.
Their share of the formal workforce grew from 11.3 to 12.4 percent. Despite high growth rates, they remain a smaller portion of total employment compared to middle-income workers.
Sector Distribution Across the Economy
The 2025 Economic Survey shows manufacturing, agriculture, and trade dominate private employment. Together, these sectors employ 42.6 percent of private sector workers.
Manufacturing leads with 15.9 percent of total private employment. Agriculture, forestry, and fishing account for 14.1 percent. Wholesale and retail trade make up 12.6 percent.
In the public sector, teachers dominate. Their numbers hit 410,700 in 2024. Ministry workers total 236,700. County government employees reach 226,500.
The Informal Sector Reality
Formal employment represents just 15 percent of Kenya’s total workforce. The country had 20.8 million workers by 2024. The informal sector employs an estimated 17.4 million people.
Last year demonstrated this imbalance clearly. The economy created 782,300 new jobs total. Only 78,600 came from the formal sector. This underlines Kenya’s heavy dependence on informal employment.
“The total new jobs generated in the economy were 782,300 in 2024, of which 78,600 jobs were created in the modern sector reflecting a growth of 2.4 percent,” the survey showed. “There was a slowdown in the number of new jobs created in the informal sector from 720,900 in 2023 to 703,700 jobs in 2024.”
KNBS cannot provide wage statistics for the informal sector. The bureau focuses on formal employment where companies submit data regularly.
Wage Distribution at Lower Levels
Workers earning below Sh10,000 increased 15.3 percent to reach 12,331 over five years. However, the Sh10,000-Sh15,000 bracket saw a slight decrease. This group dropped to 40,953 workers by 2024.
The Sh15,000-Sh20,000 salary band doubled. It grew from 25,552 workers in 2020 to 57,580 in 2024. This suggests some upward mobility within lower wage categories.
What These Trends Mean
The concentration of job growth in the Sh50,000-Sh100,000 band shows positive movement. More Kenyans are accessing middle-income positions. This strengthens the consumer class and supports economic stability.
However, the massive informal sector presence indicates persistent challenges. Most new jobs still come from informal activities. Formal sector growth remains modest at 2.4 percent annually.
The private sector continues leading job creation in higher salary bands. This demonstrates business resilience despite economic pressures. Yet the 69.1 percent private contribution also shows government job creation lagging.
Education and Public Service Drive Public Employment
Teachers form the backbone of public sector employment. Their 410,700 positions make them the largest government employee group. The Teachers Service Commission (TSC) registered 5.2 percent growth in 2024.
Ministry workers and county employees follow teachers. Together, these three categories dominate public sector statistics. This reflects Kenya’s continued investment in education and governance infrastructure.
Public administration and defence employ 201,917 workers in the middle salary band. This shows government’s role in creating stable, middle-income positions. However, overall public job growth trails private sector expansion.
Manufacturing’s Continuing Importance
Manufacturing employs 183,156 workers in the Sh50,000-Sh99,999 bracket. The sector remains crucial for middle-income job creation. It offers technical positions that support skilled employment.
Overall, manufacturing accounts for 15.9 percent of private sector jobs. This makes it the leading private employer. The sector combines skilled and semi-skilled positions across various wage levels.
Agriculture employs 105,875 people in the middle salary band. While agriculture dominates overall employment at 14.1 percent of private jobs, many agricultural workers earn below this threshold. The middle-income agricultural jobs likely include managers and technical specialists.
Trade Sector’s Role
Wholesale and retail trade employs 101,968 workers earning Sh50,000-Sh99,999 monthly. The sector accounts for 12.6 percent of total private employment. This includes supervisors, specialized sales staff, and administrative roles.
Trade offers diverse opportunities across urban and rural areas. It connects production with consumption. The sector’s employment reflects Kenya’s commercial dynamism and entrepreneurial culture.
Youth Employment Challenges Persist
While middle-income jobs grew, youth unemployment remains problematic. The informal sector absorbs most young job seekers. Many graduates work below their qualification levels.
The slower formal sector growth rate affects youth disproportionately. Young workers need entry-level positions that lead to career progression. The concentration of growth in middle salary bands suggests barriers to junior position creation.
Economic pressures make companies cautious about hiring. They prefer experienced workers for available positions. This leaves young graduates competing for limited opportunities.
Tax and Economic Pressures
Rising taxes have affected both employers and employees. Companies face higher operational costs. Workers see more deductions from gross salaries.
The housing levy introduction at 2.5 percent of gross salary reduced take-home pay. Increased social protection and health cover charges also impacted workers. These factors explain some resistance to formal employment expansion.
Real wages have declined in several sectors despite nominal increases. Inflation erodes purchasing power faster than salary growth. Workers struggle to maintain living standards despite apparent employment gains.
Looking Forward
The Sh50,000-Sh100,000 salary band will likely continue growing. It represents Kenya’s emerging middle class. These workers drive consumer demand and economic activity.
However, sustainable growth requires stronger formal sector expansion. The 2.4 percent formal job growth rate needs improvement. Policy interventions should focus on reducing barriers to formal employment creation.
Tax reform could help. Lower employer costs might encourage more hiring. Streamlined business regulations would support expansion. Investment in technical training aligns workers with available opportunities.
The informal sector needs recognition and support. With 17.4 million workers, it cannot be ignored. Providing basic protections and services would improve worker welfare without forcing formalization.
The Bottom Line
Kenya’s employment landscape shows mixed signals. Middle-income positions grew significantly. The Sh50,000-Sh100,000 bracket added over 200,000 jobs in five years. This creates a stronger middle class.
Yet the formal sector remains small. Only 15 percent of workers have formal positions. The informal economy dominates employment reality. Most new jobs still come from informal activities.
Private companies lead middle-income job creation. They provided 69.1 percent of new positions in the key salary band. Government employment grew more slowly across most categories.
Sectors like education, manufacturing, and trade drive middle-income employment. They offer stable positions with decent pay. These industries should receive policy support to maximize job creation potential.
The data reveals both progress and persistent challenges. Kenya has built a substantial middle-income workforce. But broader formal employment expansion remains elusive. Addressing this gap requires coordinated effort from government, business, and development partners.
