Nairobi — Kenyan workers recorded their first rise in real earnings since 2020 in 2025, supported by easing inflation, according to the latest Economic Survey.

Data from the Kenya National Bureau of Statistics shows real average earnings grew by 2 percent in 2025, reversing a 0.3 percent decline in 2024.

"The real average earnings per employee increased from KSh 665.4 thousand in 2024 to KSh 678.8 thousand in 2025," the report noted.

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The growth was largely driven by lower inflation, with the consumer price index rising by 3.8 percent in 2025 compared to 4.6 percent the previous year, allowing wages to outpace the cost of living.

Private sector workers saw stronger gains, with real earnings rising by 3.9 percent, while the public sector recorded a 2.2 percent decline.

In nominal terms, average annual earnings per employee increased to Sh694,253.3 in 2025 from Sh665,529.4 in 2024.

Employment levels also improved, with total wage employment rising by 2.8 percent to 3.3 million, while informal sector jobs grew by 4.1 percent to 18.1 million.

KNBS data further shows private sector nominal earnings grew by 4.5 percent, compared to 3.6 percent in the public sector.

The gains come as Kenya's economy expanded modestly, supported by services sectors even as agriculture slowed due to unfavourable weather conditions.

Despite the improvement, the report indicates wage growth remains gradual, with labour market informality and broader economic pressures continuing to weigh on income growth.