COVID-19 shaves Ksh.11,285 from Kenyans average real earnings

The COVID-19 pandemic has shaved off Ksh.11,285 from Kenyans average annual real earnings according to new data from the 2021 Economic Survey.

According to the data, real average earnings fell by 1.5 per cent across 2020 to Ksh.740,494 or Ksh.61,708 per month translating to a loss of about Ksh.940 per month.

The real average earnings can be loosely defined as personal earnings adjusted for inflation.

Despite the impact of the COVID-19 pandemic on earnings particularly from pay cuts implemented across 2020, nominal average incomes (earnings + inflation) rose by three per cent to Ksh.801,700 or about Ksh.66,803 per month.

“The slower growth in average earnings could be due to the implementation of pay cuts by employers in response to the negative impact of the COVID-19 pandemic,” reads the Economic Survey report.
The high average incomes however barely uncover discrepancy in earnings among all Kenyans.

Additional data covering earnings however reveals the extent of the gap in earnings per sector.

For instance, in the private sector, employees in the energy, finance & insurance, administration and support services hold the highest real earnings in contrast to the rest of the economy.

Individuals in the energy,gas steam and air condition supply for instance have real average annual earnings of Ksh.1,895.801, translating to wages of about Ksh.157,983.

In the public sectors, employees in transport & storage, accommodation & food services, finance and insurance have the highest average real earnings.

At the bottom, household employers producing goods for their own consumption, real estate workers and employees in agriculture have the least earnings.

For instance the average worker in agriculture, forestry and fishing posted Ksh.347,599 in real earnings last year translating to about Ksh.28,967 in monthly wages.

Average gazetted monthly basic minimum wages in urban ares by the Ministry of Labor and Social Protection further lays bare low earnings especially for casual laborers.

According to the data, a general laborer including a sweeper, cleaner, gardener, house manager and messenger takes home Ksh.13,573 every month in Nairobi, Mombasa and Kisumu, and Ksh.7,241 in other towns.

Meanwhile, a night watch man has an average wage of Ksh.15.141 per month in Kenya’s three cities and Ksh.8,636 across other towns in the country.

In its analysis of the earnings data, Citizen Digital controlled the data set by leaving out wages earned by employees engaged in the activities of extraterritorial organisation and bodies.

The niche class of workers had real average earnings of Ksh.3,417,484 translating to earnings of about Ksh.284,790 per month.

With thousands of Kenyans lamenting painful pay cuts in periods covering the stay of the pandemic, the data may musk the net effect of the revision in earnings across 2020.