With a population standing at 54.68 million, Kenya encapsulates a diverse economic landscape characterized by a GDP of 101 billion USD in the fiscal year 2021.
As of the first quarter of 2023, Kenya’s economic trajectory reflects a commendable growth rate of 5.3%, marking a noteworthy recovery from the preceding three months’ decline of 3.7%. However, the specter of the Russia-Ukraine conflict looms large, casting shadows on global supply chains and influencing Kenya’s economic dynamics. Undeterred, the Kenyatta government remains resolute in its commitment to positioning development and economic growth at the forefront of its administration’s agenda.
The heartbeat of Kenya’s market size resonates in its agricultural goods and animal husbandry sectors, which absorb nearly 75% of the working-age population through seasonal part-time employment. In a strategic move, the government has implemented measures to attract foreign companies and investments, aimed at amplifying employment opportunities. The anticipated economic growth of 5.1% augurs well for absorbing Kenya’s job-seeking populace, with concerted efforts underway to enhance the manufacturing and service sector infrastructure, further catalyzing employment generation.
In navigating the challenges posed by global conflicts, Kenya stands poised to harness its economic potential, leveraging agriculture, foreign investments, and targeted improvements in infrastructure to propel sustained growth and offer employment opportunities for its vibrant population.
Kenya’s economic tapestry is intricately woven with diverse export partnerships, with Uganda, the U.S., and Pakistan emerging as major collaborators. The total export value, nearly USD 10 billion, underscores the significance of Kenya’s contributions to the global market. This is primarily fueled by a rich array of export products ranging from crops, fruits, flowers, coffee, and vegetables to commodities such as cement, soda ash, and dairy products. The government, displaying a forward-looking approach, actively pursues the expansion of trade routes, reaching across the Americas, Asia, and Europe.
In recent years, Kenya has strategically directed investments into the manufacturing and services sector. Substantial funding flows into pivotal areas such as the IT industry, tourism, health, infrastructure, and trading, reflecting a multifaceted approach to economic development.
On the import front, China and India stand as key partners, contributing to an import value of approximately USD 18 billion. Import products encompass machinery, transport equipment, petroleum products, and chemical goods, highlighting Kenya’s engagement in the global supply chain.
Kenya’s natural riches, showcased through its rare and captivating flora and fauna, position tourism as a cornerstone of foreign direct investment and exchange. Wildlife sanctuaries and national parks become focal points, attracting global visitors and enhancing the country’s economic resilience.
The economic landscape thrives on small-scale industries, primarily engaged in the production of consumer-related goods like plastics, soaps, and clothing. These industries not only contribute significantly to the economy but also form the backbone of employment for a substantial portion of the population, ensuring a steady income stream. The transportation system, while already robust, undergoes continuous development, aligning with Kenya’s commitment to progress.
In tandem, Kenya’s economic evolution places a spotlight on enhancing energy resources, with the government actively encouraging companies and the service sector to adopt policies supporting flexible employment terms. This multifaceted strategy underscores Kenya’s dynamic approach to sustainable economic development and growth.
A nation’s cost of living is influenced by a number of variables, including the city in which a person resides, the predominant industry in the area, state revenue, infrastructure, and much more. The primary determinant of cost of living is location. The cost of living in Kenya is shown in the following table.
| Category | Area of Expense | Estimated Monthly Cost (USD) |
| Rental | Hostels, PGs, Shared flats, and single accommodation | $60 ~ $500 |
| Food and beverage | Household groceries and House helps | $55 ~ $150 |
| Transport costs | Bus train and metro | $25 ~ $60 |
| Utilities and miscellaneous | water, electricity, gas, wi-fi, telephone | $100 ~ $450 |
Navigating the cost of living in Kenya unveils a spectrum influenced by factors such as location, accommodation type, eating habits, and lifestyle choices, with average monthly rentals ranging from USD 100 to 400. This cost dynamic, significantly more affordable than in the United States, underscores Kenya’s appeal as a destination with economic advantages.
The geographical context plays a pivotal role in determining the cost of living, creating a tier-wise classification of cities. Tier 1 cities, including bustling metropolises like Nairobi and Mombasa, boast higher salaries and consequently elevated living costs. In parallel, emerging capital cities like Kajiado, Machakos, and Kisumu are labeled as New Tier 1 towns, showcasing rapid growth.
Tier 2 cities, characterized as provincial capitals or economically progressive urban centers like Nandi Hills, Malaba, and Kakuma, occupy a middle ground in terms of living costs. Meanwhile, Tier 3 cities, smaller in scale and marked by modest economic growth, offer a more economical lifestyle.
This tiered categorization not only provides insights into regional economic disparities but also serves as a valuable guide for individuals seeking to balance living expenses with the economic landscape of their chosen Kenyan locale. As Kenya positions itself as an attractive destination, understanding the nuances of its diverse cost of living becomes essential for residents and newcomers alike.
| Category | Area of Expense | Estimated Monthly Cost (USD) |
| Rental | Hostels, PGs, Shared flats, and single accommodation | $60 ~ $500 |
| Food and beverage | Household groceries and House helps | $55 ~ $150 |
| Transport costs | Bus train and metro | $25 ~ $60 |
| Utilities and miscellaneous | water, electricity, gas, wi-fi, telephone | $100 ~ $450 |
| Tier of the city | Salary in (USD) | Cost of Living in (USD) | Rent in (USD) | |||
| Cities classified as Tier 1 | $800~ $1700 | $150 ~$300 | $70 ~ $600 | |||
| Newer Tier 1 Cities | $,650~$1,300 | $100 ~ $250 | $65~ $400 | |||
| Tier 2 | $350~$1000 | $90 ~ $200 | $60 ~ $300 | |||
| Tier 3 | $250 ~ $850 | $70 ~ $160 | $50 ~ $250 | |||
| S.No | Industrial Sector | Growth Percentage in terms of hiring and revenue | ||||
| 1. | Energy | 40% | ||||
| 2. | Transport | 35% | ||||
| 3. | Tourism | 55% | ||||
| 4. | Real Estate | 25% | ||||
| 5. | Education | 20% | ||||
| 6. | Finance | 25% | ||||
| 7. | Agriculture | 30% | ||||
| 8. | Software/Hardware & IT | 25% | ||||
| 9. | Health | 20% | ||||
| 10. | Manufacturing | 30% | ||||
One important thing to keep in mind when hiring new employees is the expense of doing so. It relies on a number of different variables, including the cost of living in the community and total expenses incurred by the resident. The cost of recruiting in a given city is influenced by a number of significant factors, including:
Salary structure for various roles
| Working areas | Average monthly gross salary by survey (in KES) |
| Agro and Food Industry | 75,000 |
| Arts & Culture | 90,000 |
| Banking | 100,000 |
| Chemical Industry | 70,000 |
| Construction & Real Estate | 80,000 |
| Finance and Economics | 150,000 |
| Education, and R&D | 150,000 |
| Engineering | 120,000 |
| Journalism & Media | 170,000 |
| Marketing and Advertising | 150,000 |
| Technology and AI Development | 140,000 |
| Telecommunications | 90,000 |
| Textile, Apparel and Shoe industry | 50,000 |
| Tourism, Food and Hotel Business | 100,000 |
| Pharmaceutical Industry | 85,000 |
| Medicine and healthcare | 300,000 |
| Legal Department | 170,000 |
| IT Sector | 130,000 |
Rules pertaining to pay, leave and rest, health and safety, the special status of women and children, and termination of employment are provided by the Regulation of pay and Conditions of Employment Act (Cap. 229) and the Employment Act (Cap. 226).
The landscape of hiring activity in Kenya has witnessed a remarkable transformation, particularly in the realm of remote and technology work, surging by an impressive 800%. This surge has engendered a robust pool of skilled workers spanning various industries, marking Kenya as a burgeoning hub for talent acquisition.
As the economies of key cities, most notably Nairobi, undergo fortification and evolution, the skills and competencies of prospective candidates continue to advance. For businesses seeking to tap into this dynamic talent pool, Kenya emerges as a prime destination.
In the year 2023, several top companies are leading the charge in hiring across various sectors. Safaricom, renowned for its prowess in cable, internet, and telephone services, stands out alongside industry giants like KPMG in business consulting and Deloitte, PwC, and EY in accounting and tax services. These companies are lauded not just for their business acumen but also for their commitment to fair employee treatment, particularly in navigating the paradigm shift toward remote work positions. This employee-centric approach has solidified their status as some of the best employers in Kenya in 2023, marking a crucial hiring trend aligned with enhancing the overall employee experience.
The demand for specific skills and job titles is also reflective of this evolving landscape. Positions such as Software Engineers, Executive Assistants, Remote SAS Programmers, Statistical Programmers, and Contract Assessors are in high demand. Moreover, industries such as technology, tourism, agriculture, real estate, and transport are witnessing a surge in job opportunities, indicating a multifaceted demand for skills across diverse sectors.
With these prevailing trends, businesses can strategically devise recruitment strategies to attract and onboard the best remote talent available in Kenya. The dynamism of the hiring landscape in the country underscores its emergence as a key player in the global talent marketplace.
The process of recruiting in Kenya is complex and demands in-depth understanding of local customs, legislation, hiring expenses, cost of living in various cities, and other factors. Marzuna joins the team as a one-stop shop that can handle every little detail of hiring. It relieves you of the burden of hiring and allows you more time and freedom to concentrate on your project and growth strategies. To learn more, get in touch with Marzuna Experts.
