Kenyan workers are poorer today than they were in 2007

by Morris Aron

The highest paid chief executive is from the financial sector and earns Sh3.9 million a month, over Sh100,000 a day and 400 times the salary of the least paid staff. A room steward in the hospitality industry, earns Sh9,450 per month.

Two years ago, the highest paid employee was from the same sector, and earned an average monthly salary of Sh2.5 million, 300 times the least paid permanent staff. The least paid employee at the time was a janitor in the manufacturing and processing industry, earning a meagre Sh8,001.

Widening gap

According to the 2009 PriceWaterhouseCoopers National Human Resource Survey, the statistics confirm the widening gap in salaries between the rich and the poor, and indicates that the Kenyan workforce is poorer now compared to 2007. This is due to raging inflation, which averaged at 22.68 per cent in 2008/09, against an average annual salary increment of 10.6 per cent.

"The survey indicates that on average, salaries being earned now can buy less than two years ago, despite the annual reviews, due to high inflation," said Kuria Muchiru, a senior partner with PWC.

A CEO at a meeting. The highest paid CEO earns 400 times what the lowest paid employee earns. Photo: courtesy

Human resource professionals said that harsh economic times brought about by post election violence, and worsened by drought, high food prices, cost of doing business and the global credit crunch, had only worsened the situation, and pushed companies into adopting cost cutting measures, including lay-offs.

Of the companies surveyed, 61 per cent said they had felt the effects of post election violence, drought, global recession and low economic growth.

According to the survey, three out of every ten companies retrenched staff, 3 per cent closed some branches or ended operations in particular service areas while 6 per cent made pay cuts.

But even as firm’s battle with the effects of the slowing economy, human resource practitioners are having a hard time in dealing with the ‘generation Y’.

According to the survey, generation Y, though hardworking, are looking for non-convectional ways away from the usual office set up.

Generation Y want access to online social networks during office hours, flexible dress code and working hours, while some prefer working from home.

About 84 per cent want to receive ongoing feedback from informal settings, while over 90 per cent want to access their superiors whenever they need to.

"It is a challenge that is going to generate a lot of debate in the coming months," said George Hapisu, Consulting director in the people and change at PWC.