Kenya’s labour market expanded in 2024 with the creation of 782,300 new jobs, mainly in the informal sector, according to provisional data from the Economic Survey 2025 by the Kenya National Bureau of Statistics (KNBS).
- •This pushed total employment outside small-scale agriculture to 20.8 million people, up from 20.0 million in 2023.
- •While job creation remained positive, the pace slowed compared to previous years, raising fresh questions about the strength of Kenya’s post-pandemic economic recovery.
- •Nominal average annual earnings rose to KSh 881,400, up from KSh 832,700 in 2023, driven by moderate pay increases across sectors.
The informal sector continued to drive employment, accounting for 703,700 new jobs in 2024. However, this represented a slowdown from 720,900 jobs created in 2023, signalling a slight cooling in small business and self-employment opportunities.
Informal sector jobs, while critical in absorbing labour market entrants, are often characterized by lower wages, limited job security, and lack of benefits.
The formal sector saw a mild recovery, adding 78,600 jobs in 2024, representing a 2.4% growth in wage employment to reach 3.21 million workers.
Sectors such as manufacturing, services, and education contributed to the gains, though job creation remained modest amid tighter business conditions and restrained corporate expansion.
Labour market data shows solid overall job creation in 2024, though with a slight slowdown compared to 2023. Informal employment remains dominant, while rising wages and easing inflation improved household purchasing power.
| Indicator | 2023 | 2024 (Provisional) |
|---|---|---|
| Total Employment (millions)* | 20.0 | 20.8 |
| Jobs Created (annual addition) | 801,800 | 782,300 |
| Informal Sector Jobs Created | 720,900 | 703,700 |
| Formal (Modern) Jobs Created | 80,900 | 78,600 |
| Share of Informal Jobs (%) | 90% | 90% |
| Nominal Average Annual Earnings (KSh) | 832,700 | 881,400 |
| Inflation Rate (%) | 7.9% | 4.5% |
*Excluding small-scale agriculture.
With inflation falling to 4.5% in 2024 from 7.9% in 2023, real earnings also improved, offering some relief to households.
