Kenya’s economy is showing renewed signs of recovery as private sector activity expands and job creation accelerates, offering hope for improved employment prospects and salary growth for workers. Official data indicates the economy grew by 4.9 per cent year‑on‑year in the third quarter of 2025, led by construction, agriculture and mining, signalling strengthening output after recent headwinds.
The private sector concluded 2025 with sustained expansion, with the Purchasing Managers’ Index (PMI) above the growth threshold, reflecting higher business activity, stronger demand and rising confidence among firms. This growth has translated into increased hiring, with employment growth reaching its highest level since late 2019.
In addition, government and private initiatives are contributing to job creation across multiple sectors. The Affordable Housing Programme has generated hundreds of thousands of jobs directly and indirectly, particularly benefiting artisans and small enterprises, while special economic zones and enhanced credit access for micro, small and medium enterprises (MSMEs) are expanding employment opportunities.
Analysts say improved economic indicators such as reduced inflation, stronger revenue collection and a firmer exchange rate are helping to stabilise the macro‑economic environment, encouraging investment and business expansion. The Deputy Chief of Staff for Performance and Delivery emphasised that Kenya has moved from precarious economic conditions earlier in the decade to a firmer footing due to deliberate fiscal and monetary interventions.
Workers are also seeing movement in salary bands, particularly in the formal sector where more jobs paying Sh50,000–Sh99,999 per month have been created over recent years, reflecting a gradual shift towards better‑paid employment.
Although challenges remain, including slow real wage growth and persistent cost‑of‑living pressures, the combination of rising private sector activity, targeted government programmes and stabilising macro indicators suggest an improving economic outlook with positive implications for jobs and wages.
By Amos
