A Brief Glimpse of Industries

Kenya’s economic fabric is intricately intertwined with diverse export collaborations, with Uganda, the U.S., and Pakistan emerging as major partners. The total export value, nearly USD 10 billion, underscores Kenya’s significant contributions to the global market. This is primarily driven by a diverse array of export products, including crops, fruits, flowers, coffee, vegetables, as well as commodities such as cement, soda ash, and dairy products. Demonstrating a forward-looking approach, the government actively pursues the expansion of trade routes, extending across the America, Asia, and Europe.

In recent years, Kenya has strategically channeled investments into the manufacturing and services sector. Substantial funding flows into critical areas such as the IT industry, tourism, health, infrastructure, and trading, reflecting a comprehensive approach to economic development.

On the import front, China and India stand out as key partners, contributing to an import value of approximately USD 18 billion. Import products include machinery, transport equipment, petroleum products, and chemical goods, showcasing Kenya’s integration into the global supply chain.

Kenya’s abundant natural resources, highlighted by its unique flora and fauna, position tourism as a cornerstone of foreign direct investment and exchange. Wildlife sanctuaries and national parks serve as focal points, attracting global visitors and bolstering the country’s economic resilience.

The economic landscape thrives on small-scale industries, primarily involved in the production of consumer goods like plastics, soaps, and clothing. These industries not only make substantial contributions to the economy but also serve as the backbone of employment for a significant portion of the population, ensuring a steady income stream. The transportation system, already robust, undergoes continuous development, aligning with Kenya’s commitment to progress.

Simultaneously, Kenya’s economic evolution places emphasis 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.

Cost of Living

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

Cost of Renting

Understanding 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, highlights 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%

Hiring Cost

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:

• Onboarding expenses
• Instruction
• The expenses related to scheduling interviews, carrying out the screening procedure, and finishing the hiring opportunity

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

Employment Laws in Kenya

The Regulation of Pay and Conditions of Employment Act (Cap. 229) and the Employment Act (Cap. 226) establish regulations about wages, leave and rest, health and safety, the special status of women and children, and termination of employment.

• The Employment Act normally does not guarantee wages. Another legislation that establishes rates and minimum wages is the Regulation of Earnings and Conditions of Employment Act.
• The legal framework now includes laws promoting gender equality as well as more accommodating workplace regulations.

Kenya Remote Hiring Trends 2023

The hiring landscape in Kenya has undergone a significant transformation, especially in remote and technology-related roles, experiencing an impressive 800% surge. This upswing has resulted in the formation of a strong pool of skilled workers across various industries, positioning Kenya as a thriving hub for talent acquisition.

As key cities, particularly Nairobi, strengthen and evolve their economies, the skills and competencies of potential candidates continue to advance. For businesses looking to tap into this dynamic talent pool, Kenya emerges as a prime destination.

In 2023, several leading companies are at the forefront of hiring across diverse sectors. Safaricom, renowned for its expertise 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 not only recognized for their business acumen but also for their commitment to fair employee treatment, particularly in adapting to the shift toward remote work positions. This employee-centric approach solidifies their status as some of the best employers in Kenya in 2023, marking a crucial hiring trend focused on enhancing the overall employee experience.

The demand for specific skills and job titles mirrors 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 experiencing a surge in job opportunities, indicating a multifaceted demand for skills across diverse sectors.

With these prevailing trends, businesses can strategically formulate 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.

How Can EOR Services Help You With Hiring in Kenya?

Hiring is a complicated procedure in Kenya that requires a thorough awareness of the country’s laws, customs, hiring costs, living prices in different areas, and other aspects. As a one-stop shop that can manage all aspects of hiring, EOR Services joins the team. It frees you from the hassle of hiring and gives you more time and flexibility to focus on your project and expansion plans. Contact EOR Services Experts to find out more.