Real wages grow for first time in 6 years

 Kenya Union of Post Primary Education Teachers officials march past Presidential dais during this year's Labour Day Celebrations at Uhuru Gardens Nairobi on May 1, 2025.

Photo credit: Dennis Onsongo | Nation Media Group

Salary rises in 2025 surpassed inflation or cost of living measure for the first time in six years despite employers having offered workers a smaller pay increase.

Inflation-adjusted earnings or real wages — a barometer for measuring employees’ purchasing power— grew by 2.0 percent last year, marking the first time since 2020 that growth in workers’ earnings has surpassed the increase in consumer prices, says the Kenya National Bureau of Statistics (KNBS).

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