That the number of formal sector employees earning more than Sh100,000 a month is growing sends a positive signal that the economy can create and sustain high-quality jobs.
This is important considering shifts in the shape of formal employment that are increasingly influenced by technology as well as high-level skills and competencies. But commendable as this is as an indicator of social and economic progress, it also raises important questions about income inequality.
Last year, the number of workers earning more than Sh100,000 jumped 15 per cent or 48,000 more to 358,83 — representing 12.37 per cent of the total workforce
This calls for the need to bridge the gaps between the rank-and-file workers and the super earners in the race to boost economic inclusion, both across job groups as well as gender where pay disparities persist.
Some 1.18 million workers or 40 per cent are paid below Sh50,000 a month and at least 51,770 are earning below the national average of Sh20,123, underlining the problem of pay inequality.
The inequality has partly been attributed to the previous centralised system of government, which guided sharing of resources since independence.
The devolved system of government, which took off in 2013, raised hopes of addressing the economic imbalance, as analysts say there is a need to offer incentives to attract private investors to counties and spread the wealth.
There is a particular need for policymakers to focus on agriculture and agro-based industries, which appear to be the worst performing among all the sectors evaluated for the latest Kenya National Bureau of Statistics data.
Agriculture, despite being the largest employer, still lags behind when it comes to the size of remuneration.
It will also be important to increase synergy and linkages between the agriculture, manufacturing and technology sectors if the fortunes of workers are to be increased.
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