Construction Boom Fails to Lift Kenyan Workers’ Wages Significantly
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Kenya’s construction sector is expanding rapidly, but workers are not feeling the benefits. Wage growth is slowing even as building activity and investment surge across the country.
Kenya’s construction sector has continued its post-pandemic expansion, driven by infrastructure projects, housing developments, and improved access to credit. Despite this momentum, new data shows that wage growth for construction workers has slowed, even as overall activity in the sector increases.
The latest Economic Survey indicates that while average pay has risen over the past five years, recent increases are modest and failing to match the sector’s rapid growth. Unskilled and semi-skilled workers have seen only small gains, highlighting a widening gap between output growth and household earnings.
Analysts say the trend reflects a labour surplus and increasing mechanisation in construction, where productivity gains are not translating into higher wages for lower-skilled workers. This disconnect raises concerns about how much of the sector’s boom is being distributed to workers on the ground.
Further growth in construction is expected, but without stronger wage transmission mechanisms, the benefits may remain concentrated among developers, contractors, and capital-intensive segments of the industry.