Workers in the real estate sector have reported the highest increase in income, even as most Kenyans experience stagnation or pay cuts in a struggling economy, according to a new survey.
The ILAM Consumer Spending Index for the last quarter of 2024 indicates that the real estate sector, which includes building and construction, had the highest proportion of individuals who saw income growth at 22 percent. This was followed by manufacturing and trade at 14 percent and wholesale and retail at 13 percent.
However, the findings by ICEA LION Asset Management show that wholesale and retail had the highest share of workers (33%) reporting a decline in income. The hotel, tourism, and leisure sector recorded the most cases of stagnant earnings, with 66% of workers stating their pay remained unchanged.
Analysts attributed the rise in real estate earnings to ongoing construction projects, including high-end shopping malls, industrial warehouses, residential apartments, and student housing, many of which are backed by foreign investors. ICEA LION Asset Management Head of Research, Judd Murigi, also linked the trend to the government’s affordable housing initiative.
“Affordable housing projects may have led to increased demand for construction workers,” Murigi noted.
The survey also found that among those whose incomes improved, 29% had changed jobs, 28% secured side hustles, and 24% received salary increments.
With higher earnings, spending among real estate workers also surged, with 86% of respondents in the sector reporting increased expenditure. In contrast, 25% of workers in manufacturing and trade reported a decline in spending.
The study, which surveyed 233 retail businesses and 1,210 individuals, further revealed that house fittings and accessories businesses suffered the most, with 58% of respondents reporting reduced sales during the period.
