What Is the Average Income in Kenya?

Average income indicates a nation’s economic well-being, reflecting the typical financial standing and economic output distribution. For Kenya, understanding average income offers insights into living standards and the broader economic landscape. This article explores how income is measured, current statistics, and the factors shaping these figures.

Understanding Income Measures

When discussing “average income,” several distinct economic measures offer different perspectives. Gross Domestic Product (GDP) per capita measures a country’s total economic output divided by its population, representing average economic production per person. This metric reflects an economy’s overall size and health, but it does not account for income earned by residents from overseas.

Gross National Income (GNI) per capita includes all income earned by a country’s residents and businesses, regardless of where the income is generated, divided by the mid-year population. GNI per capita adds income from abroad and subtracts income paid to non-residents, providing a broader picture of income available to citizens. Both GDP and GNI per capita are valuable for international comparisons and country classification.

Beyond national aggregates, mean and median income provide insights into individual or household earnings. Mean income is the total income of a group divided by the number of individuals or households. However, mean income can be skewed by extremely high earners, making it less representative in economies with significant income disparities. Median income, the midpoint of all incomes, offers a more accurate representation of typical income, as half the population earns above this figure and half earns below it. Understanding household income (total income of all individuals residing in a household) versus individual income (income of a single person) further refines earning patterns.

Current Income Statistics in Kenya

Kenya, classified as a lower-middle-income economy, exhibits varying income statistics. The Gross Domestic Product (GDP) per capita in Kenya was estimated at $2,187 in 2024, projected to increase to $2,468 in nominal terms by 2025. When adjusted for purchasing power parity (PPP), Kenya’s GDP per capita is projected to be $7,534 in 2025.

For Gross National Income (GNI) per capita, Kenya’s figure was reported at $2,110 in 2024 using the Atlas method. In terms of purchasing power parity (PPP), Kenya’s GNI per capita was $6,520 in 2024. These figures highlight Kenya’s position within the global economic landscape.

Regarding individual and household earnings, average monthly salaries for most Kenyans ranged from $590 to $640 in recent data, indicating an approximate annual individual earning between $7,080 and $7,680. Average annual earnings across the economy increased from 894,200 Kenyan Shillings in 2023 to 933,100 Kenyan Shillings in 2024. For entry-level positions, formal sector employees earned between KES 10,001 and KES 50,000 (approximately $100-$500) per month in 2020, while those in the informal sector earned KES 5,001 to KES 25,000 (approximately $50-$250) monthly.

Key Determinants of Income Levels

Income levels in Kenya are shaped by economic, social, and geographical factors. The economy is predominantly driven by the services sector, which contributed 55.3% to GDP in 2024, followed by agriculture at 22.5% and industry at 16.5%. Agriculture, despite its significant GDP contribution, employs 42.3% of the labor force, often with lower income potential. The informal economy accounts for approximately 83% of total employment in 2021, providing livelihoods with often lower and less stable earnings.

Education and skills correlate with earning potential. Higher educational attainment generally leads to increased earnings and improved employment prospects. For instance, informal sector workers with a high school education earn about 50% more than those with only primary education, and college graduates earn around 80% more than high school graduates. University education offers the highest returns, boosting income significantly.

Geographic location also influences income, with disparity between urban and rural areas. Urban centers, particularly Nairobi, offer higher wages and more diverse employment opportunities. Rural areas, where many rely on agriculture, tend to have lower average incomes and higher poverty rates. The mean monthly wage from paid employment in urban areas is more than double that in rural areas.

Employment type, formal or informal, dictates income levels and stability. Formal employment provides higher pay, job security, and benefits, adhering to labor laws. The informal sector, while a major source of employment, has lower wages, less job security, and limited social protections. Demographic factors like gender also influence income, with women in the informal sector often facing challenges like limited capital and higher business failure rates, and men generally earning higher incomes.

Income Distribution and Disparity

Beyond average figures, income distribution reveals significant disparities within Kenya. Income inequality is measured by the Gini coefficient (0 for perfect equality, 100 for perfect inequality). Kenya’s Gini index was 36.2% in 2020 and 38.7% in 2021 (World Bank), indicating increased inequality. Other sources report a wealth inequality Gini coefficient of 28% in 2022 (Kenya Demographic and Health Survey) and a consumption expenditure Gini index of 38.9% in 2021 (Kenya Continuous and Household Survey).

These figures show a small segment of the population holds a disproportionately large share of national income. The top 10% of households control 42% of total income, while the bottom 10% control less than 1%. The richest 20% of the rural population earn 62% of incomes, and the urban richest 20% earn 51%. Conversely, the poorest 20% in rural areas earn only 3.5% of income, while their urban counterparts earn 5.4%.

The rural-urban divide is a prominent feature of income distribution. While wealth inequality might appear higher in rural areas, consumption expenditure inequality is often greater in urban areas. Historically, rural poverty has been more pervasive. Regional disparities also exist, with areas like Nairobi, Rift Valley, and the Coastal region exhibiting wider income inequalities. These patterns highlight the complex nature of income disparity, which is influenced by economic opportunities, access to resources, and historical factors across different regions.