Kenya Real Estate Workers See 22% Income Growth as Other Sectors Decline

The ILAM Consumer Spending Index for the last quarter of 2024 indicates a notable income boost for employees in the real estate sector, even as the economy grapples with stagnation and falling incomes across various industries.

According to research conducted by ICEA LION Asset Management, 22 percent of workers in the real estate field saw their earnings increase, a stark contrast to the lower percentages noted in manufacturing and trade at 14 percent, and wholesale and retail at 13 percent. The report attributes the resilience of the real estate sector to sustained construction activities and increased foreign investment.

Judd Murigi, Head of Research at ICEA LION Asset Management, points to a surge in construction projects, ranging from high-end shopping malls and industrial warehouses to residential apartments and student housing developments, as key factors driving this income growth. Moreover, the ongoing affordable housing initiatives have created a heightened demand for construction workers, which further contributes to the sector's income resilience.

The study, which gathered feedback from 233 retail businesses and 1,210 individuals, reveals a disparate landscape for workers across different sectors. For instance, the wholesale and retail segment recorded the highest proportion of individuals reporting income declines at 33 percent, while the hotel, tourism, and leisure industries reported stagnant incomes for 66 percent of their workers. As incomes rise in the real estate sector, the data suggests a corresponding increase in consumer spending.

Approximately 86 percent of workers in this sector reported heightened expenditure, contrasting with the 25 percent of individuals in manufacturing and trade who noted reduced spending levels. Additionally, the research highlights adaptive strategies employed by workers facing economic pressures: among those who experienced income increases, 29 percent changed jobs, 28 percent engaged in side hustles, and 24 percent received pay raises.

The retail sector, which includes clothing, house fittings, and leisure outlets, has encountered its own difficulties, particularly in house fittings and accessories, where 58 percent of businesses reported decreased sales during the surveyed period.