Kenya's Digital Sector Grapples with Low Wages and Lax Standards

Jordan Vega

Jordan Vega

January 22, 2025 · 3 min read
Kenya's Digital Sector Grapples with Low Wages and Lax Standards

Kenya's tech sector is facing a significant challenge as professionals in the field earn substantially less than their counterparts in more developed digital labor systems. Despite the government's intention to increase digital job outsourcing, working standards for these employees have not been established, leading to a struggle for fair wages.

The disparity in wages is stark, with Kenyans working for multinational corporations in digital sectors earning up to five times less than their peers in nations with more developed digital labor systems. This trend persists even as the government aims to promote digital job outsourcing, highlighting the need for better working standards and regulations.

The rising cost of living in Kenya has driven many Gen Zs to seek jobs online, leading to intense competition and downward pressure on wages. According to the National Study on Digital and Digitally Enabled Work in Kenya, published by the Kenya Private Sector Alliance (KEPSA) in 2021, roughly 1.2 million Kenyans earn a living online, receiving an average of Sh20,773. However, this amount is still insufficient, with many struggling to make ends meet.

Siasa Place CEO Nerima Wako emphasized the issue, stating that Kenyan workers receive a fraction of the salaries earned by their American counterparts, despite performing similar work. Wako noted that even when considering the amount of money Kenyan workers bring to their families, they still struggle to reach a middle-class bracket.

The lack of collaboration and partnership with organizations that have analyzed the outsourcing industry is also hindering Kenya's progress. Wako highlighted this point during the Friedrich Naumann Foundation for Freedom's release of its policy paper on steps Kenya can take to make its business procedures for the outsourcing industry globally competitive.

The implications of this trend are far-reaching, with potential long-term consequences for Kenya's digital sector. As the government continues to promote digital job outsourcing, it is essential to establish working standards and regulations that protect the rights of workers and ensure fair wages. Failure to do so may lead to a brain drain, as talented professionals seek better opportunities elsewhere.

In conclusion, Kenya's digital sector is at a crossroads, with low wages and lax standards threatening to undermine its growth. To unlock the full potential of its digital workforce, Kenya must address these challenges and establish a more equitable and sustainable system for digital job outsourcing.

Similiar Posts

Copyright © 2024 Starfolk. All rights reserved.