- To boost productivity and economic recovery from Covid-19, Kenyan private firms gave the highest pay rise to workers in June in 21 months.
- According to Stanbic Bank Kenya’s Purchasing Managers Index (PMI) that measures monthly changes in private sector activity output, new orders and employment said that last month’s pay growth was the highest since October 2019.
To boost productivity and economic recovery from Covid-19, Kenyan private firms gave the highest pay rise to workers in June in 21 months. According to Stanbic Bank Kenya’s Purchasing Managers Index (PMI) that measures monthly changes in private sector activity output, new orders and employment said that last month’s pay growth was the highest since October 2019. Though the pace of growth was very marginal, it quickened slightly since October 2019. The period from July-September ushered in layoffs and pay cuts as firms grappled with dipping sales. Analysts pointed out that the Salary increases were mainly linked to efforts to boost productivity.
Corporate leaders, who were under severe stress due to the Pandemic had opted for salary cuts rather than layoffs in anticipation of an improvement in demand in the coming months. In June, firms also slowed down the pace of hiring compared with May and instead focused more on efficiency in the production of goods and services.
Eighteen percent of the 400 corporate managers covered in a survey from agriculture, manufacturing, construction and services reported an increase in demand, while 16 percent posted reduced orders as a result of poor purchasing capacity of the customers. The business outlook, in the next 12 months worsened in June in view of fresh restrictions to contain the spread of the pandemic.
