Private Sector Workers Miss Out on Pay Increases in May as Employment Drops - PMI Report

In May 2026, 99% of Kenyan private firms did not raise wages, according to the Stanbic Bank Kenya PMI, despite rising cost of living. The Ministry of Labour had approved a 12% general wage increase in May. Private sector employment dropped for the first time in 16 months, with the PMI falling to 46.6, indicating contraction. New orders fell at the fastest pace since July 2025 due to reduced consumer spending.