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What is a "good salary" in Kenya?
UpcomingPaperChaser
#181 Posted : Thursday, January 14, 2016 7:37:18 PM
Rank: Member

Joined: 1/20/2015
Posts: 489
Location: Nairobi
Sevian wrote:
250k net is a lot of money. In GoK, hiyo ni job group Q and above: Assistant Director and above; while in the bank huyo ni manager wa branch ndogo kiasi. Those are positions achieved after 10 yrs of work. Tell me which of those categories of people live in Eastlands in a rental house? People are living like kings/queens on 150k with their families, taking 2 kids to Rose of Sharon, investing in plots, supporting their extended families and villages, etc. Wacheni vitisho
After all, approx 7% Kenyans earn above 100k and 1% above 500k. That's 2.8m and 0.5m people respectively. Take that and distribute across the whole country (Nrb, Msa and their diasporas taking the lion's share). We wouldn't have as many social joints, supermarkets with queues, vehicles on roads; if you needed so much money to get by comfortably
These figures are theoretical. In


Nothing of the sort!!!! Branch managers of banks like Equity earn a gross of 250 and not net.....and thats those in big towns like Nairobi. However, branch managers rise annually after they meet their targets and are awarded extremely huge bonuses....at times to the tune of 5 million!!
Enjoy every moment of your life, you never know when your time will come.
hardwood
#182 Posted : Thursday, January 14, 2016 7:50:39 PM
Rank: Elder

Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
WalterWhite wrote:
Sevian wrote:
250k net is a lot of money. In GoK, hiyo ni job group Q and above: Assistant Director and above; while in the bank huyo ni manager wa branch ndogo kiasi. Those are positions achieved after 10 yrs of work. Tell me which of those categories of people live in Eastlands in a rental house? People are living like kings/queens on 150k with their families, taking 2 kids to Rose of Sharon, investing in plots, supporting their extended families and villages, etc. Wacheni vitisho
After all, approx 7% Kenyans earn above 100k and 1% above 500k. That's 2.8m and 0.5m people respectively. Take that and distribute across the whole country (Nrb, Msa and their diasporas taking the lion's share). We wouldn't have as many social joints, supermarkets with queues, vehicles on roads; if you needed so much money to get by comfortably
These figures are theoretical. In


Exactly my friend! The salary figures certainly don't tally with the lifestyles we see in Kenya. Why? The numbers don't lie. If 250 k is alot of money, will be waiting to see your budget for a family of 4. Unless the middle class is living high on the hog on debts. Now that would be interesting!

That aside, we need LIFESTYLE AUDITS especially govt employees to capture the effect of corruption in the form of bribery and kickbacks. It's the same way unaskia secretary earning 15k per month has a house in Kile, a car, weave ya 30k kwa kichwa, designer bags and shoes, vacations to Dubai... You're left scratching your head as to how she's able to live that high life. What you don't know is the number of sponsors available to finance her lifestlye. Vile vile...with most so called middle class employees. You wonder how the ka miserable 70 k salary is paying for amenities that based on the budgets drawn up here is simply impossible. Of course, not considering Kanyari's multiplier effect, jk. Numbers don't lie!! When you hear billions upon billions being squandered and looted, that money has a real effect on the ground.


One can be a junior clerk at the lands office earning a net of 30k, but everyday he "assists" 20 people with 'land searches' @ 1k, that's 20k per day or 400k every month 920 working days). Thus his total net income is 430k, and he can afford the upper middle class lifestyle mentioned above, or own several flats huko rongai. Remember some junior cops who sued the IG after they were transferred from Mariakani weighbridge?

http://www.businessdaily...-/11hy2x2z/-/index.html
Mukiri
#183 Posted : Thursday, January 14, 2016 7:57:16 PM
Rank: Elder

Joined: 7/11/2012
Posts: 5,222
Houses are being sold 10M and above in Nairobi's 'suburbs' the Rongais, Ngongs, Juja, Thika, Kitengela, Isinya et al and apparently real estate is now where the money is. Who are buying these houses and where are they getting the money from?

Proverbs 19:21
Jon Jones
#184 Posted : Thursday, January 14, 2016 8:04:51 PM
Rank: Member

Joined: 9/11/2015
Posts: 245
Location: Thika
Mukiri wrote:
Houses are being sold 10M and above in Nairobi's 'suburbs' the Rongais, Ngongs, Juja, Thika, Kitengela, Isinya et al and apparently real estate is now where the money is. Who are buying these houses and where are they getting the money from?

Middle class...banks...Kenyan version of the "American dream".
Since men have learned to shoot without missing, I have learned to fly without perching
hardwood
#185 Posted : Thursday, January 14, 2016 8:08:18 PM
Rank: Elder

Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
Mukiri wrote:
Houses are being sold 10M and above in Nairobi's 'suburbs' the Rongais, Ngongs, Juja, Thika, Kitengela, Isinya et al and apparently real estate is now where the money is. Who are buying these houses and where are they getting the money from?


Interesting question since as you have seen on the budgets above a middle level manager earning 250k net is living hand to mouth and thus can never afford a mortgage. Also interesting that reports say most houses are bought cash.
Rollout
#186 Posted : Thursday, January 14, 2016 8:50:31 PM
Rank: Member

Joined: 4/26/2011
Posts: 759
Sublimity wrote:
Long time lurker, but first time poster. This is the best Kenyan forum have ever seen.

I have been in ‘majuu’ for around ten years, so I guess that qualifies me to add some 2 cents for perspective and balance. First, grew up in the village, went to Kenyan public uni for commerce degree, lived in Kibera/Mukuru, got a kajob, saved till had a million and left on a student visa. My first salary was 35k, and used to save about 20k. Used to teach part time. I was so broke when I left Kenya – money spent on fees/student visa but luckily had some one to host me.

I was clear on why I left – I didn’t see much opportunity (I think there are many young Kenyans who have a B. Comm and CPA and can’t get a job.), no capital, and just had this big dream that I will be successful. I hated poverty – and having gone through hardship growing up.

Ten years down the line, it is the best decision I have ever taken, completed studies, now citizen, went back to Kenya to get a wife. My wife and I live what a typical western middle class family lives, we have a house (on mortgage), earnings within highest 5% - 10% of the population, work 8 – 5 jobs and now started to think about where to retire.

Has it been easy? Hell no. Did the odd jobs – some times working 20 hours. Cried a few times – you do not adjust from an office job to selling cigarettes in a convenience store overnight or working as a cleaner. It has been a process of rediscovering, retraining (had to study again for an MBA, accounting qualification and CFA), and started from the bottom (Drakes song, started from the bottom has been the story of my life). It has been years of building networks – and having been a hustler all my life, this has helped. I work in middle management of a global corporation (not junior, and not too senior).

I have never joined this bandwagon that I am going back to Kenya (or for that matter, you must come to majuu to be successful). If you are lazy in Kenya, you are not going to just become an amazing hard worker by living in a different country. If you live an average life abroad, just doing the rat race, you are not going to become an amazing business man in Kenya. That perspective is important. I have seen people sell houses and go to Kenya – only to come back again. I have also seen people execute good plans and go back successful – but very few.

So people need to be careful, I think Kenya is a very competitive place to do business (if it was that easy – so many Kenyans would do it). If you are comfortable in Kenya, stay there. If you have a clear plan on what you want to achieve abroad – then leave, but understand it will take years. I have hosted and mentored a few Kenyans, ironically, many from parts of Nairobi we would never have crossed paths if I was in Kenya (have only ever been to Muthaiga to visit parents of a student I hosted, many years after have been here).




Good story!
Lolest!
#187 Posted : Thursday, January 14, 2016 9:35:15 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
Mukiri wrote:
Houses are being sold 10M and above in Nairobi's 'suburbs' the Rongais, Ngongs, Juja, Thika, Kitengela, Isinya et al and apparently real estate is now where the money is. Who are buying these houses and where are they getting the money from?

ufisadi. I hear the main method is to make the guys bribing a public official pay directly to the land seller
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
WalterWhite
#188 Posted : Thursday, January 14, 2016 10:37:18 PM
Rank: New-farer

Joined: 1/3/2016
Posts: 29
hardwood wrote:


One can be a junior clerk at the lands office earning a net of 30k, but everyday he "assists" 20 people with 'land searches' @ 1k, that's 20k per day or 400k every month 920 working days). Thus his total net income is 430k, and he can afford the upper middle class lifestyle mentioned above, or own several flats huko rongai. Remember some junior cops who sued the IG after they were transferred from Mariakani weighbridge?



@Sublimity, great post! Thanks for sharing.

@Mukiri, exactly! How are people able to pay in cash yet their incomes suggest that a 10 million Kshs house should take a lifetime of work and saving religiously. Yet said people are buying multiple properties without breaking a sweat. Where is the money coming from?? If you recall that corrupt police boss who was being questioned why/how he has never touched his salary in years. The guy said ati his businesses are doing marvellous. Well, why not quit the low paying police job to focus solely on such a profitable venture?? He was left speechless. This culture of corruption in Kenya will bring the country to its knees. How can the middle class with legitimate livelihoods compete with people making cash from thin air? If you ever visit your sub county, just go to land board office and see how those people are eating. It's outrageous. People who barely went to school. You heard CJ Willy Mutunga saying that Kenya is under the mercy of cartels who are untouchable. Even the President is under siege from within.

Which begs the question. What exactly are we teaching the upcoming generation? Corruption kills ambition! Every single year, about 1 million kids sit for KCPE. What sort of future awaits them given that there are very few jobs available? Nowadays the trend is agribusiness for unemployed youth. It's all good, but I think we're sending the wrong message here because not everyone can do chicken farming, mara ni tomato farming or watermelons, onions etc etc. First of all, the cost of land is out of reach for many and getting worse. We simply don't have industries that can absorb the hordes of hungry Kenyan youth who are slated to join the employable workforce.

If a whole branch manager, a graduate, has to scrimp and save to afford a very small piece of land, in this era of skyrocketing land prices, what of the bank teller? It's only going to get worse.

I think everyone should work juu chini anunue shamba. Do whatever it takes, even if it means leaving the country to make some quick cash, then coming back. Rents are only going to go up because of population growth. For ex. Roysambu rent has doubled juzi tu from 15k ish now it's 25-40 k for a 3bdr flat.
Xymalos
#189 Posted : Thursday, January 14, 2016 11:17:55 PM
Rank: New-farer

Joined: 2/14/2015
Posts: 98
Location: Kenya
WalterWhite wrote:
Breakdown for upper middle class Kenyan family, in their 30s with 2 kids.

1.Rent and utilities (water, electricity etc) -100K = ($1000)

2. Food & House items, including house parties, birthdays, special occasions - 40-50K ($400 - $500)

3. School fees, transport, lunches, school supplies- 80K ($800) (40 K per child)
(You appreciate the importance of a rigorous, well rounded education not one based on cramming for exams. This category goes up even more so 80K is a huge understatement).

4. House help- 8-10K ($80 -$100)

5.Entertainment - 50K ($500). Averages to 5K each Sat/Sun per month.
(Ex. Fish + Chips + drink at a nice restaurant is about 1K per person)

6. Transport, including fuel, car repairs/maintenance,insurance, car loan for 2 family cars- 50K ($500)

7. Clothing for four- 10K ($100)

8. Wazazi - 15K ($150)

9. Airtime, DSTV, gadgets - 10K ($100)

10. Savings- 100 K ($100) (To get you closer to the dream of home ownership)

11. Community contributions (weddings, funerals, medical)- 10K ($100)

12. Health care- kids get sick alot + medicines- 5K ($50)

13. Charity & Miscellaneous-10-20K ($100-200)

Total: 500,000 NET monthly income

Those who are servicing loans, add another 100K maybe more.

It becomes very clear how important it is to have a working wife also contributing to the family budget.
This budget is for people who want to LIVE WELL.

Now those who thought my previous estimate of 1 million per month was too extravagant...At a savings rate of 100K per month, per year that's 1.2 million Kshs. It will take 3-4 years to buy a miserable 1/8th in Kamulu or Ruai. Laughing out loudly Laughing out loudly

The choice is clear: you can't LIVE WELL and at the same time save substantially with anything less than say, 700K ($7000)per month in Kenya.



Maybe Wazuans living in diaspora understand better when expressed in $$s. These expenses reflect a lifestyle and income many in diaspora cannot afford. What proportion of Diaspora's earn a net of $84,000 per year ($7000 x 12)?
Mike Ock
#190 Posted : Thursday, January 14, 2016 11:45:41 PM
Rank: Member

Joined: 1/22/2015
Posts: 682
Mukiri wrote:
Houses are being sold 10M and above in Nairobi's 'suburbs' the Rongais, Ngongs, Juja, Thika, Kitengela, Isinya et al and apparently real estate is now where the money is. Who are buying these houses and where are they getting the money from?

The upscale houses are mostly being sold to wakoras to launder their cash. Politicians, tenderpreneurs, drug dealers, con men, arms dealers, human traffickers, pirates, wanakuanga wengi. As for mshaharas that can afford such, mostly business owners, C-Level guys and guys working for multinationals. Also note that government and bank workers are given fair mortgage rates of less than 10%, so they also qualify to be buying these houses we see around.
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