Nairobi Employers Report Improved Labour Productivity

Kenya’s Real Estate Sector Leads Service-Industry Productivity, New Report Finds
Nairobi — According to the latest Kenya Institute for Public Policy Research and Analysis (KIPPRA) study, the real estate sub-sector has emerged as the top performer in labour productivity across Kenya’s services sector in 2023. Despite employing a relatively small workforce — just 3,146 people in 2023 — real estate consistently outperformed larger sub-sectors like wholesale and retail, transport and storage, ICT, and professional services.
The report attributes this strong productivity to the specialised and skilled nature of real estate work. Nearly 43 percent of individuals in the sector hold higher-education qualifications, giving real estate a substantial advantage in output per worker.
Moreover, real estate recorded a growth rate of 7.3% in 2023, closely aligning with the overall services-sector growth rate of 7.0% — and markedly outpacing the 2.7% growth seen in wholesale and retail.
Economists and industry observers say the findings reflect the changing nature of Kenya’s urban economy. As demand for property rental, urban housing, and commercial space rises — driven by rapid urbanization, population growth and shifting lifestyle preferences — the real estate sector’s efficiency and returns per worker stand out. This trend shines a spotlight on real estate not just as an asset class, but as a major engine of productivity and economic growth.
Looking ahead, the data suggest real estate could play an increasingly significant role in Kenya’s broader development ambitions — especially under frameworks like Kenya Vision 2030, which emphasize structural transformation and urban infrastructure. If this momentum continues, real estate may help drive more stable employment, improved property markets, and greater overall economic output for Kenya’s cities and beyond.