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CGD in the News

Kenya Pays Factory Workers Twice As Rival Bangladesh (Business Daily)

October 17, 2017

From the article:

Workers in Kenyan factories earn more than twice the average wages that industries in Ethiopia and Bangladesh pay their labourers even as global brands favour low pay countries, a new study shows.

US-based Centre for Global Development puts the annual pay per worker in Kenyan industries at $2,118 (Sh218,154), equivalent to Sh18,179 per month.

Workers in Ethiopia’s sweatshops earn an average $909 (Sh93, 627), or Sh7,802 per month while the wage in Bangladesh, famous for its vibrant garments industry, is a paltry $835 (Sh86,005) yearly.

Tanzania factories pay an average $1,776 (Sh182,928) a year, or Sh15,244 monthly, the study shows.

“Yet taking the broader global picture their (Kenya) manufacturing labour appears costly relative to that of Bangladesh, a country with comparable income level and competitiveness rating,” the report says.

Read full article here.

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