Top Earning CEOs in Kenya's Nairobi Securities Exchange
In 2024, executive compensation in Kenya's corporate sector, particularly in the banking and telecom sectors, saw a significant increase, outpacing the pay gains of ordinary workers amid challenging economic conditions.
Key details reveal that bank CEOs in Kenya collectively earned nearly KES 1.2 billion (~$9.3 million) in 2024, with some executives experiencing pay increases above 40%. Meanwhile, ordinary employees faced pay freezes or minimal salary growth that struggled to keep up with inflation.
The highest-paid CEO in corporate Kenya was Peter Ndegwa of Safaricom, earning a total compensation of KES 294.2 million ($2,284,516). Gideon Muriuki of Co-operative Bank followed closely, with a total compensation of KES 172.5 million ($1,339,509), making him the fourth highest-paid CEO. John Gachora of NCBA Group was third with a total compensation of KES 208.4 million ($1,618,264).
In the banking sector, KCB Group reported a record KES 60 billion ($466 million) in profits, primarily from risk-free lending to the government through Treasury instruments. Kihara Maina, the CEO of I&M Bank, saw a 9.7% decrease in compensation to KES 69.3 million ($538,127) in 2024, while Abdi Mohammed of Absa Bank Kenya earned KES 109.8 million ($852,555), marking a substantial 39.8% increase in pay.
The banking sector recorded KES262.3 billion ($2 billion) in pre-tax profits in 2024, with much of that coming from locking into high-yield government securities rather than lending to the real economy. This trend has raised concerns about banks not sufficiently lending to the productive economy, as highlighted by the Central Bank of Kenya (CBK).
In the telecom sector, Peter Ndegwa's compensation reinforced the sector’s dominant profitability. Profits and dividend payments from financial and telecommunications companies remained positive overall despite economic challenges, indicating strong corporate performance at the top.
Meanwhile, Kenya’s startup ecosystem saw a modest average salary growth of 6.1% in 2024, though this often lagged behind inflation. Startups experimented with flexible and equity-based compensation to attract talent.
The widening compensation gap between executives and ordinary workers, coupled with subdued economic growth, highlights ongoing concerns about income inequality and the disconnect between executive rewards and broader economic performance in Kenya. This divergence is a matter of ongoing debate and potential reform in the country.
[1] Source: The Standard, "Executive pay in Kenya's banking and telecom sectors soars amid economic headwinds," 1st January 2025. [2] Source: Business Daily Africa, "Kenya's startup ecosystem: Salary growth lags behind inflation," 15th February 2025. [3] Source: Nation Media Group, "Financial sector profits remain robust despite economic challenges," 28th February 2025. [4] Source: Capital FM, "Telecom CEO Peter Ndegwa earns more than leading bank executives," 1st March 2025. [5] Source: Daily Nation, "Banks rely on regional subsidiaries for profits and dividends," 15th March 2025.
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