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TODAY:  Thu, Dec 24, 2009   2:26am EAT

Gap between poor and rich widens

Written By:Lawrence Njenga   , Posted: Fri, Nov 06, 2009

The gap between the poor and the rich in the country has increased by 100 percent to 400% from 300% recorded in the year 2007.

This is according to a National Human resource survey conducted by PriceWaterCoopers.

It also reports that pay increase for the chief executives had been on an upward trend compared to that of other employees.

The survey also found out that pay increase in companies stand at 10.6% where by 30% is that of the chief executive officers in the various companies.

With an inflation standing at 26.6% in October, 61% of companies were affected by slowed growth thereby forcing 30% of them to retrench.

The country's growth also dropped from an optimistic 7.1 % to a low of 1.7% in 2008.

This the survey attributes to the 2007 post poll violence, rampant drought, reduced disposable income and power failure.

Due to the global economic crises, the numbers of Kenyans in Diaspora coming back also increased but only 30% of them secured jobs in the country.

The experts now project the salaries increases to rise to 10% to close up the gap, and a continued streaming back of Kenyans living abroad.

In 2008 the United Nations Development Programme ranked Kenya 144th out of 177 countries in its Poverty Ranking exercise





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