Pundit, Labour Costs Killing Kenya Industry

[Omollo]

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What can be done about this?

An Ethiopian would work for half the wages paid to a Kenyan of similar qualifications with better workmanship.

[RV Pundit]

I doubt the better workmanship part. Kenyans are generally 3 times more productive than countries like ethiopia or uganda or tazania. I don't know enough of Ethiopia labour market though...

I'd say the main impediment is that 99% of kenyan workers are thieves...corrupt to the bone.

[Omollo]

The thieving part is a result of the entire country accepting wizi as a legitimate way of making it in life. The labourers are at the bottom of the food chain and follow the examples set by those above. I have sat at places where these type of people are exchanging stories and listened as they glorified people who had even murdered to get rich.

Generally, Kenyan Fundis have just about sufficient skills to complete a task. But they lack the extra finesse to make it shine. You live in Nairobi close to Arusha. Next time you are building get some Ethiopians or Tanzanians and see how much you will save and just how beautiful the job would be.

Ugandans are as "good" as Kenyans.

I doubt the better workmanship part. Kenyans are generally 3 times more productive than countries like ethiopia or uganda or tazania. I don't know enough of Ethiopia labour market though...

I'd say the main impediment is that 99% of kenyan workers are thieves...corrupt to the bone.

[RV Pundit]

My own anecdotal evidence..kenyans outside coast[you are coastarian and might be used to lazy coastal folks) are very hardworking and generally more educated than most of sub-saharan peers..but they love to cut corners and steal. Work ethic of kenyans is very good. Tazania might deliver but in how many years? By then a Kenyan fundi would have delivered 3 more buildings.

The thieving part is a result of the entire country accepting wizi as a legitimate way of making it in life. The labourers are at the bottom of the food chain and follow the examples set by those above. I have sat at places where these type of people are exchanging stories and listened as they glorified people who had even murdered to get rich.

Generally, Kenyan Fundis have just about sufficient skills to complete a task. But they lack the extra finesse to make it shine. You live in Nairobi close to Arusha. Next time you are building get some Ethiopians or Tanzanians and see how much you will save and just how beautiful the job would be.

Ugandans are as "good" as Kenyans.

[Omollo]

How about the average labour cost?

I have heard about the "Lazy" label. I don't buy it at all. You should compare a masonry or carpentry job done by a Mpwani to one by Mumbara as see for yourself. You can get highly specialized fundis at the coast able to turn a sandy, muddy / mangrove wall in to something harder than concrete. What is more is the workmanship. Whatever is made looks neat and not half baked. No corners cut.

I can concede that Kenyans may be hampered by corner cutting. You give them cement to use and only half ends up on the building. No wonder buildings are collapsing daily.

My own anecdotal evidence..kenyans outside coast[you are coastarian and might be used to lazy coastal folks) are very hardworking and generally more educated than most of sub-saharan peers..but they love to cut corners and steal. Work ethic of kenyans is very good. Tazania might deliver but in how many years? By then a Kenyan fundi would have delivered 3 more buildings.

The thieving part is a result of the entire country accepting wizi as a legitimate way of making it in life. The labourers are at the bottom of the food chain and follow the examples set by those above. I have sat at places where these type of people are exchanging stories and listened as they glorified people who had even murdered to get rich.

Generally, Kenyan Fundis have just about sufficient skills to complete a task. But they lack the extra finesse to make it shine. You live in Nairobi close to Arusha. Next time you are building get some Ethiopians or Tanzanians and see how much you will save and just how beautiful the job would be.

Ugandans are as "good" as Kenyans.

[RVtitem]

Omolo, Pundit,

I think everything is over valued in Kenya except for human life.

Kenya is headed nowhere under the current regime...this is been my keen observation.

[gout]

People at the Coast have to go easy ...Nature has it that way for them...pressure at the coastlines slows down metabolism ...reason why mtu wa bara akitoka bafu kwenda kuvalia shati ushaanza kusweat ...eating!! itself gets you sweating like a fool .....

Nature has provided the coastal people with easy to get food coconut, fish and even alcohol-mnazi (no brewing!!) ...and modern routes out poverty - beach tourism ..........why would you hustle like a disadvantaged overpopulated kikuyu/kisii or a kalenjin who has to live in the wild?

[RV Pundit]

I think you should factor in the ability to adopt new tools and techniques...for instance Americans or Scandinavians are good capernters coz they have power tools...you'll find many nairobi carpenters compared to say mombasa or TZ or uganda...have adopted more tools and techniques...that make their work easier. The same with masonry...it nearly standard now to find cement mixers and little masonry tools in any construction site in Nairobi...this is what makes labour more productive and cheaper in the long run.

But key predictor for better labour productivity I dare say is the level of education (and of course capital..loans and savings come into play). It is easier for someone who has gone to form 4 and some college..to buy a cheap chinese power machine or laser cutter...than std 3 drop out at the coast..who apprenticed into a job.It is also easier for them to check the internet, download the latest designs and howtos...

Of course the slothfulness (due to culture) of TZ and coastal people need to be addressed. Where folks engage in fitina in job or just do not see the need to hurry up.

How about the average labour cost?

I have heard about the "Lazy" label. I don't buy it at all. You should compare a masonry or carpentry job done by a Mpwani to one by Mumbara as see for yourself. You can get highly specialized fundis at the coast able to turn a sandy, muddy / mangrove wall in to something harder than concrete. What is more is the workmanship. Whatever is made looks neat and not half baked. No corners cut.

I can concede that Kenyans may be hampered by corner cutting. You give them cement to use and only half ends up on the building. No wonder buildings are collapsing daily.

[Omollo]

Labor
According to a study

Nothing available specific to East Africa but Kenya is one of the countries in the study.

[RV Pundit]

Interesting article Omollo...it hard to imagine how south and east asia survive with really low wages. I think they can afford to do this because for most part food (rice) is really dirty cheap, and gov services (such as free schooling) is available.

[Omollo]

I wondered too before I closely looked at the so called "Invisible" and "Indirect" Costs. Most of the wages earned or not earned are wasted for Africa while an average worker in East Asia earns what he earns in real terms.

Interesting article Omollo...it hard to imagine how south and east asia survive with really low wages. I think they can afford to do this because for most part food (rice) is really dirty cheap, and gov services (such as free schooling) is available.

[Georgesoros]

Asia has governments that look after their people.
Africa has governments that look after their leaders.

[Omollo]

Actually if you end blackouts, the costs go down tremendously. Africa is leading in the theft of electricity.

Asia has governments that look after their people.
Africa has governments that look after their leaders.

[gout]

who really benefits from low labour and power costs?? how is Ethiopia benefitting from powering Chinese firms at $0.05Kwh...how are Ethiopians benefittting by getting paid $30-$70 in factories making crazy profits

this is really a dilemna...after investing so much on developing power grid,cheap housing, transport infrastructure you get your people paid peanuts..your power is bought at throw away price.... you have to give investors land for free??? while repaying loans at crazy rates.....is this really what global competitiveness should look like?

[RV Pundit]

The danger or replicating EPZs. But i guess when you were getting zero shilling; then 70 dollar is good money. Yes cost-benefit analysis need to be done before.

who really benefits from low labour and power costs?? how is Ethiopia benefitting from powering Chinese firms at $0.05Kwh...how are Ethiopians benefittting by getting paid $30-$70 in factories making crazy profits

this is really a dilemna...after investing so much on developing power grid,cheap housing, transport infrastructure you get your people paid peanuts..your power is bought at throw away price.... you have to give investors land for free??? while repaying loans at crazy rates.....is this really what global competitiveness should look like?