Kwanza, it’s a real hustle. You see sales guys out here closing huge deals, bringing in millions for the company, but their payslip? Pole sana. It feels like a total disconnect, like their sweat isn’t valued.
But don’t worry, this isn’t just a rant. We’re going to break down exactly why this happens in Kenya and, more importantly, give you the exact steps to fix it for good. Sawa?
Why This Happens: Common Causes
Outdated Commission Structures
Many companies are still using commission plans designed years ago, based on old market rates. They often cap your earnings or have complex, slow-paying portals like SAP or Oracle that make it hard to track and claim what you’ve truly earned, eating into your real income.
The “Cost Centre” Mindset
In the accounts department, sales is often seen as a cost, not the engine of revenue. Budgets for salaries and commissions are set rigidly in annual plans, so even when you smash targets, management is reluctant to increase the “expense” line, preferring to keep that profit.
Lack of Negotiation Skills & Market Knowledge
Many salespeople in Kenya don’t know their true market worth. They accept the first offer without negotiating better base pay or commission rates, because they fear losing the job opportunity in a tough economy. This sets a low benchmark for everyone.
Over-reliance on Basic Salary
The system is built to make you feel secure with a small, predictable monthly salary, while the big money from commissions is treated as a “bonus.” This makes companies complacent, as they know you’ll cover your bills with the base pay, reducing pressure on them to review your total package regularly.
How to Fix: Why are sales people underpaid yet they make millions for their companies?
- Document Your Value with Data: Before any meeting, compile a simple report. Use your CRM like Salesforce or Pipedrive to show your exact sales figures, client growth, and revenue generated versus your total earnings. Put this in a one-page document.
- Research and Set Your Market Rate: Don’t guess. Check platforms like BrighterMonday or MyJobMag for similar roles. Talk to recruiters. Know the standard commission percentage for your industry in Kenya, whether it’s 5% on tech sales or 10% on FMCG.
- Schedule a Formal Review Meeting: Request a sit-down with your direct manager and, if possible, HR. Don’t just complain in the corridor. Frame it as a “performance and compensation review” to align your pay with your contribution.
- Present Your Case and Propose a New Structure: In the meeting, present your data. Propose a clear, uncapped commission plan or a higher base salary. Suggest a trial period for the new structure if there is resistance, to prove it benefits the company too.
- Get Any Agreement in Writing: If a new deal is reached, insist on an official addendum to your contract or a signed letter from HR. Never rely on a verbal promise. This document is your protection.
If the fix doesn’t work and your company refuses to engage, it’s time to escalate your job search. Update your CV with your quantifiable achievements and start applying through reputable agencies. As a last resort for contractual disputes, you can seek advice from the Federation of Kenya Employers (FKE) or consult a labour rights lawyer; an initial consultation might cost around KES 3,000-5,000.
How to Prevent This Problem in Future
To stop this cycle, you need to build habits that protect your worth from day one. Here are specific actions to take:
- Negotiate Your Package Before You Sign: Never accept the first offer. Use your research to negotiate a higher base salary and a clear, written commission structure as part of your initial employment contract.
- Track Everything in Your Personal Record: Don’t rely only on the company CRM. Keep your own simple spreadsheet or use a free app like Google Sheets to log every sale, client, and commission earned each month. This is your evidence.
- Schedule Quarterly Self-Reviews: Every three months, block time to compare your personal sales record against your payslip. If there’s a mismatch, address it immediately with your manager instead of waiting for annual reviews.
- Build Your External Network: Regularly connect with other sales professionals on LinkedIn or at industry events. This keeps you informed on market rates and opens doors to better opportunities, giving you Use.
The Bottom Line
The core fix is to stop seeing yourself as just an employee and start acting as the business partner you are. Your pay must directly and transparently reflect the value you bring in, shillings for shillings. This requires continuous documentation, confident negotiation, and a refusal to settle for vague promises.
Your next move is clear: open a new document right now and start listing your sales achievements from the last six months. That list is the first step to claiming what you’re truly worth.
Frequently Asked Questions: Why are sales people underpaid yet they make millions for their companies? in Kenya
Is it even legal for a company to cap my commissions?
Yes, it is generally legal if it’s stated in your contract. However, a capped commission plan is often a sign of an outdated and unfair compensation structure that doesn’t reward top performance.
You should negotiate to remove or raise the cap, especially if you consistently exceed targets. A good plan rewards unlimited growth.
What if my manager says “the company budget won’t allow a raise” right now?
This is a common deflection. Your response should be to focus on the future. Propose a new, performance-based plan to start next quarter or financial year.
Ask for the discussion to be minuted and a follow-up date set. This moves you from a “no” to a concrete plan, putting the ball in their court.
How do I find out the real market rate for my sales role in Kenya?
Don’t rely on gossip. Use job boards like BrighterMonday and LinkedIn Salary insights. Even better, confidentially consult with a few professional recruitment agencies specializing in your industry.
They have the latest data on what companies are actually paying and can give you a realistic range, from base salary to commission percentages.
I’m scared to negotiate and lose my job. What can I do?
Frame the conversation around shared success, not a demand. Use your data to show how a better package for you leads to more revenue for the company.
Remember, a good employer wants to retain top talent. If they let you go for asking fairly, it wasn’t a place where you could grow anyway.
What’s the one document I must have before a pay review meeting?
You must have a one-page performance summary. This isn’t your company’s CRM report, but a simple document you create listing your closed deals, revenue generated, and key clients brought in.
This personal record is your most powerful tool. It turns your hard work into undeniable, negotiable facts that are hard to argue against.
