Youth Unemployment Crisis Deepens

Kenya's youth unemployment rate stands at a staggering 67% for those aged 15-34, who constitute 35% of the population. This figure is significantly higher than the overall national unemployment rate of 12.7%. Each year, over one million young people enter the labour market, many lacking adequate skills or having dropped out of school without further training.

The disparity between the skills possessed by young people and the demands of the job market is a major impediment to their entry into productive employment. Employers consistently report concerns regarding the level and relevance of both socio-emotional and cognitive skills among job applicants and recently hired workers.

Skills Mismatch Hampers Economic Growth

The widespread skills gap in Kenya negatively impacts recruitment and leaves critical vacancies unfilled across various sectors. This shortfall directly affects business competitiveness and productivity, as companies struggle to grow and create more jobs.

The digital economy, a significant driver of global GDP growth, offers immense opportunities for East Africa. However, a pervasive lack of tech skills is impeding innovation and digital transformation initiatives in Kenya. Research by SAP indicates that four out of five African organisations were negatively affected by a lack of tech skills in the past year. In Kenya, this led to increased pressure on existing staff (78%), reduced capacity for new projects (72%), and project delays (67%).

Government Initiatives and Policy Frameworks

The Kenyan government has implemented various initiatives to address youth unemployment and skills development. These include the Kenya Youth Employment Opportunities Project (KYEOP), Ajira Digital Programme, Uwezo Fund, and the National Youth Service (NYS) restructuring.

KYEOP, a World Bank-funded project, aims to create decent jobs and livelihoods for youth aged 18-29 in selected counties by providing skills training in sectors like construction, agribusiness, manufacturing, and services, alongside financial and mentorship support for youth-led enterprises. The project has trained over 47,000 youth and facilitated the establishment of more than 5,000 micro and small enterprises, creating over 26,000 jobs.

The National Youth Policy (2007) and the Kenya Vision 2030 also outline strategies for youth empowerment through skills and talent development, and the exploitation of entrepreneurial potential.

Stakeholder Perspectives and Calls for Clarity

Stakeholders are urging for greater clarity on the timelines, costs, and safeguards associated with current and future youth employment policies. There is a recognised need for education and training providers to align their offerings with the surging demand for market-driven skills, particularly in the digital economy.

The Federation of Kenya Employers (FKE) continues to partner with the government to support businesses in creating and sustaining new jobs, and to nurture entrepreneurship and innovation among the youth.

Evidence and Data

• Kenya's youth unemployment rate (15-34 years) is 67%.
• The overall unemployment rate in Kenya is 12.7%.
• Approximately 75% of Kenya's population is aged below 35 years.
• Over one million young people enter the labour market annually without adequate skills.
• 89% of employed Kenyan youth work in the informal sector.
• 60% of employers in Sub-Saharan Africa identify skills shortages as a leading constraint.
• In Kenya, 72% of young people cite lack of access to capital as a primary obstacle to starting a business.
• The digital economy contributes over 15% of total global GDP and has grown two-and-a-half times faster than overall GDP growth in the past decade.
• A 10% increase in mobile broadband access in less developed economies can yield a 2.5% increase in GDP.

Risks and Implications

High youth unemployment poses a significant threat to Kenya's social, economic, and political stability. It can lead to social unrest and hinder investment.

The widening skills gap, particularly in digital and technical areas, could further slow down the digital transformation of the Kenyan economy, impacting business competitiveness and productivity.

Unknowns

The precise size of the skills gap in Kenya remains unknown due to a lack of detailed research.

Timeline

• 2007: National Youth Policy launched.
• 2010: Constitution of Kenya anchors youth as a distinct demographic category.
• 2013-2017: Medium Term Plan II seeks to promote transformative youth empowerment.
• 2020: Kazi Mtaani Initiative launched in response to the COVID-19 pandemic.
• 2023 (September 25): Kenya's Community of Practice on digital skills and jobs gathered to discuss inclusive digital economy.
• 2024 (May 3): Kenya hosted its inaugural National Green Jobs and Skills Development Workshop.
• 2025 (October 2): Current date.
• 2030: Sub-Saharan Africa and India are expected to supply two-thirds of entrants to the global workforce.
• 2030: Kenya's youth population is projected to reach 22.7 million.
• 2045: Africa's youth population aged 15-24 is expected to double.

What to Watch

The effectiveness of government initiatives like KYEOP and Ajira Digital in bridging the skills gap and creating sustainable employment for youth will be crucial. The implementation of the Competency-Based Curriculum (CBC) is also expected to play a role in aligning education with market demands.

Related

• Kenya Youth Employment Opportunities Project (KYEOP)
• Ajira Digital Programme
• Uwezo Fund
• National Youth Service (NYS)
• Competency-Based Curriculum (CBC)
• Green Jobs for Youth Pact