Youth Unemployment Persists Amidst Skills Mismatch

Kenya's burgeoning youth population continues to grapple with high unemployment rates, largely attributed to a significant mismatch between the skills they possess and those demanded by the evolving job market. This challenge poses a substantial impediment to the nation's economic progress and overall stability.

According to the Federation of Kenya Employers (FKE), youth aged 15-34, who constitute 35% of the Kenyan population, face an unemployment rate of 67%. This figure is considerably higher than the overall national unemployment rate of 12.7%. Annually, over one million young individuals enter the labour market, many lacking adequate skills or having discontinued their education without further vocational training.

Historical Context and Policy Frameworks

The issue of youth unemployment and skills gaps is not new in Kenya. Various governments have implemented initiatives to address this challenge, including the National Youth Policy (2007), the National Youth Council (NYC) Act (2009), and the National Action Plan on Youth Employment (2007-2012). The Kenyan Constitution (2010) also mandates the state to ensure youth access relevant education, training, and employment opportunities.

More recent government efforts include the Kenya Youth Employment Opportunities Project (KYEOP), Ajira Digital Programme, Uwezo Fund, and Kazi Mtaani. The National Youth Opportunities Towards Advancement (NYOTA) Project, a five-year government initiative, aims to empower 820,000 vulnerable youth across all 47 counties by providing training in socio-emotional and work-readiness skills, apprenticeships, and support for business development.

The Role of Technical and Vocational Education and Training (TVET)

Technical and Vocational Education and Training (TVET) institutions are recognised as crucial in equipping youth with innovative skills for employment and self-reliance. The government has invested in repositioning TVET institutions for economic transformation, with the Principal Secretary for the State Department for TVET, Dr. Esther Muoria, highlighting their role in industrialising the country.

Despite these efforts, challenges persist. A 2016 study found that while TVET institutions impart relevant skills, access to credit, technical support, and technology remain impediments to the growth of TVET graduate enterprises. Furthermore, inadequate digital infrastructure in some TVET institutions impedes quality training.

Stakeholder Perspectives and Data

Employers consistently report concerns regarding the level and relevance of both socio-emotional and cognitive skills among job applicants and recently hired workers. This skills gap negatively impacts recruitment and leaves critical vacancies unfilled across various sectors, affecting business competitiveness and productivity.

A GeoPoll survey conducted between November 10 and 15, 2024, revealed that 38% of Kenyan youth respondents identified as unemployed, with 37% employed full-time and 26% part-time. The survey also indicated a strong entrepreneurial spirit, with 87% of youth expressing interest in starting their own businesses.

Risks and Implications

Failure to adequately address the skills gap carries several risks, including continued high rates of youth unemployment, which could foster social unrest and hinder economic growth. Businesses may struggle to find qualified personnel, impacting productivity and competitiveness. Moreover, a workforce lacking relevant skills could impede Kenya's ability to capitalise on emerging opportunities in sectors such as technology, green energy, and advanced manufacturing.

What to Watch

The ongoing efforts to align education and training with labour market demands will be crucial. This includes the implementation of recommendations from the Presidential Working Party on Education Reform (PWPER) in October 2023, which advocated for curriculum review to promote technical and vocational education and training. The success of initiatives like the NYOTA Project in equipping youth with in-demand skills and fostering entrepreneurship will also be a key indicator of progress.