Youth unemployment is a significant and persistent challenge in Kenya. According to the latest official statistics, the country’s youth unemployment rate in 2024 stood at 11.9%, the highest rate in the region despite having the largest gross domestic product. In the same year, youth unemployment rates in Tanzania and Uganda were substantially lower at 3.3% and 4.5%, respectively.
To highlight the scale of the youth employment challenge, the World Bank reports that nearly 80% of Kenyans under 35 work in informal, low-quality jobs. Young women are disproportionately affected, as they face greater obstacles in accessing finance and formal jobs.
The government has implemented various youth employment initiatives over time, including Kazi Mtaani, Uwezo Fund, Ajira Digital Programme, and Kenya Youth Employment Opportunities Project (KYEOP). While these initiatives are effective in providing mentorship and entrepreneurship skills to young people, their impact tends to be short-lived.
Youth unemployment is a major threat to Kenya’s stability, as seen in its contribution to the recent Gen Z riots. To avert an uprising and maintain peace and stability in the future, the government must adopt comprehensive strategies to address the youth unemployment crisis.
To address the youth unemployment crisis, the government should consider the following policy recommendations.
Ensure equity and quality in our education system
Education inequality, marked by disparities in access to quality education, is intrinsically linked to youth unemployment. Students in rural areas and overcrowded urban areas often attend schools with inadequate resources and less qualified teachers, limiting their skill development. Disenfranchized individuals are forced to rely on informal and low-paying jobs.
Addressing education inequality requires a multifaceted approach aimed at closing gaps in resource allocation and establishing a conducive learning environment for every student, regardless of their background. Quality and education for all will lead to the discovery of more talents to power our economy. Talented youth can be a powerful engine for job creation through innovation and entrepreneurship.
Ban gambling and get young people working
Time’s up for gambling in Kenya. The gambling craze is one of the major drivers of youth unemployment in the country. Gambling, with its false promises of big returns and instant fortunes, turns many young people onto the path of financial ruin, addiction, and broken lives. High unemployment levels are unavoidable when young people use their hard-earned money to fuel their gambling addiction.
A total ban on gambling is the only solution to this craze. The economic benefits of gambling are nonexistent. The economic and social harm of gambling exceeds the gambling taxes.
Let’s empower young people to pursue entrepreneurship, which is a powerful way to build real wealth while creating jobs for others.
Intensify efforts to boost value addition to agriculture
Value addition not only boosts food security and income, but it also creates the much-needed jobs for the youth through the growth of backward and forward linkages. Youth engagement is crucial in achieving this agenda, as they can easily adopt new technology and develop value-added products.
Reduce taxes, especially on the informal sector
Cutting taxes will allow businesses and individuals with more disposable income, leading to more investment and increased job opportunities. On the other hand, over-regulating or taxing the informal sector can push many small businesses to shut down, resulting in higher unemployment and slow economic growth. We can’t apply punitive taxes on people who are just surviving, then wonder why businesses are closing and the economy isn’t thriving. The best strategy is to nurture small businesses to expand their productive capacity, then tax them later.
Support Entrepreneuership and Innovation
Finally, the reach of initiatives supporting entrepreneurship and innovation among young people should be expanded, such as the Kenya Youth Employment and Opportunities Project. More funding should be directed to support existing initiatives.
Increased support for textile and other labor-intensive sectors
The textile and leather industries are key labor-intensive sectors that create millions of jobs for Kenyan youth. Efforts to revitalize these industries in Kenya appear to bear no fruits mainly due to obstacles such as widespread corruption, supply chain inefficiencies, or lack of a supportive policy and regulatory environment. We should take lessons from countries like Vietnam and Bangladesh, and establish proper policy framework to revitalize these two key industries.
The government should implement policies to attract foreign investment and create a conducive business environment. These policies include tax breaks and duty-free import of machinery.
Improve Career Guidance Programs in high schools
The government, through the Ministry of Education, should work to enhance career guidance services in high schools. Career guidance not only helps individuals identify suitable career paths, but it also fosters the development of skills that align with the market’s needs.
Increase Corporate-led upskilling initiatives
Addressing youth unemployment requires partnership across public and private sectors. Private corporations have an essential role to play by using their expertise and resource to equip young Kenyans with practical and demand-driven skills. This will help tackle the issue of skills-related underemployment.
Conclusion
Implementing these strategic recommendations would significantly cut the rate of youth unemployment. By prioritizing youth employment, Kenya can achieve stability and rapid economic growth.
