Employers call for greater focus on enterprise to hit jobs target

Employers have asked the national and county governments to boost the economy by enhancing innovation and entrepreneurship.

The Federation of Kenya Employers (FKE) said this would ensure key growth sectors, such as agriculture, education and health, benefit the poor and those in rural areas.

FKE CEO Jacqueline Mugo added that economic growth rate indices alone do not improve living standards for the country, unless counties initiate tangible projects that create employment.

“Kenya grew by over 5 per cent last year, but this has not translated into positive changes on the ground. Unemployment is soaring, and as employers, we want to find out why this is the case,” Ms Mugo said.

She called on the Government to invest heavily in sectors that support millions of livelihoods, such as agriculture.

“We should not abandon sectors that have shown growth. We should refine and improve them through value addition, innovation and entrepreneurship, especially in rural areas.”

Despite Africa’s relatively strong economic growth in the past decade, rural populations, who make up the majority of the continent’s citizenry and are largely sustained by agriculture, have not reaped the benefits.

“In Kenya, the challenge of unemployment persists, with overall unemployment at 12.7 per cent. The youth, who form 35 per cent of our population, have the highest unemployment rate at 67 per cent. These figures will double by 2043,” Mugo said.

“The solution to these challenges is to create enterprises that will leverage the job market.”

She added that if counties can allocate resources to activities such as dairy, fish and poultry farming, among other agriculture activities, the returns from these sectors would be higher.

“Any investment carried out at the rural level automatically translates into tangible economic activities that can lift living standards. This is where the Government should invest more,” she said.

Employers will hold a summit in Naivasha in May to discuss what sectors they believe can create jobs.

The meeting will also address how African governments can exploit the private sector’s ability to address high unemployment levels, as well as the strategies needed for countries to embrace labour policies that promote enterprise growth.