Policies to unlock job opportunities for Kenyan youths

 Kenya faces a narrowing window of opportunity to harness its youthful population as a demographic dividend.[Courtesy]

Kenya must take urgent and coordinated action to address youth unemployment if it hopes to harness the potential of its rapidly growing young population, speakers at the launch of a new study on youth employment have said.

Speaking at the unveiling of the Political Economy Analysis of Youth Employment in Kenya, Dr Elizabeth Lule, board chairperson of the African Institute for Development Policy (AFIDEP), warned that the country faces a narrowing window of opportunity to harness its youthful population as a demographic dividend.

The study conducted by the African Institute for Development Policy (AFIDEP), in partnership with CAP-YEI (Youth Empowerment Institute), comes at a time when between 800,000 and 1,000,000 young Kenyans enter the labour market every year seeking jobs, economic independence, and opportunities to contribute to national development.

However, many find themselves unemployed or trapped in informal and precarious work that offers little income security, social protection, or prospects for career advancement.

"Every year, hundreds of thousands of young Kenyans enter the labour market with aspirations for productive work and meaningful participation in society. Yet for many, these aspirations remain out of reach," Said Dr Lule.

The challenge, she said, is not unique to Kenya. Across Africa, governments are grappling with how to convert rapidly expanding youth populations into engines of economic growth.

Failure to do so, they warned, could result in rising inequality, social frustration, insecurity, and lost opportunities for an entire generation.

"The window for a demographic dividend is very limited. This creates a sense of urgency that we must act now," the speaker said.

Central to the solution, according to the study, is the creation of quality jobs, investment in relevant skills, and support for entrepreneurship and innovation. Particular emphasis was placed on preparing young people for a rapidly changing global economy shaped by technological advancements and artificial intelligence.

"The world is changing. Technology and AI are here. We must ask ourselves whether we are creating the skills needed to respond to these developments," the speaker added.

The launch also highlighted AFIDEP's role in bridging the gap between research, policy, and practice in Africa's development agenda.

While Kenya has made substantial investments in youth development policies, skills programmes, entrepreneurship initiatives, and digital innovation, the study finds that greater impact depends on stronger implementation, coordination, and alignment with labour market needs.

Releasing the findings, Dr Joshua Magero, a Research and Policy Analyst at AFIDEP, noted that, “Kenya’s youth employment challenge is not a lack of ideas or policy frameworks, but a lack of evidence-informed policy formulation, programming and tracking.

“We must align public investment, private sector incentives, and skills development to ensure that economic growth translates into real jobs for young people,” he said.

Key sectors identified as having high employment potential include agriculture, manufacturing, construction, agribusiness, digital services, the blue economy and the leather value chain.

The study says targeted investment in infrastructure, value addition and enterprise development could unlock significant job opportunities.

Dennis Muchiri, CAP-YEI Director of Programmes, noted that system alignment is critical for impact.

“Young people are not asking for charity. They are asking for systems that work. When skills training, financing, and enterprise support are connected to real market opportunities, youth-led businesses can thrive, create jobs at scale, and policies work best when they are informed by evidence and shaped by the voices of those they are meant to serve,” he said.

The study further recommends strengthening youth enterprises in the informal economy through improved financing coordination, business development services, and reduced barriers to growth.

It also calls for expansion of digital skills, connectivity, and online work opportunities, alongside stronger protections for gig and platform workers.

Stakeholders noted that the problem is not merely about the absence of jobs, but also about a persistent mismatch between the skills that young people acquire through formal education and the competencies that the labour market actually demands.

Many graduates, they warned, are entering the job market ill-equipped for the realities of a rapidly evolving economy.

Fredrick Muremi from Centum called on the government to support the private sector, support entrepreneurship, attract global capital and modernize the education system to align with the growing world and consequently to reduce the unemployment rate in the country.

Experts at the forum called on the government to move beyond rhetoric and translate existing youth policies into tangible, funded programs

They urged greater investment in technical and vocational education and training, arguing that white-collar employment alone cannot absorb the hundreds of thousands of young people entering the job market every year.

Purity Ngina, Chief Executive for the National Gender and Equality Commission, advocated for the inclusion of women in the informal sector.

Dr Purity Ngina, CEO of the National Gender and Equality Commission, called for evidence use in policies that aim at improving the lives of young people. She called for an audit of the existing policies to determine.

To ensure inclusivity, the report urges targeted interventions for young women, persons with disabilities, refugees, and youth in arid and low-income regions to expand access to skills, finance, and employment opportunities.

They highlighted that Kenya has strong demographic and economic potential but must shift from policy formulation to effective implementation. With stronger coordination, evidence-based decision-making, and sustained investment in job-creating sectors, Kenya can transform its youth population into a key driver of inclusive economic growth.

Among the study’s recommendations is the establishment of a high-level national coordination mechanism to bring together government, private sector, development partners, and youth representatives to drive a unified employment agenda.

The report notes that fragmented implementation undermines progress and that stronger coordination would improve efficiency, reduce duplication, and enhance accountability.

AFIDEP Board Chairperson, Elizabeth Lule, emphasised that Kenya already has strong policy foundations but requires stronger execution.

“The evidence we are presenting today demonstrates that solutions already exist within Kenya's policy architecture. What is needed is stronger coordination, more deliberate investments, better alignment between skills and labour market demand, greater support for productive sectors, stronger protection for informal and gig economy workers, and greater accountability for results,” she noted.

The study highlights persistent gaps between education, skills development, and labour market demand, recommending expansion of apprenticeships, internships, work-based learning, and stronger employer-training institution partnerships. It also calls for a national skills forecasting system to guide training investments.