by Laura Darcey
Young people, who against the odds managed to stay in school, graduate and acquire professional qualifications, often find that educational attainment is not linked to employment in Kenya. In fact, youth unemployment is extremely high. Although overall unemployment in Kenya is 12.7%, Kenyan youth (18 to 34-year olds) have the highest unemployment rate of 35% 1 . Only 17% of employed youth are able to secure formal jobs, and up to 25% of youths with tertiary education are unable to find employment 2 . Many young Kenyans resort to underemployment, meaning their work does not provide them with regular hours, or does not align with their skills.
Formal education has long been seen as a reliable method to break the generational cycle of poverty, but a regression analysis found that secondary education is not sufficient to break out of poverty. Access to education counts for little when the low quality of education and the high opportunity cost of attending school are combined with weak links between the formal education system and the labour market 3 . But ultimately, many of these problems have arisen due to the lack of formal employment opportunities in the Kenyan economy.
Why are there so few formal employment opportunities?
According to the Kenyan government, the growth of the economy has not been adequate to generate sufficient employment opportunities to absorb young Kenyans looking for work. Each year the labour force increases between 500,000 and 800,000, but poor and worsening economic conditions and low levels of business creation mean the economy has not been able to provide sufficient employment opportunities 4 .
A growing informal economy, and a stagnant formal economy
While Kenya’s informal economy is large and rapidly growing, its formal economy is small and relatively stagnant. Between 2010 and 2015 only 354,000 workers were added to Kenya’s formal economy, compared to 4.8 million who were added to the informal economy in roles such as street vendors, motorbike taxis, small-scale manufacturers and day labourers 5 .
Informal jobs are unattractive. They are unreliable, poorly paid and offer few or no worker protections and government benefits. People instead seek formal jobs, but there are simply not enough available for young people. While Kenya has experienced some economic growth, this has been in high GDP-creating sectors such as the mining and extractive sectors, which are not labour intensive and create few jobs 6 .
Kenya has unusually low levels of new firm creation.
Firms creation is extremely risky, expensive and time consuming. There are stringent regulatory procedures to formal registration and they require a certain threshold of revenue. Even connecting to the internet, a requirement for formal organisations, is burdensome. Just connecting to the power grid in Nairobi takes 6 steps, more than 5 months, and costs 10 times more than the Gross National Income per Capita 7 .
High levels of corruption in Kenya also contribute to low levels of firm creation as employers attempt to avoid paying the bribes associated with setting up and running a business. 1 in 6 Kenyan companies report having to give gifts and make informal payments in order to obtain an operating licence, and 1 in 3 companies report having to pay bribes in order to obtain construction permits 8 .
Yet new firms create the highest level of new employment opportunities in the formal sector.
In Kenya, less than 20% of manufacturing and services firms are younger than 5 years old 9 .
What else contributes to youth unemployment?
Competition for formal jobs
With youth hesitant to work in the informal sector, they engage in fierce competition to secure the few formal roles available, which offer them better pay, more development possibilities and labour protections. With so many candidates and so few jobs, educated youth apply for jobs in the formal sector, neglecting to find informal work where they will be faced with low wages and job insecurity.
But unconnected youth are at a huge disadvantage. Bribery and nepotism are rife in the formal job market. This means that qualified candidates are bypassed, in favour of those with connections in the market. 75% of Kenyan youth surveyed by the British Council agreed that “knowing people in high places is critical to getting a job” 10 .
Skills mismatch
While Kenya has prioritised education at the primary and secondary levels, both quality and access to higher levels of education are limited, and have posed challenges to the preparedness of Kenyan youth for the employment market and their attractiveness to employers. While employers are generally satisfied with the disciplinary knowledge of graduates, they find significant gaps in ICT skills, personal qualities (e.g. reliability) and transferable skills such as teamwork and problem solving.
In addition, the skill sets and aspirations of Kenya’s younger generation are often disconnected from the realities and demands of the labour market. For instance, only 11% of Kenyan youth aspire to work in agriculture despite the sector’s huge capacity for employment 11 .
A preference for older workers
Additionally, employers often prefer experienced workers over new market entrants. Hiring someone with a proven track record is less risky for employers, and older employees are likely to possess many of the soft skills (communication, teamwork, time management) vital for productive work.
Young Kenyans are very aware of this preference and believe the system is stacked against youth in favour of elders 12 . This belief is supported by the unemployment rate among 15-24- year olds which is almost triple that of older workers.
Where does that leave Kenyan youth?
Many Kenyan youth either remain unemployed or take up informal work that does not utilise their full potential. This situation is referred to as underemployment, where an employee experiences a skill underutilisation, works insufficient hours, or lacks opportunities for growth and advancement 13 . In rural Kenya, youth often become day labourers, pulling weeds or moving bricks on a building site. Their work is inconsistent, unpredictable, and they are paid a pittance, as little as 50 cents a day.
Young Kenyan women are even less likely to be employed than their male counterparts. They are less likely to be able to find jobs and are more vulnerable to workplace abuse, including sexual harassment 14 .
Kenya’s “youth bulge” could be a major asset and bolster the economy, but only if young people are able to find appropriate employment. Lacking this, Kenya is at risk of developing a lost generation, who languish in a stagnating economy and fight over jobs that always go to those with inside connections.
How does NTS ensure graduates find employment?
Everything we do at NTS is preparing our students to have a prosperous future and break the intergenerational transmission of poverty. Our students gain NITA qualifications in one of four vocational fields, all of which have been extensively researched by professionals to ensure that they are in growing economic sectors with an expanding need for qualified professionals. In addition to vocational studies, every student has classes in English, math and business skills. Students take control of their careers, learning interview techniques, self-presentation and practising different business skills. They learn how to manage their money, create long and short-term financial goals and how to make safe investments. They graduate ready to take control of their lives and begin the process of moving themselves and their families out of generational poverty.
NTS teachers are all qualified teaching professionals with advanced NITA certification as well as practical experience as business owners and employees. Many teachers work in businesses on the weekends and holidays to stay current in their field. However, all consider teaching their primary job and responsibility.
Once each quarter, NTS teachers develop a community service project for their students. This can range from rebuilding a wall falling down outside a church, to making clothes for children in a poor neighbourhood, to giving haircuts to the elderly. Students become known locally for their skills, their professionalism, and their caring attitude. Teachers further elevate respect for NTS in the local community, taking classes onto job sites where students assist employers, demonstrate their skills and ensure employers feel confident hiring NTS graduates in the future.
But support doesn’t stop when students graduate. NTS is developing a vibrant graduate program to support our students in the first 5 years of their careers. Today, this includes assisting graduates with job placement, holding regular get-togethers where they share experiences and provide mutual support, and making staff available for counselling when needed. In the future, this program will also include assistance with developing new skills, financial counselling, and a mentoring program in which graduates mentor current students. The goal is to create a vibrant NTS graduate community building an ever-expanding network of support.
References
1 Ariemba, Youth Unemployment Crisis in Kenya: Causes and Options, https://www.kiep.go.kr/aif/issueFileDownload.es?brdctsNo=342694&brdctsFileNo=84227#:~:text=Accelerating%20economic%20growth%20is%20central,jobs%20are%20of%20good%20quality.
2 UK Aid , Youth Employment in Kenya, https://www.britishcouncil.co.ke/sites/default/files/ng_kenya_youth_employment_in_kenya.pdf
3 USAID, Resilience and Sustainable Poverty Escapes in Rural Kenya, https://www.resiliencelinks.org/system/files/documents/2019-08/poverty_escapes_kenya_report_508_v2.pdf
4 UK Aid
5 Ariemba
6 UK Aid
7 World Bank Blogs, A blueprint for better jobs in Kenya, https://blogs.worldbank.org/en/jobs/blueprint-better-jobs-kenya
8 Gan Integrity, Kenya Risk Report, https://www.ganintegrity.com/country-profiles/kenya/
9 World Bank Blogs 10 British Council, Next Generation Kenya, https://www.britishcouncil.org/sites/default/files/h198_next_generation_kenya_a4_final_web.pdf
11 British Council
12 British Council
13 UK Aid
14 Ariemba