A new study on youth employment in Kenya has found that the country can significantly expand dignified job opportunities for young people by strengthening policy implementation, investing in job-creating sectors, improving skills development systems and enhancing coordination across government institutions.
The findings are contained in the Political Economy Analysis of Youth Employment in Kenya conducted by the African Institute for Development Policy (AFIDEP) in partnership with CAP-YEI (Youth Empowerment Institute).
The study examines structural, institutional and political factors influencing youth employment outcomes and outlines what it describes as practical pathways for reform.
It draws on a mixed-methods approach that includes a review of national policy and labour market data, interviews with policymakers and development partners, and consultations with young people and private sector actors across key sectors of the economy.
The analysis also mapped institutional arrangements and programme delivery systems, identifying coordination gaps and implementation bottlenecks affecting youth employment interventions.
The study notes that its findings come at a time when nearly one million young people enter the labour market in Kenya each year. It observes that although the country has invested heavily in youth development policies, skills programmes, entrepreneurship initiatives and digital innovation, greater impact depends on improved implementation, stronger coordination and better alignment with labour market needs.
Releasing the findings, AFIDEP Research and Policy Analyst Dr Joshua Magero said Kenya’s challenge is not a shortage of ideas or policy frameworks, but gaps in implementation and tracking.
“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.
The study recommends the establishment of a high-level national coordination mechanism bringing together government, the private sector, development partners and youth representatives to drive a unified employment agenda.
It argues that fragmented implementation has slowed progress and says stronger coordination would improve efficiency, reduce duplication and enhance accountability.
AFIDEP Board Chairperson Elizabeth Lule said Kenya already has strong policy foundations but requires more effective 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. It recommends expanding apprenticeships, internships, work-based learning and strengthening partnerships between employers and training institutions.
It also calls for a national skills forecasting system to guide training investments.
Key sectors identified as having high employment potential include agriculture, manufacturing, construction, agribusiness, digital services, the blue economy and the leather value chain.
The report says targeted investment in infrastructure, value addition and enterprise development could unlock significant job opportunities.
CAP-YEI Director of Programmes Dennis Muchiri said system alignment is key to achieving 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.
National Gender and Equality Commission CEO Dr Purity Ngina called for greater use of evidence in policy development aimed at improving the lives of young people. She also called for an audit of 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.
The study concludes that Kenya has strong demographic and economic potential but must shift from policy formulation to effective implementation.
It adds that with stronger coordination, evidence-based decision-making and sustained investment in job-creating sectors, the country can transform its youth population into a key driver of inclusive economic growth.
