Research shows that the majority of Kenyans are employed in the informal sector and this trend is expected to continue.
Many Kenyan youths are aware of this reality and consider it when looking for jobs.
The youth are moving away from formal employment and are choosing informal employment instead.
Studies published by the Kenya National Bureau of Statistics show that employment has steadily increased from 2014 to 2019.
At least 14.7 million Kenyans were employed in 2014.
Of these, 12 million were employed in the informal sector and 2.7 million were employed in the formal sector.
In 2019, an estimated 15 million Kenyans were employed in the informal sector, contrasted with 3 million, who were employed in the formal sector. 18.1 million Kenyans were employed in 2020.
The informal sector is much larger, and it is growing fast.
The informal sector is critical for job creation in Kenya.
It generated roughly 768,000 new jobs in 2019, against 78,400 created in the formal sector.
In the current work environment, informal businesses have become the main labour market entry for young Kenyans.
As of 2019, individuals aged 18-34 formed the majority of employees in informal businesses in the country.
This could be attributed to the inability of the formal sector to take in the high number of job seekers.
The largest informal enterprises exist in developing countries. This is because most people cannot afford to pay the taxes and regulatory fees that come with a formal business.
The informal sector greatly contributes to the country's GDP, about 32 per cent to be specific.
It is also how most Kenyans earn a living. With these being the current trends, then the Kenyan youth just find it unrealistic to aspire to formal employment.
Employment in the formal sector in Kenya stood at 2.7 million in 2015. In 2020, 2.9 million Kenyans were employed in the formal sector.
That is an increase of only 200,000 people.
One reason could be that a lot fewer jobs are created in the formal sector as compared to the informal sector.
Another reason is that the availability of formal jobs is decreasing.
For many young people looking to enter the job market, this reinforces the idea that there aren’t enough jobs. As a result, they turn to informal markets for employment and opportunities.
The level of education is a leading factor in employment.
You are more likely to get formal employment if you have completed secondary and tertiary education.
However, many Kenyan graduates end up unemployed due to an apparent job deficit. Getting a college education is not a guarantee of getting a formal job.
The government needs to work on facilitating the transition of its educated citizens into formal jobs.
Formal employment offers decent working conditions, job security and fulfilment.
With informal employment, there are high chances of ending up poor.
The majority of employees in informal enterprises are not part of any labour unions and hence are likely to be underpaid.
Government initiatives to create more jobs for the youth are important if we are to increase formal employment.
Currently, the Kenyan youth believe informal employment is the only option for them, even if it may not be the safest.
Due to the pandemic, more than 5 million Kenyans in the informal sector lost their jobs in 2020.
Bridging the gap between the number of young Kenyans and the available jobs should be a top priority for our government.
Student at Multimedia University
Edited by Kiilu Damaris
