- Youth unemployment in Kenya poses a significant challenge, with nearly 75% of the population under 35 facing limited job opportunities.
- By equipping young people with the skills and resources to start their own businesses, the nation can create jobs and drive local economic growth.
- A youth employment program in Kenya has benefited over 155,000 young people, allowing them to launch 86,000 businesses, creating 125,000 jobs, and increasing incomes by 50%.
Kenya faces a critical issue with job quality. Although the unemployment rate is relatively low, at 5.4%, and youth unemployment stands at 8.4%, many jobs are in the informal sector, where stability and pay are lacking. With just 10% of the workforce in formal employment, many are trapped in low-skilled, self-employed roles, struggling to thrive. The need to tackle this issue is critical. By 2030, Kenya's population will reach 63.9 million, with 22.3 million aged 15-34, intensifying the youth unemployment challenge. In Kenya, enhancing micro and small enterprises offers a promising path forward by creating new opportunities for vulnerable youth. For those not inclined toward entrepreneurship, targeted support such as apprenticeships, job preparation, and placement assistance is essential.
In Kenya, “Ujasiriamali,” or entrepreneurship, plays a key role in these efforts. One inspiring example of this approach is Liz Kerubo Nyakundi, a young entrepreneur whose journey from unemployment to business owner began with the Kenya Youth Employment and Opportunities Project (KYEOP) supported by the World Bank in Kenya. Initially unsure about receiving government support, Liz applied for the KYEOP startup grant, driven by her passion for starting a honey-processing business. With an initial grant of $400, accompanied by business training in basic accounting, marketing, and key tips to start a business, Liz established her brand, “Akila,” and embarked on a transformative path in agribusiness. Just six months after receiving her first grant, she expanded her business to include beekeeping and passion fruit farming, creating a sustainable income. After receiving two grants from KYEOP, young Kenyan Liz Kerubo Nyakundi now operates a thriving business producing honey sold to local offices and households.
Nearly 86,000 youths have launched their own businesses and embodied this “Ujasiriamali” spirit with the support of KYEOP. Remarkably, 88% of the beneficiaries who received grants like Liz successfully launched or expanded their ventures. By fostering entrepreneurship as a viable career path, KYEOP equips participants with the necessary skills and instills a sense of agency among young people.
A Transformative Initiative to Tackle Youth Unemployment
Liz's success goes beyond personal achievement: it aligns with the broader objectives of the Government of Kenya to tackle youth unemployment through Kenya’s Vision 2030, which aims to transform Kenya into a competitive and prosperous country with a high quality of life. Recognizing the urgent need to provide better opportunities for young people, the World Bank has supported Kenya in capitalizing on youth potential, including via short-term programs like KYEOP. This initiative is a key contributor to the country's goals and helps prioritize human development. The project was implemented by both the government—through the Small and Micro Enterprises Authority (MSEA)—and the Kenya Private Sector Alliance (KEPSA).
KYEOP takes a comprehensive approach to youth employment by addressing supply, demand, and intermediation gaps in the labor market. This multidimensional strategy tackles various constraints such as skill shortages, low private sector job creation, and information deficits about job opportunities. Selected from among 12,000 applicants, the 750 beneficiaries of KYEOP received awards of up to $36,000, leading to the creation of 2,700 new jobs across Kenya. Additionally, 63,500 beneficiaries received essential skills training, with over 33,000 earning skill certificates. Overall, KYEOP generated 125,000 direct jobs and enabled beneficiaries to employ an additional 30,000 youths, significantly boosting local economies and providing pathways for young people like Liz to thrive.
KYEOP supported women in overcoming entrepreneurship challenges, especially in accessing capital. It provided resources like outreach for the Business Plan Competition, childcare services, and direct grants, empowering young women to succeed. Additionally, special efforts supported hard-to-serve youth, including the establishment of quotas for individuals with disabilities, as well as the “Future Bora Initiative,” which helped 1,900 vulnerable youths. As a result, women experienced significant improvements in employment status, with an 18.7% increase for women compared to 18.3% for men.
By partnering with local businesses, KYEOP helped young entrepreneurs to understand available opportunities, fostering an ecosystem that encourages entrepreneurship. The program also connected an additional 220,000 youths to essential government programs, like Access to Government Procurement Opportunities (AGPO), thus boosting the potential of their businesses. This comprehensive support has allowed Liz and many others to turn their ideas into thriving companies, contributing to personal and community growth.
The successes of KYEOP have led to its expansion into the National Youth Opportunities Towards Advancement Project (NYOTA), aiming to serve 800,000 vulnerable youths aged 18 to 29 across all 47 counties in Kenya. Kenya's investment in youth through initiatives like KYEOP and NYOTA can have a positive impact on new and existing entrepreneurs and can improve access to wage employment for vulnerable youth. As the country continues to foster the “Ujasiriamali” spirit, and with the World Bank as a vital ally in this mission, Kenya is set to create a brighter future for its next generation, demonstrating that evidence-based interventions can truly make a difference in job creation and economic development across Africa.
Distributed by APO Group on behalf of The World Bank Group.
