Over the past two decades, government data has shown we will have,not only a bigger population to plan for, but also a youth bulge that will be an economic blessing or curse, depending on how we manage it.
Today, we have millions of unemployed but energetic youths. More are still graduating from colleges and universities at a time even the free education that Kenyans have been enjoying is drifting back into unaffordability.
Thus, one can understand why immediate solutions such as menial jobs and job placement abroad come to mind. Not only do these offer quick jobs, they also bring in more foreign currency through “diaspora cash remittances” which, the last time I checked, had overtaken tourism in terms of revenue generation.
That said, we cannot have exportation of labour and other stop-gap measures, such as menial jobs, as our only answers to the challenge posed by the youth bulge. In fact, failure to come up with a long-term solution reduces the off-shore jobs plan to little more than an expensive ticket abroad.
Without a strategic approach, we are merely delaying the inevitable reckoning with our own economic structure – we are just kicking the can down the road.
Countries that have built sustainable job ecosystems did not do so by outsourcing their workforce; they achieved it by being intentionally creative, investing in their own people, and creating macroeconomic environments where businesses thrive and expand.
This competition for quality jobs, in turn, refines job standards, leading to higher incomes and better lives for citizens, and boosting the country's global competitiveness.
However, without a long-term plan, the young minds that would have grown to create, innovate and expand the economy end up doing menial jobs abroad – even as their country desperately needs thinkers and creators to achieve the kind of prosperity envisaged in Vision 2030.
We are fortunate to have a diversified economy. From agriculture to ICT, tourism, services and manufacturing, we have a strong base to build on. What is missing is a deliberate, targeted strategy to map out these sectors, identify their growth potential and direct support where it matters most.
Our potential lies not in seeking jobs elsewhere, but in reimagining and revitalising our key sectors here at home. Kenya's clearest path to job creation is through SMEs.
Kenya’s clearest path to job creation is through small and medium enterprises (SMEs), particularly in manufacturing. The government can catalyse this sector through strategic public investment and policy reform. Manufacturing, agriculture, tourism and ICT are among the sectors most capable of absorbing our youth. Unfortunately, they continue to be underfunded, overregulated and underserved.
What’s more, even when interest rates are falling along with the cost of loans, the SME ecosystem – which is the backbone of the Kenyan economy – continues to be starved of much-needed affordable credit due to the National Treasury’s insatiable thirst for domestic credit, and a lack of a business environment that enables enterprises to thrive to a point where they can convince banks and micro-lenders of their ability to repay loans without hassle.
The government, through the Kenya Industrial Estates (KIE), offers funding support—but with strict collateral conditions that automatically exclude the very entrepreneurs who need it most: young, ambitious Kenyans without access to land titles or large assets.
It is time for a bold shift. The Kenya Kwanza government should establish a new loan scheme offering unsecured loans of at least KSh 5 million to qualifying SMEs in the manufacturing sector.
These could be tied to a stringent criterion requiring target businesses to have at least three years of operational experience, an annual growth rate of 50 per cent or more, and a demonstrable potential to scale.
This could be executed in partnership with private sector lenders, with the government underwriting loans for SMEs that, for instance, hire at least 20 permanent, pensionable employees within the first 60 days, register all employees for Paye, SHA, and NSSF, and participate in national job training programmes and accept three trainees every six months for the duration of the loan.
This would be a win-win solution, where economic growth is deliberately tailored to incentivise government programmes and job creation, while expanding national savings for future growth. If implemented with just 5,000 vetted SMEs, this initiative could yield a staggering 100,000 formal jobs in two months.
And beyond direct employment, it would give jobseekers real, on-the-job training experience – something our education system often overlooks. Beyond financing, the government must embrace active labour market policies that bridge the gap between jobseekers and opportunities.
These include vocational and technical training aligned with current market needs, public-private job placement services, wage subsidies for businesses hiring youth, and policies that promote labour mobility and protect workers through social safety nets.
We also need to invest more in technical and vocational education and training (TVET) institutions. Our young people don’t just need degrees; they need skills that are in demand.
Today, it costs more to hire a technician than an office assistant – meaning we may be neglecting critical economic drivers in our rush to produce university graduates.
No discussion on job creation is complete without agriculture. It remains our largest employer, yet continues to suffer from neglect. I often pass maize millers in my locality and see dozens of Tanzanian-registered trucks offloading maize. This is a missed opportunity.
We should be supporting all our farmers – not just maize growers – with affordable inputs, guaranteed markets, and irrigation systems so we can not only feed ourselves, but begin to export surplus. A strong, well-funded agricultural sector is one of the easiest and most direct ways to employ young people – especially in rural areas.
With the political will to take bold, unconventional steps, we can build a future where every young Kenyan can not only dream, but also earn, build, and thrive – right here at home. This is not just possible, but necessary.
Mr Kombo Nyaga is the Market Development Team Lead, Katya Natures. Email: [email protected] Twitter/X: @Katya_Natures
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