The number of foreign job contracts cleared for renewal or extension in Kenya has dropped dramatically by 54.3 percent to 19,310 in the fiscal year ended June 2024, down from 42,254 contracts the previous year.
This marks the third consecutive year of decline in government-approved overseas jobs.
The Ministry of Labour and Social Protection attributes this significant decrease to enhanced enforcement measures that eliminated rogue recruitment agencies and a general decline in job orders from destination countries, with the ministry achieving only 21.4 percent of its 90,000 target for the year.
Despite the decline, President William Ruto's administration continues to view overseas labor markets as a crucial solution to Kenya's employment crisis.
The Government, cites that since September 2022, more than 243,000 Kenyans have secured international job opportunities in healthcare, agriculture, and construction sectors, with 12,000 openings in the last two months alone.
The government has implemented stricter oversight of foreign employment, including mandatory contract attestation by labor officers to ensure worker protection, with violations punishable by fines up to Sh200,000 or six months imprisonment.
The move follows concerns about worker safety in Middle East countries where 758 workers were repatriated in the past year, including 740 from Saudi Arabia.
While providing short-term relief, this approach may inadvertently hinder the development of sustainable, long-term solutions within Kenya itself.
According to the recent data by KNBS, the economy added just 209,900 formal jobs in five years.
Assuming we are adding one million people into the job market each year, it means that only 4.2% were absorbed in the formal economy over the last five years. As of 2023, Kenya had about 3.4 million Kenyans in formal employment.
This underscores the urgent need to address the structural issues driving economic informality.
To address this, the Government should focus on creating an enabling environment for small and medium enterprises through tax incentives, simplified registration processes and access to credit/funding oppportunities.
There's also an urgent need to align the education system with the skills demanded by emerging industries, particularly in technology and digital services.
By fostering innovation hubs and incubators, and promoting public-private partnerships in skills development, Kenya can work towards reducing its dependence on foreign job markets and build a more resilient, locally-driven economy.
Which is essential for generating quality jobs within Kenya and reducing reliance on potentially precarious overseas opportunities.
