The Unemployment Rate in Kenya, has become a central theme in economic discussions and policy formulation. As of 2025, the country's unemployment rate is about 12.5%. This statistic underscores the persistent difficulties in generating adequate job opportunities for a burgeoning workforce.
Young people aged between 20 and 29 make up the bulk of the jobless population, with about 800,000 new job seekers joining the market every year.
In the wake of a youth-unemployment crisis, President William Ruto has pointed an accusatory finger at his predecessors.
Speaking on Wednesday during the launch of a police housing project in Kilimani, Nairobi, Ruto hit out at opposition political leaders for allegedly inciting the youth over joblessness, insisting the problem did not start with his administration.
“People are trying to suggest that youth unemployment began when I became president. But was every young person employed before 2022?” he posed.
He blamed past regimes for failing to address the unemployment crisis, arguing that Kenya had lacked a clear roadmap for job creation until his government came to power.
“What makes this issue seem bigger is that Kenya has never had a deliberate strategy to create jobs for the youth. I am the first to work on a plan to resolve it,” said Ruto.
He cited efforts such as the Affordable Housing Programme, the digital job creation initiative, and the Kazi Majuu labour export plan as key solutions already in motion.
“Currently, 320,000 youths are working in the Affordable Housing Programme, 200,000 in digital jobs, and 400,000 have secured employment abroad through Kazi Majuu,” he said.
His defence of government efforts came days after a recent report warned that youth employment remains limited due to a mismatch between graduate skills and market needs.
According to the report, nearly two million young people enter the job market annually, but only about 800,000 jobs are created, mostly in the private sector. Few opportunities exist in the public service, while most job seekers lack the hands-on skills required by employers.
Latest data from the Kenya National Bureau of Statistics show that the number of unemployed Kenyans rose to 2.97 million after the 2022 general election—a 3 per cent increase linked to reduced hiring and stagnant wages.
The high unemployment in the country has seen individuals turn to compromise measures to achieve economic independence. Youths have turned to crime, drug abuse, prostitution, and other heinous ways to make money. Unemployment has also led to depression among Kenyan youths.
In recent days we have seen a number of Kenyan youths who have come out to beg for jobs. Many have stood on the highways holding placards describing their academic qualifications and asking for jobs. Some have more than one degree and master’s. Some graduates have threatened to burn their certificates because they feel they no longer need them.
Causes of Unemployment in Kenya.
Mismatch in skills development and demand
Skills mismatch is a difference between the skills that are needed by the employer and the skills that are possessed by the graduate. Most universities in Kenya are training students with skills that are not meeting the labor demand. Most graduates end up looking for jobs in vain because their skills are obsolete.
Corruption.
Corruption is not just an ethical issue. It represents a serious degradation of the institution necessary for the proper functioning of an economy. It’s a hindrance to job creation and the promotion of social equality. Corruption prevents fair competition as individuals are awarded according to whom they know, the money they offered compared to qualifications. Many Kenyans have been cut out of the job market due to discrimination by corrupt officials.
Education System.
For a long period, the education system of Kenya has been blamed for the continuous increase in the number of unemployed people in Kenya. According to experts the 8:4:4 system trained students to become job seekers rather than job creators. Many students do not have the technical skills where they can create their own jobs and instead rely more on formal employment or white-collar jobs. The government introduced the competency-based curriculum (CBC). In this new curriculum, the learner is thought more relevant skills to solve problems and be a critical thinker.
The emergency of non-certified Colleges and Universities.
The number of colleges and universities popping up in Kenya keeps on increasing yearly. Without properly investigating their credibility many Kenyans have ended up joining these varsities and end up with fake certificates since the schools are not registered or certified to offer some of the courses. The graduates end up with degrees that are not recognized and cannot secure jobs.
Low level of education.
The high cost of education excludes those who cannot afford education. Because of poverty, many students have dropped out and discontinued their education despite getting good grades in their primary and secondary education. The government has introduced bursaries and scholarships for needy students but not all of them are reached. The HELB loan that is offered for university students is not enough as the institution is also dealing with huge debts from the beneficiary who have not paid the loans after graduating due to unemployment. To secure a job in Kenya employers ask for at least a secondary school certificate.
Recommendations
For Kenya to reduce the number of unemployed people from individual to the national level, they should put the following into consideration:
Support the creative industry. The creative industry products such as music, art, film art, and many others have employed many youths directly. The government can support this industry by providing a conducive working environment such as reducing taxes, protecting copyright laws, paying and distributing royalties.
Support youths to create jobs. The government can do this by offering entrepreneurial skills and technical skills.
Offer business loans with lower interest where small business owners can take loans.
Employment statistics. The government should have reliable unemployment data for future programming and interventions.
Holistic education system. An education system that is all-inclusive and allows students to get skills that are relevant for future use.
There are a number of factors that have resulted in the high rates of unemployment in Kenya. Education, skills, industry, and economic growth are among the factors. To end the unemployment cycle in Kenya, we have to highlight, review and remind ourselves of these factors and provide solutions to curb the joblessness calamity.
