A recent survey reveals that inadequate formal employment opportunities have pushed many Generation Z individuals in Kenya, and across Africa, to rely heavily on digital jobs, with only a small fraction venturing into entrepreneurship.
In Kenya, universities produce around 50,000 graduates each year, according to the Commission for Higher Education. Additionally, approximately 500,000 youth graduate from various tertiary institutions annually, all eager to enter the job market.
Moreover, an estimated one million young people join the labor market each year without any skills, having either dropped out of school or completed their education without pursuing further studies.
The Federation of Kenya Employers reports that although the national unemployment rate stands at 12.7%, the youth demographic (ages 15 to 34), which constitutes 35% of the population, faces a staggering unemployment rate of 67%.
According to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2024, the economy generated 848,200 new jobs last year, predominantly in the informal sector, with only 122,800 positions created in the formal wage sector.
“The informal sector was responsible for 720,900 new jobs, representing 85% of all new jobs created in 2023,” states the KNBS report.
A GeoPoll survey found that 66.7% of Generation Z individuals in Kenya are currently unemployed. Only about 9.38% of respondents reported having jobs, while 13.46% stated they own small businesses.
“This data provides insights into Kenya’s current employment landscape, despite technological advancements and the increasing popularity of remote work,” explains the U.S.-based firm with operations in Kenya.
Due to high unemployment rates, many young people are seeking online gigs rather than traditional jobs.
Common online roles accessible to youth include social media management, transcription, graphic design, proofreading, copywriting, and virtual assistance.
With platforms like Google offering tutorials for these positions, many individuals are acquiring skills online, enabling them to earn up to KSh 8,000 per day.
“This generation is characterized as tech-savvy, mobile-oriented, and actively engaged in creative and entrepreneurial activities, spanning from tech startups to artistic ventures,” according to GeoPoll.
HIGH MOBILE USAGE
The survey highlights that a defining trait of Generation Z is their reliance on mobile technology. A remarkable 96.26% of respondents indicated they depend on mobile phones for communication and daily activities. Additionally, 2.9% sometimes use technology for communication, while only 2% do not rely on it at all.
“While many from previous generations often view Generation Z as lazy or lacking ambition, the survey findings tell a different story,” GeoPoll remarks.
When asked to evaluate their ambition compared to previous generations, the majority of respondents (82.9%) considered themselves ambitious. About 11.9% claimed to be somewhat more ambitious than earlier generations, while only 3.5% expressed neutrality, and a mere 3.2% viewed themselves as less ambitious.
Although past generations have frequently emphasized the importance of education for future success, Generation Z overwhelmingly shares this sentiment. The study reveals that 91% of respondents deem education essential, with another 7.9% considering it somewhat important. Only 3.4% of participants do not view education as crucial.
“These statistics indicate that, like their predecessors, Generation Z values education as a key factor for future success,” the survey concludes.
This exclusive survey was conducted via the GeoPoll mobile application from July 17-23, 2024, in Kenya, with a sample size of 1,986. The diverse sample comprised 57% male and 43% female respondents aged 18 to 27.
LOOKING FOR JOBS ABROAD
Amidst struggles to find jobs and access credit for business ventures, Kenya’s youth population is increasingly exploring opportunities abroad.
A report by Odipo Dev and Africa Uncensored, titled Fame, Fortune and Freedom: Decoding the Shape of the Dream for Kenya’s Gen Z, indicates that 84% of Generation Z members are willing to leave the country in search of opportunities elsewhere.
“High internet penetration coupled with a challenging economic environment is reshaping young Kenyans’ perspectives on their future and their expectations regarding the job market,” the report states.
Only 16% expressed a desire to remain in the country. High youth unemployment rates, political instability, and limited career advancement opportunities in Kenya are significant factors driving this trend, according to experts.
Many young Kenyans feel that their skills and education are not adequately recognized, leading to frustration and a search for better opportunities elsewhere.
GOVERNMENT INITIATIVES
President William Ruto has emphasized the importance of developing a digital economy, with his administration identifying the “Digital Superhighway and Creative Industry” as a priority under the Bottom-Up Economic Transformation Agenda (BETA).
The government is investing in the digital economy to create more youth opportunities, aiming to position Kenya as an ICT innovation hub.
Key initiatives include the National ICT Policy, Kenya Start-Up Act, Data Protection Act, Digital Economy Blueprint, and the Konza Technopolis project.
“The digital transformation agenda is tangible, achievable, and supported by a solid institutional framework,” President Ruto stated at a recent forum.
He noted the goal is to enhance government investment in essential infrastructure, including national broadband and digital hubs, to generate jobs for at least one million digital workers within the next five years.
The country is also rolling out the Kenya National E-commerce Strategy, launched in December 2023, which aims to create a favorable environment for developing trusted e-commerce services accessible to everyone.
This strategy is set to provide a roadmap for improving the performance of Kenya’s e-commerce initiatives, ensuring growth, competitiveness, and accessibility of services in the sector, according to the KNBS.
“The digital landscape helps eliminate geographical barriers and encourages innovation,” the KNBS added.
President Ruto has also urged Kenyans to explore job opportunities abroad, highlighting that his government has established several agreements with foreign nations to create employment for Kenyans.
As of July, the government reported approximately 400,000 job openings available in the diaspora.