Kenya is addressing the challenge of job quality and youth unemployment, despite a relatively low overall unemployment rate of 5.4% and youth unemployment at 8.4%. A significant portion of the workforce is engaged in informal jobs, lacking stability and adequate pay. With only 10% of workers in formal employment, many find themselves in low-skilled roles with limited growth potential.
The country's population is expected to reach 63.9 million by 2030, including 22.3 million young people aged 15-34, further intensifying the employment challenge for this demographic. Enhancing micro and small enterprises has been identified as a viable solution to create opportunities for vulnerable youth.
"Ujasiriamali," or entrepreneurship, is a key component in these efforts. Liz Kerubo Nyakundi serves as an example of success through the Kenya Youth Employment and Opportunities Project (KYEOP), supported by the World Bank. Liz applied for a KYEOP startup grant with aspirations to start a honey-processing business. With $400 and business training in accounting, marketing, and business setup tips, she founded "Akila." Six months later, her business expanded to include beekeeping and passion fruit farming.
To date, nearly 86,000 youths have started their own businesses through KYEOP's support. "Remarkably, 88% of the beneficiaries who received grants like Liz successfully launched or expanded their ventures," highlighting the program's impact on fostering entrepreneurship as a career path.
This initiative aligns with Kenya’s Vision 2030 to address youth unemployment and transform the country into a competitive nation with improved living standards. The World Bank's support helps prioritize human development goals.
KYEOP tackles youth employment challenges by addressing gaps in supply, demand, and labor market intermediation. Selected from over 12,000 applicants, its beneficiaries received up to $36,000 each leading to thousands of new jobs created across Kenya.
Efforts under KYEOP also focus on empowering women entrepreneurs by providing resources such as childcare services and direct grants while setting quotas for individuals with disabilities through initiatives like "Future Bora Initiative."
Additionally, KYEOP partnered with local businesses to connect young entrepreneurs with government programs like Access to Government Procurement Opportunities (AGPO). This comprehensive approach helped many youths turn ideas into thriving businesses contributing positively to community growth.
Following its success, KYEOP has evolved into the National Youth Opportunities Towards Advancement Project (NYOTA), aiming to serve even more vulnerable youths across Kenya's counties.
As part of its ongoing commitment to fostering entrepreneurship among young people alongside partners such as the World Bank—Kenya aims for sustained economic development throughout Africa by continuing investments in evidence-based interventions that drive job creation initiatives forward successfully.
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