Rising living costs and deepening youth unemployment are fuelling growing public frustration in Kenya, the United Nations-Kenya has said.
The UN Kenya Annual Results Report 2025 also warns that economic hardship is increasing public demands for accountability, better governance and greater economic opportunities.
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According to the report, the country's governance challenges were laid bare by the Gen Z-led protests of 2024 and 2025, which reflected widespread public dissatisfaction even as Kenya continued to post relatively strong economic growth.
"… At the same time, performance has deteriorated in security, safety and anti-corruption, underscoring persistent rule of law challenges. This challenge has been clearly demonstrated by the political protests led by 'Gen Z' activists in 2024 and, again, in 2025," the UN says.
The report adds that while the economy expanded by an estimated four per cent in 2025 and remained one of East Africa's strongest performers, the benefits of that growth have yet to reach millions of households grappling with high living costs, unemployment and persistent poverty.
"Rising living costs and deepening youth unemployment sharpened public expectations for responsive governance, social protection and opportunity," the report says.
The UN says Kenya entered 2025 under mounting pressure from shrinking fiscal space, climate shocks and persistent unemployment, limiting the government's ability to cushion citizens from rising economic hardship.
At the same time, governance reforms have continued, but their impact remains constrained by socioeconomic inequalities, corruption, weak judicial capacity and strained relations between the national and county governments.
The report shows these governance weaknesses were clearly demonstrated by the protests.
In response, the UN-Kenya says it supported the Kenyan government with advanced legal, institutional and community-based justice reforms aimed at reducing barriers to justice, strengthening oversight and improving the responsiveness of justice systems.
"These interventions are of particular importance in an overall political context in Kenya, with wide-ranging demands from Kenya's citizens for improved accountability and voice, as manifested through the Gen Z movement," it adds.
Following the youth-led protests of 2024 and 2025, UN-Kenya also established and drove the zKE youth engagement platform.
The platform sought to support structured and sustained dialogue between young people, public institutions and political actors.
The report adds that even as the economy continues to grow, many Kenyans are still struggling to improve their living standards.
"Poverty reduction remains stagnant, with almost half of the population still living in poverty despite GDP growth over the last decade, while there is a small but steady growth in US dollar millionaires," it says.
Youth unemployment remains another major concern.
Although Kenya has created new jobs, the UN says the labour market continues to rely heavily on the informal economy to absorb the growing number of young people entering the workforce.
"Job creation showed progress, but there is a persistent vulnerability in dependence on the informal sector to absorb youth growth," the report says.
The dominance of informal employment means many young people continue to work in low-paying jobs with limited social protection and little long-term security.
The report warns that the shortage of decent jobs is forcing increasing numbers of young Kenyans to seek employment abroad through risky migration routes.
"A lack of job opportunities in Kenya is leading youth to resort to irregular and unsafe migration pathways in search of livelihoods, with many falling victim to human trafficking and smuggling networks, mainly into the Middle East and Asia."
Climate change remains the country's greatest long-term development risk, with recurrent droughts and floods continuing to threaten livelihoods across the arid and semi-arid counties.
The report also cites global supply chain disruptions and rising prices for food, fuel and fertiliser as additional pressures on household incomes and social cohesion.
Even so, the UN says Kenya continues to outperform many countries in the region in infrastructure, renewable energy, digital innovation and financial inclusion.
It notes that 61 per cent of the country's Sustainable Development Goal indicators are improving, reflecting steady progress despite domestic and global challenges.
Looking ahead, the report says Kenya's long-term stability will depend on ensuring economic growth creates meaningful employment, reduces poverty and strengthens trust between citizens and public institutions.
